Got Funds!! Now what???

Buying & Selling Real Estate
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Got Funds!! Now what???

Chiquita Mcgill
Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes

Hey, guys i really love bigger pockets, i am a newbie and have been conditioning my mind on the 1st property i will buy and hold as a rental! i have a PML in mind in Massachusetts and we already spoke on the phone and he is willing to lend me up to 2.5 mil at 3% interest with no tie to the property. the only thing i pay is the insurance for the loan and thats around $1500-$2000. I have been looking at buying a small apartment as my 1st purchase, or a package of SFH. Im looking to scale quickly in this business to quit my job in 2018 and have my finances supplemented by then. Im looking for advise on how you experienced investor started out with your 1st property and how realistic can you scale this business in REI. I want to invest in Apartments, Duplexes and SFH, just cant choose what i should laser focus on 1st. Thanks guys for your responses.

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Brent Coombs
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
10y

@Chiquita Mcgill, it sounds like a SCAM to me! (Can you prove it's not)?

Are you ALREADY out of pocket any dollars? If not, I would advise you not to hand over ANY of your own dollars at this stage. Once you find any attractive "deals", please post your analysis numbers here BEFORE signing any dotted line. All the best...

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  • Brent Coombs
    Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
    10y

    @Chiquita Mcgill, it sounds like a SCAM to me! (Can you prove it's not)?

    Are you ALREADY out of pocket any dollars? If not, I would advise you not to hand over ANY of your own dollars at this stage. Once you find any attractive "deals", please post your analysis numbers here BEFORE signing any dotted line. All the best...

    4Reply
  • Chiquita Mcgill
    OP
    Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    10y

    @Brent Coombs How do i know its a scam? What should i look for in a PML? 


    0Reply
  • Andy Hudgins
    Covington, GA · Member since 2015 · 99 posts · 33 votes
    10y

    @Chiquita Mcgill Please hurry over to the "Marketplace" tab above and click "Hard Money Lenders" and notice their rates.

    3Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Chiquita Mcgill

    We do free multifamily investing training for veterans please EMAIL me for info. my BP PM does not work.

    Paul

    1Reply
  • Colonel Boothe
    Investor · Worcester, MA · Member since 2011 · 17 posts · 2 votes
    10y

    I would run far from anyone who says they will loan you money especially that much without you paying at least 10% down.

    I deal either multiple hard money lenders and they all loan conservative amounts of money until you've proven yourself to them. 

    1Reply
  • Colonel Boothe
    Investor · Worcester, MA · Member since 2011 · 17 posts · 2 votes
    10y
    Originally posted by @Colonel Boothe:

    I would run far from anyone who says they will loan you money especially that much without you paying at least 10% down.

    I deal either multiple hard money lenders and they all loan conservative amounts of money until you've proven yourself to them. I've also yet to meet anyone loaning at an interest rate of 3%.

    0Reply
  • Angela Hansen
    Investor · Fayetteville, NC · Member since 2016 · 19 posts · 6 votes
    10y

    @Paul Timmins

    I am interested in your multi family investing training for veterans. I am currently in the process of figuring out what kind of lending options I have on a multi family property that I am interested in.

    Plus I am new to real estate and could use the education. Thanks.

    0Reply
  • Chiquita Mcgill
    OP
    Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    10y

    okay i am going to read that hard money loan forum. So if i see a posts in a REI Facebook groups, stating they are PML and rates are low, i shouldn't look that way or anything...? i should stick with the high rates and points.?

    0Reply
  • Chiquita Mcgill
    OP
    Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    10y

    @Colonel Boothe @Paul Timmins @Andy Hudgins

    0Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Chiquita Mcgill

    My BP PM does NOT work EMAIL me to connect

    Paul

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Chiquita Mcgill   this is nothing more than a Nigerian type scam

    think it through .. unless you personally have a ton of liquidity and experience

    there is no lender on the planet that is going to loan you 2.5 million regardless of rate.

    and there is no lender on the planet that gives out 2.5 mil dollar unsecured loans.  and for that matter a secured loan.

    you can sent them your 1 to 2k you can then kiss it goodbye.

    this scam is all over FB linkedin BP etc etc.

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    1Reply
  • Chiquita Mcgill
    OP
    Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    10y

    @Jay Hinrichs hey thanks i haven't sent any money but i'm glad i can get this type of info and realize that some people are not legit. I really appreciate the comments! I am going to the marketplace on here and apply for 1 of the PML's.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Chiquita Mcgill   here is reality.

    if you want to buy into cash flow properties. you can do it 3 ways.. both require YOU to have cash.

    Or a cash partner if you do not have cash.

    1. pay cash then refi and pull cash out and do it again.. commonalty called the BRRR method which I was doing 20 years ago.. by the way.. although some on this site think its a new concepts :) then this requires you to have very good credit and income that you can prove so you can indeed refi .. don't pay cash for something without having your refi set up ahead of time.

