All Forum Posts by: Cortney Jones

@Ron B. - easiest thing is to look at an amortization schedule, easily created at bankrate.com 

Also, if you have a balloon payment due, as an example, at the end of year 5, look at the balance of the loan on the 60th month and that will give you your balloon payment due. 

@Javier Hamlett - A coach and mentor are 2 different things.  Both are definitely worth having and worth even, as you said, "exaggerated prices" if you find the right one(s).  If someone can help you take action a year or 2 sooner than you would on your own and helps you avoid costly mistakes and errors and that person shows you multiple ways to make 6-7 figures a year, is that person worth $10-25k?  Absolutely! 

I was only buying 5-7 houses a year and happy doing it, but when I found a "exaggerated prices" coaching program my business catapulted to buying 6-8 houses a month.  Was it worth the money? Yes!  Was it expensive, Yes! And, 12+ years later knowing what I know now, I would do it all again. 

A good coach will help you get to the next level, will shorten your learning curve, and minimize risk and costly mistakes and teach you things that you will financially and freedom wise benefit you for decades. 

A mentor is more like what @Mark J. referred to.  Someone that the relationship naturally unfolds with and can help you maneuver through the waters.  The thing with mentors is that they most often don't have a financial stake in seeing you be successful.  It's more just about helping others. Also, as Mark said, you have to get out there to find those people and often it's a coach that will help you get out there to shake those trees in the first place.  

In full disclosure, I now do coaching with others, although I'm not taking on any new clients now, so this information is given with no selfish bias or desired gain.  Personally, I know it changed my business immensely.  :-) 

@Nick Messer 

A lot of people who "advertise" that they are private lenders work more like hard money lenders. You'll find a lot of them on linked in and the fees and interest that they charge are often similar or close to similar.  Some will loan up to 100% of the as-is value and rehab costs, but many will want you to have some skin in the game too. 

TRUE private lenders are usually people that you have a prior relationship with that you develop over time.  It's the old, they have to know you, like you and trust you, concept.  Many times people will say that they don't know anyone with money. I hear this every day, but when you start talking to people in the right way and thinking about the opportunity that you're offering people in the right way, you'll be surprised.   Once they see you having success, hearing about the deals you have going and how they can get involved, they may be intrigued.  

As someone who is regularly approached to lend on deals, I think it's interesting that you're worried about being scammed, because as a lender, I have the same thoughts every day when I'm approached by investors wanting to use my money on a deal.  It's a catch 22, isn't it?  I will often have an investor send me an email, without even knowing me, and telling me what they will pay and how long they will need money, etc. and I just think to myself, "Really?  You do know it's my money and I will be dictating these terms, right?"  

I guess the lesson for you in that respect is to just see both sides of it.  If someone is wiring money for $100k or more they have the full risk on their side.  

The best way to find private lenders is through relationships.  Talk to people and let them know what you do and mention that sometimes you let a few close people into your deals as a money partner.  Even with the people you're finding on LI, build relationships first.  Don't just jump straight to the #'s aspect.  Share yourself and your experience (even if you're a newbie - what other experience do you have that should make me trust you're worth turning over money too?)  

You can protect yourself from getting scammed by not sending any money up front.  Do a google search on the individual, look at their LI feed to see if there are any negative or positive comments from others who have worked with them.  Of course, at some point, they may want a credit check which will cost you a small amount, but at that time, you should have talked a few times and feel comfortable doing that.  I would have 2-3 lined  up, just in case something falls through.  Maybe a Hard Money Lender as a back up, just in case. 

Hope that all helps.  

@Arjay Vergara, Congratulations!  The transformation looks great and especially a HUGE hooyah on taking that first step.  The first one is the hardest and it sounds like you had some additional challenges with your first child on the way.  

As someone who has worked this business for 25 years and had my 13 year old involved from day 1 I can tell you that you have a great opportunity ahead of you.  You will be loving life when fast forward 6 years you can attend every sporting event, school meeting, play, etc. because of the freedom your real estate provides.  

Great job and congratulations to you both!

@Chris Eley, great job on your flip! Rehab looks great and the numbers look even better. The direct mail response rate of 1-2% is actually pretty typical for direct mail and good for our competitive market. Sounds like you spent about $3,000 in marketing to get this deal, correct? And, as you said, that's with you being conservative, which is smart. That's an excellent ROI.

As was stated, the first one is always the hardest.  I also love the laminate flooring look too.  You've taken a very smart path to finding your success.  I love seeing that.  Well done and good luck on the next one.  

@Crystal H. - i sent you a colleague request so I can send you a recommendation. When you accept, please remind me to sent you a FL lender lead. 

It's much easier to see the big picture when you're standing outside of it, right? That's always the case @BB Liu - hope you enjoy the audio. 

And, I do agree with @Chris C. - at some point, you just need to take action - sooner rather than later!   You can do that from your desk too.  I buy and sell many houses without leaving my desk. :-)

@BB Liu   So the first thing I would do in regards to those conversations is get names from other investors, Realtors, title companies, etc.  That way you already have a "warm" intro when you call and say, "Hey Bob Smith says you're the greatest roofer, etc."  Then I would say something like, I'm looking to add a new (contractor/plumber/etc.) to my team and I was told you would be someone good to speak with. I am getting estimates for some basic home repair jobs for a rehab we'll be doing soon and wonder if you can give me some general ideas on your costs and the time it would take you to complete the job(s).  Be prepared to give them some ideas of materials.  The cost difference for vinyl flooring versus marble are substantial.  

What I like to do is send a picture of a typical bathroom the way I would want it to look.  Find on any real estate listing site - zillow, redfin, etc. 

really you're just trying to get a feel for the person.  At the same time you can get some ballpark figures for what those projects will cost in your area.  I would also confirm that they are licensed, insured and bonded that way you know whether or not to use them, and ask for 3 referrals that you can call.  Calling those is also something you can do from your desk.  

When you're ready for your first rehab, you'll have an idea of where to start. 

Hope that helps and best of luck to you in getting going!  

@Jeff Minc - 

your state, "My goal is to quit my day job by building up a portfolio of cash flow property. I'd like to accomplish this within the next 5-7 years or less."

By refinancing the property you said you were going to virtually wipe out the cash flow on this property, thereby working against your ultimate goal/plan.  The reason to have business plans is to help make decision making easier.  I think you answered your own question.  If you could refinance and pull out some cash while also keeping some cash flow in this property, then it serves to move you towards your goal.  In my opinion. 

I wouldn't worry as much about the extra interest youre going to pay over the 30 years since ideally your tenants are paying that.  Plus, as you get closer to your cash flow goals, the idea would be to pay down mortgages faster therefore increasing cash flow and equity.