All Forum Posts by: Clifton Kaderli

Non-recourse? Looking to build inventory in my IRA.

Yes, sometimes a property for FREE is a bad deal.  Post the particulars and get feedback.  Message me directly if you don't want to post details.  I have an interest. 

The answer depends on your objectives and the condo(s). 

If you want a vacation rental that you can cash flow or almost cash flow BUT you have a place to go ski, scuba... then great.  See the vacation rental podcast on BP. 

Condos vary as much as SFR. The devil is in the details on the fees, and stipulations. For example, an association may restrict to only owner occupants in all or a percentage of the units. If they don't do this, then the owner/occupants have a very difficult time financing.

Condos can also act like the canary in the coal mine for market conditions (not my quote).  They are the first to fall.  A canary will die in a coal mine before humans, so the humans know to get out when the canary is dead. Condos and markets can function in similar fashion.  

Condos in Austin, TX can look like a high rise or like a duplex.  Again, another huge topic within a topic.  Doing a condo regime can give you the ability to gain higher density than you could otherwise. You therefore can make more money and/or crush your competition.  

These are just a few thoughts on a large topic.  

What flavor of condo did you have in mind?

If you have cash to put "skin in the game" you should have no problem finding good rates for asset-based lending.  You will likely need 20% of acquisition and 20-30% of renovation, plus interest payments. 

Looking for Texas, and Virginia.  Sounds like you are brokering bulk of some sort.  Keep me in mind.  Thanks for posting. 

Finding the deal is everything.  The rest is business fundamentals.  Happy to share thoughts.  I am fairly new to BP.  From what I see on the forums you have a network of mentors to help you.  

Find someone who has the fundamentals. Have them coach you on finding the deals. Shadow or JV as they process deals. You will wake up one day able operate on your own.

If a private lender will lend for a term of 2-3 years on a buy-hold then you can typically cash out refinance at a bank.  Banks want to lend on performing assets.  2 years is a magical number for most.  2-3 is longer that most hard money but it does give a private lender a cycle to their money that is more desirable than the long stretch.  

PL typically don't want  to be locked in for a long term because they make money on points and/or they may want to be able to react to market shifts/cycles. 

Some may prefer the long stretch though.  Especially if they can use leverage.  You can be active, and they can be passive.  All with real estate as the collateral.  

If you find 10 private lenders, you will find 10 sets of goals, criteria, and personalities.  Mesh your goals... with theirs.  

I do loans like this.  I know the example sounds made up and you haven't assumed the commissions, taxes...

Close at a title company that is attorney owned, and specializes in investor services and they will be able to generate the docs you need.  

Plan it so that both of you could die and the heirs will be able to close out the deal.  Sounds macabre, but things happen.  I call it my "struck by lightning policy". 

You can walk away from the closing table with cash for the rehab.  Make sure that Bill has accountability measures.  He can hire third party inspection.  You can be bonded for the work.  The bond would likely be cost prohibitive on a deal like you mention, but you get the point.  Plan for the train wreck. Then you won't have one. 

Ditto the previous comments.  Sounds like a bad deal.  I will add that some investor groups offer a consortium of efforts for marketing.  I am out to lunch about my likes or dislikes of it.  

Also, if you fund a marketing campaign control the leads.  Have a number that you can direct.  If you have an operator that is converting leads, then keep their phone ringing.  If they flake the turn off their leads.  Same with internet leads.  

If what you want is buy/hold, then post it in the marketplace section and the BP community will be active to support you.  You will need a Plus or Pro membership to post. 

Best of luck. 

I just sent you an email. Curious if you are dealing in bulk? singles? NPN?