All Forum Posts by: David Lilley

@Rudy Manna your LOI is your LOI. If more info is needed the listing broker will usually outline what documents should be submitted with an offer in their Offering Memorandum.

@Anthony Johnson as long as your investors have an "active" role in the business then it is a JV, not a syndication. Once you have investors that are 100% passive with no role in the business then you need to start worrying about SEC regs.

Who are your favorite contractors in the Tampa Bay area?

@Stephanie Martinson you can download a free LOI template here:

https://drive.google.com/open?...

@Larisa Jimenez You can download one here:

https://drive.google.com/open?...

@Grant Gaffney I echo Greg's advice. You're young. You have the time to spend a few years making money and learning all you can from an established real estate company. NETWORK. It will be much easier to do this when you rub elbows with other industry professionals every day. Syndicate a deal or two along the way and then decide when/if to go out on your own.

@Ronald Mejia First thing to remember, your leveraged returns will always be higher than unleveraged returns. Meaning, your ROI would be higher if you had a mortgage on the property.

Second, if you lived in that home for 2 of the last 5 years you can sell and up to $500,000 of the profit will be tax-free. No need to 1031.

@Stephanie Martinson verbal commitments don't mean much especially if this is your first deal. You can go under contract and hope to raise the remainder of the capital needed before the expiration of your due diligence period, but if you back out, you have already tarnished your reputation as a buyer. 

Sellers and brokers choose a buyer they believe will close. It is a small world and your reputation for closing will follow you. This really comes into play for competitive deals. 

10% IRR is on the low side. Hopefully your underwriting is conservative. Increasing your loan proceeds might help with this.

Depending on the amount the rehab, you could use a bridge loan. These usually cover your renovation budget 100%.

Anymore questions feel free to PM me.

@Matthew Rayl the VA statement is accurate.

"repaid the prior VA loan in full".

If you refinance your VA loan into a conventional loan, then your VA loan has been paid in full.

@Matthew Rayl I've done it.

Google VA entitlement restoration and you should be able to find it.