All Forum Posts by: Dominique Alexis

It is a risky thing to do but if you are disciplined and you surround yourself with experienced people to keep you out of trouble then I think it is a good idea to have the equity in the house working for you. If you lack experience doing fix and flips, consider becoming a lender? There are some reputable companies that look for private lenders to fund investor's project and they vet the investor and project and give you a rate of return of anywhere from 10-13%. I would suggest you start out with a small amount that if things go bad and you lose that money, you can continue to make the payments on the line of credit without losing sleep. Never invest money you are not prepared to lose!

I commend you for thinking of ways to build wealth! Good luck!

I would suggest putting him on ice for awhile and reach out to him periodically. As others have mentioned, seller may not be terribly motivated as of yet but time can change circumstances and you just want to be there if/when his circumstances change. I had one seller in somewhat similar circumstances contact me about a year later!

Look for referrals and do your homework. If something does not sound right, call them out on it! We fund investors doing buy and holds. Feel free to contact me for more info. Good luck!

I have seen too many people devote so much time to getting their entity set up and pay lawyer fees before they have done a deal. It is important to set up your business correctly but don't let it prevent you from getting out there and finding deals at the same time.

You can also try purchasing a list. There are sites you can search by property type and by area that will have owner information. You could find those owners in your area and market to them to find a deal.

If your buy the property with your 401k funds and then own the property free and clear and worried about paying back your 401k, just make sure your rent covers your payment back to your 401k plan?  Another option to consider is if the property is free of any liens on it which means technically it has lots of equity, then you can always get a refi through a private lender and pull some money out to cover expenses and several months of interest payments back to the private lender. This is not a long term solution but would give you a couple of years by which you could refi with a traditional bank and get much better rates and pay back your 401k and hopefully improve your cashflow from the property. We provide such refinancing on investment properties. Feel free to contact me for more info. Good luck!

Yes, the Wells Fargo and BoFAs of the world will not  be concerned with selling one or 2 homes to an individual before it is listed. They have enough money to hold out for top dollar by going through a realtor. Your best bet is with the smaller community banks who desperately need to remove those bad loans off their books. And even with the small banks it will take several calls to get to the right person but once you do and build a trusting relationship with the decision maker, they will feed you consistent deals.