RE Investor · Baltimore, MD · Member since 2015 · 24 posts · 1 vote
Hello to all you investors out there.
This is my story:
Me and my husband came from israel to baltimore to be real estate investors. I studied for three months in Israel on line, learning all there is to know about the subject. Paticuler about fix and flip.
Now we are here and we are finding it difficult to get a hard money loan.
We have a grate deal, but the hard money lenders I spoke to don't even want to here about it. Thay here about no incom, and my cradit schor that is nothing right now. And asking for 20% down. Witch is a problem for us, because we are living on are savings.
You spent three months "learning all there is to know about the subject. Paticuler about fix and flip." And yet, even after learning all there is to know about fix-and-flips, you didn't learn anything about how to finance the deal. Really? If the rest of your knowledge is on a par with your knowledge about financing, you're going to run into some problems when you actually find a deal.
Next, Steven Wiggs was being very polite about checking your spelling. Here's just one of your sentences: "Thay here about no incom, and my cradit schor that is nothing right now." I would seriously question whether you'd be able to fill out a contract. No, I wouldn't question that. I'm confident that--as motivated and intelligent as you may be--you don't have a sufficient command of English to fill out a contract.
Next, you have no job. No credit. No money. And no experience. No wonder no one's taking you seriously. I agree with Seth Sherman: Get a job. Establish credit. Save some money.
Tip: You think you have a deal? OK. Put it under contract and try wholesaling it. If it's really a good deal, you won't have any problem wholesaling it. No, you won't make $30,000 or so on the deal. You might make $3,000-$6,000. But do a few of those. Find out what rehabbers are looking for. Do that for a year or two. Then you might be ready to get into rehabbing.
@Molly Krief, congrats on your new life in Baltimore, and good luck on your RE Journey! Reading the thread, I believe that people are only trying to be helpful. Although I am a newly minted RE investor, I'm particularly interested in Baltimore deals - feel free to message me regarding opportunities.
Grit and determination are key ingredients to success in all areas of life. You have plenty, use it wisely and you will win!
@Molly Krief I think people mentioned some great tips but also I would question, how are you presenting the deal to the hard money lender? I've given my HML guy a package with all the info straight from MLS as well as a scope of all the work that needs to be completed and it looks very professional and very clean. Even though I'm new, my HML notices that I have a good quality of work (even if it's little things like that) and he is willing to work with me. Hate to say it but yes, even spelling can turn away a HML. Real estate investing is sort of the Wild West and the more professional you are, the more willing people are to do business with you.
I think the first thing you need to understand is that no one learns "all they need to know about RE in 3 months". Not even the pros. All these scams and get rich quick BS you see advertised is for the most part pure malarky and unrealistic.
Credit, employment and the ole "SKIN IN THE GAME" cliche is more necessary today than it ever was. My suggestion would be for you and your husband to get jobs working for some experienced investors and hard money lenders even if it's for menial wages just to gain some hands on experience and hang onto your savings for when you do have a good opportunity to make a play.
Perhaps the mentors you work for will even give you an opportunity to partner up with them on a deal or two before you jump into the fray. Just be careful who you get involved with and avoid the hucksters that are only trying to separate you from your cash. There's lots of vultures out there who would love to have you for lunch if you give them the opportunity.