All Forum Posts by: Ethan Anderson

Hi @Jing Tan, welcome to BP! 

I'm also a relatively new investor from the Bay Area looking at the Indy market. Are you looking for intros to wholesalers? 

Hi BP, I'm looking at private lending options secured by real estate. Does anyone have a referral for a TX attorney (Austin area preferred) familiar with private lending they they can share?

Lots of good questions raised so far!

@Ruth Bayang. I am mainly familiar with RealyShares. I do consider their deals regularly, but do not get the feeling that there is as much networking upside as working with a HML in my target

@Kaz M. & @Brent Coombs & @Jeff S. The HML offers an investment proposal on the specific property, and gives their assessment of valuation (as-is and ARV). The HML also has the relationship with the flipper, and will comment on their prior working relationship. I would have a note with the HML. The lien would be transferred to me for security. The HML handles any loan servicing, including default remedies. Costs related to pre-foreclosure and foreclosure are added to the borrower's payoff.

@John Thedford. I'll PM you. In general, I don't have any issue with the HML making their spread off my money, in exchange for finding the deals, taking a first pass at vetting, and servicing the loan. Assuming they can do all of those things at or above the level I could.

Several people mentioned getting a lending attorney involved. Couldn't agree more on that point!

Hey BP, I have some capital, but not much free time for active investing in real estate. I'm considering lending to Hard Money Lenders to i) put some capital to work, and ii) network with other players in my target market (flippers, GCs, attorneys, etc.) that I might work with down the line.

As someone still learning the ropes of real estate investing myself, how should I go about vetting potential Hard Money Lenders?

Thanks!

Ethan

Hi BP, I'm trying to network, or potentially work with hard money lenders (as a capital source, not as a borrower). 

Can anyone refer me to a hard money lender that operate in the Austin market? 

Best,

Ethan

I'm reading through @Brandon Turner's book on Rental Property Investing. Good stuff!

Brandon calls out that the vast majority of properties out there are terrible investments. And lists a hypothetical buying standard of, among other things, only paying up to 80% of what a property would normally be worth. He also has a section on asking "how can I?" rather than saying "I can't".

Putting it all together, I'm looking for thoughts from BP on how I can find some great rental deals on SFRs or small MFs in the Austin area, where I can buy at 80% or less of FMV.

One newbie thought I have is to work with flippers as a lender with an option to buy the rehabbed property. If flippers generally limit their buys to 70% ARV - Costs, in theory, there could be enough meat on the bone for the flipper to make a spread even if he/she sold the property to me at 80% of FMV post-rehab.

My main potential value-add at this time is capital. Consequently, I'm wondering if I can provide enough value to a flipper, through finance terms, to make that deal potentially attractive. 

Along those lines, do flippers tend to sell via an agent on the MLS post-rehab? If so, I suppose another value add would be to potentially save the flipper some sales commissions, as well as an ability to close quickly if I exercise my option to buy at 80% of FMV.

Cheers,

Ethan

@Jeremy VanDelinder, I'm not too familiar with Austin, but it looks like there are 3/2 SFRs East of I-35 around William Cannon Dr. on the MLS for ~$150k. Those might be able to meet the 1% rule, especially if there is some negotiating room on the sales price.

Hey @Abhay K., would you mind PMing me your realtor and property manager referrals? 

Hi @Kyle J., would you mind PMing me that realtor you like? 

Cheers,

Ethan

Thank you @Robbie Reutzel and @Clint Hale!