    2. you have excellent credit , income you can prove and 20 to 30% down generally.. sometimes as low as 15% for very qualified borrowers.. and you buy your rental .

    3. You provide the cash to a ground partner and do deals together...

    If its cash you need then the only thing of value you would bring to a potential cash partner is the ability to buy assets at a great price or you can prove your one heck of a operator.

    And lastly you can go out and try to talk sellers into selling to you with no money down and they extend credit to you... in some markets this can happen those are generally low value areas or war zone ghetto type places were the seller just wants out.. hard to find that in good areas ..

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    0Reply
  • Cassie Sherie
    Seattle, WA · Member since 2016 · 81 posts · 43 votes
    10y

    @Chiquita Mcgill like the saying goes "if it's sounds too good to be true it usually is" ...think about it... you don't have a track record in real estate investing, this person doesn't know you, never met you, and someone is willing to just hand you over $2.5 million?? and only at 3% interest? Give me a break, I'm new too but that makes no sense. No one in their right mind or with the right intentions would do a deal like that and hand out that kind of cash. Not trying to burst your bubble, but do yourself a favor and don't be so trusting or gullible. There's lots of evil scammers out there who take advantage of new investors who are overly excited and in a rush. Make sure you thoroughly look into and fully vet whoever you partner with... and make sure they are 100% legit...anyone can make a website and lie about what they have done or what they can do for you. 

    0Reply
  • Charles Marshall
    Hingham, MA · Member since 2015 · 78 posts · 21 votes
    10y

    @Chiquita Mcgill.  This community is watching your back.  And for no other personal reason other than to support other investors.

    1Reply
  • Chiquita Mcgill
    OP
    Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    10y

    @Cassie Sherie @Jay Hinrichs @Charles Marshall @Paul Timmins Hey guys thanks for the advice I surely appreciate it, if you guys are ever in San Diego i would love to take you to a lunch or just have coffee for you being so generous and taking the time out to give me advice!

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Cassie Sherie   its simply RE lendings  version of the NIgerian scam.. IE   my rich uncle in Nigeria died and left 20 million in a bank account I just need you to help me get it.

    this would not keep coming around if people did not continually fall for it.

    There are companies that make a living on Due diligence fee's  fund just enough not to get shut down..

    Bottom line is with no expiernce no capital = no for real loan that's the bottom line.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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    0Reply
  • Cassie Sherie
    Seattle, WA · Member since 2016 · 81 posts · 43 votes
    10y

    @Chiquita Mcgill  No problem, don't allow this to stop you from pursuing your goals! Just be more cautious, know that not everyone will have your best interest in mind...and there's people (don't know if you can even call them people cause they are more like monsters) with ill intentions to only benefit themselves...no remorse or care. With that being said, take a deep breath, carry on, just learn as much as you can about the process, and put together a great team of professionals that will look out for you 

    😊  👌

    0Reply
  • Cassie Sherie
    Seattle, WA · Member since 2016 · 81 posts · 43 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Cassie Sherie   its simply RE lendings  version of the NIgerian scam.. IE   my rich uncle in Nigeria died and left 20 million in a bank account I just need you to help me get it.

    this would not keep coming around if people did not continually fall for it.

    There are companies that make a living on Due diligence fee's  fund just enough not to get shut down..

    Bottom line is with no expiernce no capital = no for real loan that's the bottom line.

     @Jay Hinrichs 

    ******! (is that word allowed on BP??)  LOL...not trying to go against policy...was just trying to sum it up in one word.  😊

    0Reply
  • Cassie Sherie
    Seattle, WA · Member since 2016 · 81 posts · 43 votes
    10y

    @Jay Hinrichs  wellllllllll I guess I found out my answer with the above censorship  ****TY!  LOL

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Cassie Sherie  I like to call these people that do this  financial Sociopaths... and or just straight up felons !!!

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Austin Mudd
    Real Estate Agent · Los Angeles, CA · Member since 2015 · 149 posts · 75 votes
    10y
    Chiquita Mcgill how did you come across this scam? Craigslist? FB?
    0Reply
  • Chiquita Mcgill
    OP
    Real Estate Investor · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    10y

    @Austin Mudd Hey yea i came across it on a FB post in one of the Cali REI Groups.

    0Reply
  • Austin Mudd
    Real Estate Agent · Los Angeles, CA · Member since 2015 · 149 posts · 75 votes
    10y

    @Chiquita Mcgill Probably a good idea to alert the manager of the FB page about the person who posted that. How was the post worded and advertised? Curious

    0Reply
  • Tommy Mosley
    Real Estate Professional · Savannah, GA · Member since 2016 · 27 posts · 1 vote
    10y

    @Jay Hinrichs great info maybe you could give me some insight as well I am in a similar situation I have cash to purchase my first property but my credit is in the trash so to speak.... So what if any options do I have to obtain a HELOC or loan

    0Reply
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