All Forum Posts by: Craig Rismiller

@Bryan Hancock I took a quick look at the deal and it may be something that I am interested in partially funding. I am going to post a couple of questions here as they might be of interest to the entire BP community (feel free to contact me directly if you would rather discuss privately):

- How is the debt portion of the deal being funded - is this through a local bank?

- As in most syndication's, will the debt be non-recourse to the equity investors?

- Once the deal is fully subscribed, what will be the timing for the equity to be funded?

- You mentioned above the equity / sponsor split will be 10% preferred, 10% catch-up to the sponsor and then 50/50. Looking at the proforma it appears to slightly different with 40% going to the investor and 10% to iFunding. Is the later the correct profit split?

Thank you in advance!

Yes the property is still available, renters needed to stay a couple of extra weeks hence the delay. My guys are getting the house ready for sale now and it will likely be up on the market by Thursday.

I may have been a little optimistic on my pricing so I am willing to be more aggressive on a cash sale. Lock this up before it hits the market for $160,000 cash or private money (i.e. quick close). If you need a finders fee and / or commissions you need to add that to the price. I am not interested in options on this one, just a straight sale.

Shawn - Welcome to Biggerpockets. Did you take out a loan to cover the difference on the purchase price and your cash invested ($48k purchase - $18k cash = $30k loan)?

So I am guessing that the new $65k private / hard money loan would wipe out the current debt, fund the $35k rehab and end up being a 1st position on the property...is that right?

If this will be a 1st position, send me a PM, I may being interested.

Craig

@CarolyneRattle

Is your total investment in this deal now $270k ($175k + $95k)? If that is the case and the ARV is $320, and $25k more is needed, I think you are going to end up taking a bath after you pay commissions / selling costs.

Also, how can you have spent $95k with $25k more to go and you are only 50% complete with the project?

Do you have experience flipping projects yourself? If you JV partner isn't performing and he/she doesn't have cash in the deal, I would try to get him to step aside so you can finish the project and salvage at least some of your investment.

I am selling a SFH from my personal portfolio in Laveen, Arizona (West Phoenix). Here are the details:

- 8700 block of S. 50th Lane, Laveen, Arizona (email for exact address)

- Built in 2004

- 4 bd, 2.5 half bath, 2 -story w/ garage

- New carpet, blinds, landscaping in 2012. AC condenser replaced in 2013

-We had this rented on a 2 year lease for $1050 per month but I just check rentometer but it looks like rents have climbed to $1200 to $1300 range

- Current tenants are scheduled to move out at the end of May and I plan to keep vacant for the new buyer

- Property is off-market, but I will probably list with my normal agent in 2 weeks if I can't get it sold myself. BPO of $180 to $185k

WILL SELL TODAY FOR $172K (no agents please).

We have dropped the price on this lot to $390k... If you are interested, make us an offer and we will see if we can work something out.

Here is a link to the MLS listing which has lot specifics and several pictures of our condo complext next door:

http://www.realtor.com/realestateandhomes-detail/817-E-Roma-Ave_Phoenix_AZ_85014_M22034-96893?row=4

We may still be open to a JV on this but you MUST be a PHX based developer or have direct access to a commercial builder so we can get the best prices.

You really need to check your state laws (google "states name" tenant act). In AZ you need to either personally deliver a notice to an adult living at the residence or mail via certified mail (ie taping to the door doesn't count). For what it is worth, we still tape the notice to the door if they are not home / not answereing when we knock but we will immediately send via certified. Also check the rules on when your clock starts on the certified letter. In AZ I believe it is 'assumed deliveried' after 5 days; though practically it's of these bounce back to me (hence the reason to post on door, call/email).

And Wayne is correct - you need to have this lined up before you bid.

What type of auction is this (i.e. foreclosure, trustee sale, etc)? What are the requirements at this specific auction?

For example, we have bought several properties at the Maricopa County Trustee Sales (i.e. Phoenix Arizona foreclosures) and the rule is that you need to give them a non-refundable $10k cashiers check as soon as you are the winning bid and you hav 24 hours to refund the remaining balance or you lose the $10k. We used HM on one of our purchases but basically had the HM lined up prior to us winning.

So it is possible, but here is roughly what you should expect (this varies location to location):

- You will need to put money in the deal - we put 20% cash down. Some HM lenders will do 100% but only if they have time to really go see the property, have the rehab #'s, etc.
- Expect to pay a premium for having to close so quickly. We paid our HM lender 18% with no points
- You may try finding a private money partner vs. hard money as they may be more flexible. You need to be pretty sure though of your ARV and rehab costs so you know the max you can spend at the auction

@Choong Im

Welcome to BP - You will get much more action on your thread if you provide us investors with more information.

A couple of things to start:

- Address or Zip Code of property

- Your purchase price

- Downpayment / equity needed

- Other cash needed to stabilize property

- ARV

- Gross rents / expenses / NOI

And finally it would be great to know what you were thinking in terms of profit splitting between you and the passive investor