All Forum Posts by: Bob Woelfel

@Glen Thomas Corder if you are walking in as the end buyer then yes the funds are due tomorrow.  Actually, regardless if you are in the middle or the end buyer the funds are due.  The wholesaler in the middle uses the transactional funding as it's just for a day.  He/she uses to buy the first deal and the end buyers funding is used to buy it from the wholesaler.

@Daniel Mendez the way you describe this is somewhat confusing. The reason most people purchase the property in cash or with a hard/private money lender is because it typically needs a fair amount of rehab, which will allow the BRRRR strategy to work in the way it's intended. Many times long term lenders don't like to finance those types of properties. So...you would use cash or short term financing to buy and renovate the property. Once you have it completed and a tenant in place then you work on the refinance which will allow you to cash flow the property the way it was intended.

If you put 20% down then you will have to come up with all the rehab funds as well.  Most investors don't want to tie up that much money into a property.  

I'm with @Brian G. here.  I would look to refinance to pay off your partner and try to keep that cash in your pocket.  

@Brian G.....Richard Philips just made my point for me.  

@Account Closed...yes please wire funds immediately.  Thank you.

@Account Closed if you are buying the deal from the wholesaler then you will be the buyer on a contract and he/she will be the seller.  The wholesaler will also have a separate contract with the current homeowner.  They will have to either buy in cash or use transactional funding.  You can use whatever loan product you want, assuming you close on the day the wholesaler needs you to close.  The title company or attorney should be able to help significantly with this.

@Brian G. if that is the situation then it's going to be more of a personal preference for you to decide.  Do you have a good team on the ground where the property is that you trust and you know your numbers are accurate?  Then you may not need another set of eyes.  The reality is that managing rehabs can be hard, especially if you can't drive to the site on a regular basis.  Contractors aren't always good and aren't always honest.  A local lender will actually visit the property when you make a draw request and they will verify the work the contractor says they got done is actually done.  It's really up to you and your personal situation. 

@Brian G. I have always recommended people to try and work with someone local, particularly if you are knew and here is why.  It's someone you can meet, shake hands with, build a relationship with and who has a reputation to protect.  Now I know that doesn't mean as much to people today as it did years ago, but there are a lot of stories out there about investors who sit down at the closing table and the rates and terms from their lender are not what they had thought they were.  Then what do you do?  Do you pick up the phone and call someone on the other side of the country?

I personally think our company brings a lot of value to the table for investors we work with.  We have processes in place to protect investors in dealing with contractors and we are a second set of eyes on the deal.  We want you to succeed and make money so you can continue to do deals in the future.  We are visible in our markets and have a reputation to protect.  Our money is not always the cheapest, but newer investors should care more about learning on the job and growing as opposed to saving 1-2% on a deal.  that knowledge base is going to benefit you significantly more than the little extra cash in your pocket.  Just my 2 cents.  Good luck.

@Jay Hinrichs no question.  I don't think I've ever seen anything that extensive either, but I thought it was a pretty thorough analysis with a bunch of examples that could help the OP get to where they wanted to go.  You are right though, I don't think that's the expectation level that needs to be achieved.  Thanks for the insight Jay.

@Casie Nicholson start saving some money and get educated.  It's pretty difficult not to mention extremely risky to start this with $0.  Get your personal financial house in order first.  This is a long term play.  Sell some stuff, cut back on expenses, pay off debt, save money, etc.  Don't be in a huge rush as you have to learn the process.  I would read @Steve Hall's post about 20 times.  If you are asking people to believe in you and trust you then you better come to them with a plan.  You better know what you are talking about and you better know your numbers.  The first flip I ever did was with a private lender who was not a family member or friend.  I met her through an acquaintance and I was able to impress her enough with my knowledge and plan that she agree to work with me on a project.  I was a licensed agent, I had previously done a live in flip where I did almost all of the work myself and I had a separate full time job that paid me pretty well.  I had a number of things going for me that made me less of a risk.  Good luck.

Sorry man.  Caleb and Caleb are right.  That's the way it goes.  We do the same thing.  it should have been explained to you up front so you aren't in this situation.  Once you've made the first payment, you should be able to use the reimbursement funds to continue the job and just rinse and repeat.  Good luck.