All Forum Posts by: Dustin Frank

I am trying to obtain an equity position in a flip but do not currently have capital to throw at a deal. How can I make myself more valuable?

I am currently a licensed agent out of Denver and am curious what kind of value it would add if I applied my closing commissions towards a fix n flip deal. I know how expensive financing is and I would be contributing "about" 2.8% of purchase price and "about" 2.8% of closing price. Is 5.4% enough skin in the game? Have any of you ever done a deal like this? and if so, how did it work out? I would love to hear your thoughts and opinions as well.

I agree with Matt...find an agent who has skin in the game, property management experience, or at least has a solid history of repeat client investors.

"Thanks for the details, Dustin. So there is a specific hard money type of contract that is used with the seller. Is this something I would obtain from the hard money lender or would this be done through a realtor?"....... In Colorado there is A section of the contract where you check mark where your money is coming from... instead of selecting FHA, VA, Conventional etc. You select the box that says "other" and then write "hard money loan"......A real estate agent should be able to do all of it for you.

If you go under contract and cannot close you will look like an ***. I may be wrong but this is what keeps me from putting deals under contract in my name. I currently don't have the cash to purchase these deals in the event I could not find a buyer in time.

Every deal will be slightly different depending on risk/reward and overall relationship with your lender. My last client used hard money and it looked something like this Client decided to make an offer and offer was accepted/ it was stated in the contract that he would be using a hard money loan. Hard money lender lended him 85% of the purchase price for 6 months.. for this they charged 2 points "2%" of the loan amount. after 60 days they would start charging additional interest on the money still owed"something like .33 or .5 percent every month" With no prepayment penalty In addition to the purchase price they loaned him 100% of the funds needed to fix up the property up at 11% interest I may have left out some of the finer details but this was his loan in a nutshell.

I think if your trying to brand yourself "work with me, I'm caring and understanding and will work side by side with you to accomplish your goals," etc , then a face on your card is almost like the first introduction. I'm personally more fitted to "hey you don't know me, I wouldn't expect you to trust me, but I would like to work with you, ...please take a look at these numbers and let's see if we can make a deal that benefits both of us.".....if I knew I was good looking I would definitely put it on my cards though.

Disclose, disclose, disclose,......"I'm gonna market this house to one of my investors and bring you every cash offer presented"....in the end THEY are the ones who decide to do or not do the deal with you..just always keep your word.

As far as "any agent willing to work for an hourly rate is inexperienced or unsuccessful." Very true...But success is measured in different ways..I may be new, broke, and what some people consider unsuccessful "got my license in March" but my first investor I found a few weeks ago is going to make $10,000 in less than 40 days from my first deal ever....even Warren Buffet had to start at the bottom.

......their are deals to be had in every market. People die, divorces happen, kids from another state inherit property they don't care about, people have time limits on their 1031 exchanges, people win the lottery, etc....I would call every agent you can find and say "hey, I'm ready to buy x....if you find x or anything similar to x...I'm ready to pull the trigger"