All Forum Posts by: Doug Smith

With the WSJ Prime Rate in the 8%s, you're probably in the 9%s on your line right now (just an assumption). If that syndication doesn't work as well as you hope, then you're eating interest. On the other hand, if you've got liquidity in the IRA it needs to be working for you. Longer-term money like that means you can be more patient without constantly hearing the tick-tick-tick of interest racking up on the pull from the HELOC. That being said, you know your situation the best. Good luck!

Although we do investor loans nationally, we only do consumer loans in FL. We've got a conventional program that will allow you to renovate the property after purchase. What State are you in?

Quote from @Wayne Doucet:

Wanting to know if they have any DSCR lenders that will loan on a condo. I'm not purchasing both units just one of the two?

 Yep...just closed one on Friday. 

I do a lot of ground-up spec construction for investors. We usually like to see the land purchased and the permits in hand before we fund the construction phase, but the amount spent on the land and other soft costs go towards the down payment. Here's another key...we usually want to see that someone has done similar projects in the past...or at least projects of progressively increasing complexity. 

Use a good agent...I didn't say any agent...I said a good one that really understand the construction process. Builders normally build in a little something for buyer's agents, and the NAR agreement doesn't take the buyer's agent comp out of the MLS for a bit, but the agreement still allows for them to offer something to the buyer's agent. Use a good agent and they'll make the process smoother. You're not going to get a better deal by doing it yourself...trust me on that.

Quote from @Lara Di Girolamo:

Hey community, 

I'm trying to expand my contacts, any realtors or fix and flippers near Clearwater or St. Petersburg?

Let's be in touch!

We do both of those...we have been flipping and doing ground-up spec construction for 15 years as well as a realty practice and, to top it off, I've been a lender for 33 years and own an NMLS-licensed mortgage company that does a ton of work with investors. Let me know what help you need. 

Quote from @Kenton Guidry:

Quote from @Doug Smith:

I always question first time posters end their post by saying "I saw this company called "X"". If you're for real, my apologies, but your post looks like a sly ad. 

I can understand that. The vibe I am getting is that there are a bunch of these companies out there and maybe they are good or maybe they are just a scam. I am trying to determine if there is any company that will help the process like they do. 

 Ah...gotcha. There are tons of fake first time posters on here saying "have you ever heard of X. they sound great." My apologies. We've flipping and ground-up spec building for 15 years and lending for 33. I find most "mentors" or "gurus" lack experience in actually doing it (those that can't, teach). I've not heard of Investor's Edge, but definitely look at the backgrounds (resumes/Linked In profiles) of the principals to see what they did in the past. 

I always question first time posters end their post by saying "I saw this company called "X"". If you're for real, my apologies, but your post looks like a sly ad. 

That's a hard question with no perfect answer. If you hit a home run with your first investment, then you look like a genius for jumping in. Conversely, if things don't go your way...you run into mold or some other unexpected issue, the real estate market takes an unexpected negative turn, a terrorist runs airplanes into a NY skyscraper...things can go South quickly for you and your family. I've always been of the mind that I should listed to flight attendants when they say "in case of an emergency, put on your oxygen mask first and then help those around you". I wish I could answer your question for you, but only you and your family know your situation. I'm sure you'll make the right call for you. Now for payment for my advice. My wife and I love visiting NoCal every year or two to explore wineries. Any recommendations for great wineries that we might not know about?

Quote from @Carlos Oliva:

Is private lending as simple as it sounds or are there regulations to follow. 

For example, can I simply let a friend borrow $25k & get paid back with some interest or is there some reporting & rules involved before engaging in such practices?

 It's not as easy as it sounds. It's very nuanced. I remember when I got out of college and started with a bank, my learning curve was steep and I made a lot of mistakes. When you're a private lender lending your own, limited funds, you can't afford a mistake. Even the pros have deals go bad. Ask yourself each time you lend "can I afford to get this wrong?" If the answer is no, get an experienced pro's help.