All Forum Posts by: Darrin Carey

@Lydia R.
Well said overall. 

On a side note J Norton is my personal sh** list. He took a blog post I wrote, then read it almost verbatim and recorded it as a video and posted it as his own content. 

@Marc Maitre
Glad to hear you're out there busting your A**. Ten years ago I was flat broke and had to have a garage sale to get enough cash for bandit signs and gas money to get the wholesaling rolling. We did that until we had enough cash for a down payment on a flip, and then did both non-stop for the next five years. We added in rentals once we had enough cash to do that. Over 200 deals, maybe 5 of them I was able to do with little cash out of my pocket. A couple of those only after I had developed a track record with that private lender.

From a lender perspective, adding in a different property you already own with equity can count for skin in game. I'll consider other things too. One person was going to put up a classic car, at least until his property inspection killed the deal.

As a lender, we look for skin in the game and cash reserves for a couple reasons. First, it motivates the borrower to do well and solve problems when they happen instead of walking away. Second if something goes wrong, and we have to take the property back, there are costs to pay for, and then the cost of dealing with the property when it comes back. If there's no skin in the game, that all goes to the loss column. It's not just the final ARV ratios that matter. We're also considering what happens if you get run over by a dump truck the first day of rehab, and the property has to be foreclosed on in its purchased condition.

And you're right, a lot of us ground it out day-by-day to get where we are. The lessons learned, experiences, deals done, and more shape our expectations of potential borrowers.

Marc, I'll be happy to work with you when you are ready. Chat with me at the COREE meeting. 

Jay,

We do transactional funding too, no problems there.
One thing I had not considered was the much higher transaction price on the coasts; that certainly changes the dollar amounts involved. 

In our area,
- a down payment for 25% of the purchase price is often only 20-50k, 100k at most.
- Earnest money is often only $500-$1,000, and the seller has to agree to release the earnest money if the deal doesn't close for any reason.
- Closing costs are pretty low too, just due to transaction size. 

At least you're sophisticated enough to know it's high risk and you're taking the majority of it if something goes wrong. I'm starting to hear stories like the newbie lender who put up 250k+ for the down payment for a newbies LA deal, and now they're SOL.

A repeat business with a good track record should have no problem with having some skin in the game. If they don't have that ability, it makes me wonder how good their business really is, and what'll happen at the first hiccup.

You can just show up, there's no registration required. Feel free to reach out to me ahead of time with any questions on the meetup or Dayton investing in general.
Hope to meet you there.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

The people hitting me up lately have been broke. The last one had a total of 67 cents to their name, and wanted a hard money loan over 7 figures.

You're in a much better position, as you have most of the funds needed and 3 properties. If the SFH have some decent equity, bringing in the shortfall could be a reasonable risk for a private lender. The lender may ask for a piece of the equity or cashflow in addition to the interest rate to compensate for the additional risk if the deal is thin.

You could also look for a JV partner to bring in the extra cash, but be careful with that. There's a whole different set of risks with partners.

I'll assume the Instragram swindlers are similar to the one YouTube and FB.

Darrin