All Forum Posts by: Danielle Wolter

I've got some money in a solo 401K that I'm considering investing in multifamily syndications, but I'm having a little trouble figuring out to vet syndicators. I've been approached by a couple people and have seen examples of deals, but honestly am not sure how to go about vetting the person/persons putting the deal together. I know there are a lot of people out there doing great things, I'm just not sure how to separate out the winners from the non-winners. Any advice would be appreciated! 

@Kyle Swarts What kinds of areas are these houses in?

@Anthony Brock It technically is mortgage fraud, but you'll likely not get in trouble if you had the intent to move in. I did the same sort of thing for my first property (I didn't know any better) and ended up refinancing it as a rental property to avoid any issues. But I like all my dealings to be on the up and up. 

@Henry M. For me, I don't care what the wholesaler's fee is. I only care if the deal I'm buying is a good deal. I just closed on a deal where I negotiated the wholesaler down $10K to get to the number I needed to make it a good deal for me - and that's what I based my decision on. I don't care how much he makes. But I'm also a new investor so take what I say with a grain of salt. 

@Drex Tanner So I'm on a few different lists for wholesalers and I will say most of the emails I get are junk. One blurry picture of a house, sometimes with a zip code, and an "ARV." Most of these have not taken the time to talk to me at all - they just blast out these very vague "deals." That said, I have one that is absolutely excellent. His deals are in areas I like, include many pictures, comps in the area, a list of repairs, and the communication has been spot on. I will buy deals from this wholesaler all day long (as long as they stay good). But I stay away from any wholesaler that doesn't provide the details. However, even with a great wholesaler, make sure to do your won due diligence. Never solely rely on what someone tells you - run your own numbers and get your own comps.

@Maxine Kunimura Like a few others have said, offer to pay them for a quote. If it was me, I wouldn't want to go out and give someone a quote when #1 I don't NEED the work and #2 I'm not even sure I would get the job. I will always be willing to pay a contractor a couple hundred to come give me a quote, especially on a large project where I'm not confident ballparking it myself. 

@Derrick L. In response to your 1st situation, I would start calling around to different banks. It will be more difficult to get a lower value loan, and your fees will likely be higher, but there are lenders out there who will do it. I's start with small local banks and call as many as you can find. For your second situation, I'll echo what @Natalie H. said. Just make sure you price in the cost of eviction (which seems likely) when you make an offer. I don't have much experience with seller financing myself, so I won't speak to that. 

@Matthew McNeil I paid $210K for it.

@Meshia Smith Do you not have a price that you're willing to take? I would think it would help to have a number in mind that you need for the house. 

@Deonte Ademiluyi Honestly I would keep saving your money. In theory, yes there are ways you could get a house with no money down (not easy with closing costs and such), but what will you do when something goes wrong? What happens when the tenant stops paying rent and it takes 2-3 months to evict? How will you pay for the eviction, the mortgage, rehabbing the place after the tenant destroys it? I mean these things may or may not happen, but you need to be ready for them if they do. I always have a cash reserve to make sure I can cover these things. In the meantime, I would take time to learn as much as you can (there's a wealth of info on here) and make connections with other investors in your area. Figure out ways you can offer something to these investors and learn from them. Identify your goals - what kind of real estate do you want? Why do you want it? Where do you want it? etc. etc.