All Forum Posts by: Adam Jones

by the way thanks so much for all the responses this forum is epic!

@Jeff S.@Chris Seveney

Thanks so much for both of your input. Id like to get better and raising capital and honestly being more professional at doing so. I've borrowed money from many different people over the past 8 years and its always been easy and handshakes put them on title all. I have the capital to back whatever I borrow I just wanted to invest other peoples money to make them money and not tie up my capital for other deals that are coming. I borrowed 500K to purchase a property in oceanside ca and I put up the balance and the renovations. so we are invested together. Also with this wild market I put together worst case scenarios if I need to keep the property and rent it and pay my investors back its a short term loan. project is 30-45 days rehab and  2 months on market if it doesn't sell in 30 days I figured id finance out of it and leave in 40 k of my capital and come back to it in a few years it will cash flow 600.00 with a 7% interest rate. its all borrowed money from private people.

so I just want a professinal way to make my investors protected. I like you idea @Jeff S.with speaking to a lending lawyer. I closed this deal on my standard handshake. @Chris Seveney I always pay because I have the capital to pay it back

@Charles Carillo,

Thanks

That was my thought. I just wanted confirmation love this forum thank you again.

I am borrowing money from a private lender to flip a house. 

What is the best way  to protect my private lender ? Put them first on title?  Have escrow file a promissory note? what other options do I have? 

I want to make it clean and simple thanks In advance.

Adam

Need help with the structure of a deal.

I’m trying to buy a duplex across the street from a duplex I already own.

I spoke to the owner and she owes 175k on her loan and I’m purchasing the property for 800k. I ask if she would do owner financing and she said she would for one year at a 4% rate which is cheap for me. I need to do some work on it to get it rental ready and I have 3 flips going and I’m tight on cash. the property is worth 975k because I just had my model match refinanced and that’s what it appraised for. So I will renovate and do a cash out refi and it will be a great deal. But I need help structuring my offer and need the bigger pocket minds to help.

Option 1: take over her payments and give her 80k down, pay the mortgage?

Option 2: get hard money loan for her loan to pay it off?

Option 3: get conventional loan for her loan balance?

I don’t know exactly how to do this one thanks for the help In advance.

Adam

Sorry @Alex Bekeza 🤪

Wow! This is amazing information I can’t tell you how much I really appreciate all of you taking the time out of your day to help me find different angles on this deal. so far hard to get a P&L from the existing owner they are flipping it but I’ve found a few ways I can increase the value with minimal work. 

I’ve spoke with a commercial lender that said since the properties are adjacent to each other it shouldn’t be a problem. But @tj hines I like your idea of splitting it up for future possibilities.

@Mark Fries😂😂

This is my first post on this forum but I’ve been a long time listener and lurker.

I’m in contract on 2 tri-plex units being sold as 1 six unit. I’ve flipped 18 homes and purchased 2 other multi families with standard home loans. I want to learn how to get a commercial loan but I have never done it. What should I prepare for a commercial lender I have called 2 but no response from my local referrals. I will take any referrals and advice on the process thanks in advance.

Adam