All Forum Posts by: Darren Eady

Never ever ever lend in 2nd position on a rehab project. Even if they had done this many times, your money would still be greatly at risk, but given this is their first flip, I would bet your money is lost the minute you wire it! Their intentions may be great, but the costs will be higher than they think, they'll work with less than reputable contractors who will not perform as promised and the ARV may not be what they think because they do not know how to value the market properly themselves.

I've been down this road and it sucks!  I definitely wouldn't go down it again!

If you would like to connect through BP I can share some more of my investment history to see if could help you with your new ventures.

You would probably do the best to start in performing mortgage notes where you act as the bank.  You can receive $1000 a month with your $100k and you'll have no toilets, tenants or trouble with properties.  I've done both properties and notes for years and years and am investing in notes now.  I'd be happy to talk more through BP.

You are very correct!  I can't keep them on my shelves!

I am constantly working with Australians: www.secureprivatefunding.com

It would be better to talk to people around you and ask them who did their last loan and if they were impressed.  The best mortgage guys will work by referral only!

If the borrower is living in the home, you may have much more trouble evicting, regardless of the land trust ownership.  I would check with a real estate attorney in your area to see if the rules change in buying an owner occupied note and either evicting the occupant and taking over the property.

Hey Chris.  I've been creating and selling mortgage notes for years.  I would be happy to spend some more time answering your questions if you want to contact me through BP.

If you could get two properties with the same $67k and the ROI was better than the note you hold, then you may want to do that. Your thinking is sound. But, what if there are tenant issues, maintenance that you don't expect, a property manager that takes off with your money? Holding a note may not produce the same monthly return as property, but it is typically much more consistent. Would you rather have an ROI of 12% that you know is coming or 15% that may turn out to be -5% or 35% - it depends on your preference as an investor.

The notes I invest in pay 12% consistently.  I think you will do much better with your rate of your return than 8.5%.  Talk to you soon.

I'd be happy to speak with you about it.

You're going to need 20% down minimum for any lender, conventional, private or hard money.  Typically you should go with bank financing if at all possible.  Traditional financing is your end goal anyway.  Good luck!

If you can get the terms you described, you should take that money all day long.  Hard money and most private money is much more expensive that 5-7%.  Keep your equity line available for the next deal!