All Forum Posts by: Dave Van Horn

Hi @Keith Wilson

The MLS is the best answer.

REORedbook.com will give you access to REO agents.

There are also threads on here about investors using Auction.com (although I've never used it)

And don't forget about about the BiggerPockets Marketplace.

Best of luck,

Dave

Sure thing @Li Zhang!

And I'm sorry to have missed it! @Steve Babiak

We've been busy putting together our own event for this weekend but I do think I'll definitely be at some upcoming DIG meetings in the future.

@Michelle Robbins

Since we take title to all of the notes in our portfolio, we don't broker here or internationally, but we have sold to plenty of foreign investors.

We've found it best to require international investors to have either a U.S. Entity or an account with a U.S. Bank (which does their own vetting) to comply with anti-money laundering laws, CFPB requirements, Fair Debt Collections, and Gramm-Leach-Bliley regulations.

If you decided to go this route, I would consult with an attorney since there's a lot of compliance involved. You may find it easier/safer to just form an entity and raise capital from foreign investors to purchase notes that you place with a licensed servicer.

Best of luck,

Dave

@Scott R.

You may want to try to get a 2nd mortgage to cover the construction costs but it may be tough if there's no equity.

In the future with a handyman special, you may want to consider getting Hard Money or Private money to finance everything from the get go (including the cost of the house, construction costs, closing costs, etc). 

Best,

Dave

Hi @Li Zhang,

I would recommend checking out our local REIA group, DIG (or Diversified Investor Group).

They have a main meeting in Ambler, PA but they also have subgroups all over the South Eastern PA area (including the Chester County subgroup in West Chester).

It's a great way to meet other investors/brokers/wholesalers/etc and learn about a slew of different Real Estate investing strategies - which will help in making a decision in terms of what area to focus on and what's best for you. It's actually where I gained a large amount of my investing knowledge, especially early on in my career. And I still go to meetings and learn things/meet new people all the time!

Hope this info helps and hope to see you at a future event!

Best,

Dave

P.S.

If you have 500K to play around with and not a lot of time, sounds like you'd be more of a passive investor. So you may be more interested in Hard or Private Money Lending side of Real Estate or Note Investing. Best of luck! Feel free to PM me if you ever have any questions.

I would recommend Jim Bennett at Stonehedge Funding or Joe Dixon at Dixon Funding.

You could also find plenty of Hard Money Lenders for your area at a local DIG meeting.

A lot of great info above.

@Lue C. Personally with my SDIRA, I currently invest in notes, shares of companies, and I even co-own a stock fund that day trades. I also do hard money/private money as well.

I love my IRA but I also think you don't have limit yourself with just these types of accounts, there are other comparable vehicles to consider (many times with fewer rules) such as insurance contracts for example.

Best,

Dave

I've had almost all of the above over the years but the worst I heard of was a buddy of mine was renting out a garage to a tenant. It was one of those cash deals, $60/month, nothing serious. 

Well, needless to say, my friend has screened everyone since and put in place some safeguards in regards to accountability because the tenant loaded up the entire garage with asbestos. Literally cost thousands of dollars to clean it out. I'm talking floor to ceiling, full of what is essentially toxic waste. At the time I think it was at least $200-$300 per trashbag worth of asbestos to take out to the dump.

I also had an interesting spin on the car engine story. I once had a tenant take apart their whole engine in the front yard, pieces everywhere. The thing was...he couldn't figure out how to put it back together! Also it was dead of winter at the time, just to give you an idea how smart that guy is.

@Lydia Lee

I would suggest trying to sell these properties to other Real Estate investors, offering favorable terms while you carry a 2nd mortgage. So for example, you could a propose to an investor one of your properties with terms such as 100% financing (to avoid a Realtor fee) and then carry a 2nd mortgage (usually interest only for 5 years, so they would still cashflow) for the down payment and any remaining closing costs. 

So if it's a $100K property, and they get a $80K 1st mortgage and you hold a 2nd for $20K to $25K (just be sure to record your 2nd after closing). So in this scenario, they essentially get 100% financing which would make them much more incline to take the property as-is with the tenants.

And if they say it needs too much work, you could offer the investor-buyer a repair credit.

Best of luck,

Dave

@Tony Wu

You're right, you would be taking a lot more of the risk than your potential partner in this scenario so my question is: Why give up any ownership when it sounds like all you need is a general contractor and maybe some capital (i.e. private or hard money)?

Speaking from experience, partnerships are tough. The roles, responsibilities, and compensation need to be clearly defined right from the outset.

Best,

Dave