All Forum Posts by: Jason Taken
Jason Taken has started 56 posts and replied 380 times.
Post: How to Structure a Private Loan to My Son for a Fix and Flip
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Harold Albertson:
I am considering funding a deal that my son is looking into. It is a cash only as is fix and flip. He has about half the cash needed and I would be loaning the other half through an LLC that I have with my brother. My question is how to structure the loan. Is 10% a fair rate for a personal loan and would you charge any points? The time period should be 3 months but could stretch to 6 months. Would you put a lean on the property?
Depends on how fuzzy you want the business/family line to be.
The only thing I'd be absolutely sure of is that your money has more tangible security than being a "personal loan" EVEN IF you cut him a break on cost.
Post: Just Starting Out in Mortgage Brokering - Advice you wish you got when you started
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Jackson Ebersole:
Hi Everyone!
It's nice to e-meet you and I hope this message finds you well. I'm reaching out to seek advice and guidance as I embark on my journey into the world of private lending. My partner and I just started, created the LLC, got all the documents, and have begun introductions with lenders across the market.
I'm eager to learn from your experiences and gain insights into how to get started, pitfalls to avoid, and strategies for success.
Specifically, I'm interested in hearing about:
- Getting Started: What steps did you take when starting out as a private lender? Any resources or recommendations for someone new to the industry?
- Lessons Learned: Looking back, are there any lessons you wish you had learned earlier in your private lending career? Any mistakes to avoid?
- Building Reputation: How did you go about getting your name out there and establishing credibility as a private lender? Any marketing or networking tips?
- Clubs and Associations: Are there any clubs, associations, or networking groups that you found particularly valuable for connecting with potential borrowers and other industry professionals?
- Deal Generation: What strategies have you found most effective for generating deals and identifying promising investment opportunities?
I'm eager to hear your perspectives and learn from your experiences. Your insights will be invaluable.
Thank you in advance for your time and wisdom.
Kind Regards,
Jackson
We've been brokering for the last 5 years and are now direct lenders. If you want some help along the way - just reach out. Happy to give free advice/training if you want to use our platform to learn.
Post: Need a hard money lender
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Kanwar Sodhi:
I’ve got a buyer who sitting on a good deal valued at $2M and under contract for $1.1M with $100K in.
Hard Money Lender backed last minute for no reason given. My buyer has plenty of collateral.
Any hard money lenders that can underwrite and fund this in 48 hours?
Location: Maryland.
Please reach out asap.
Thank you
How much cash was the borrower putting down?
Post: Lender Fees and Financing, is this a good option?
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Baltazar Nunez:
A real estate agent, and I am trying to help my client decide whether he should finance or not.
I have a a summary of financing fees and charges for this deal. These will be a $85,000 distressed property with a $102,000 Rehabbing cost and they after repair value would be $255,000.
the financing fees, my client is thinking that he might be better off paying cash for everything instead of financing, but he’s thinking he should do it just for the learning and to allow his company to build credit
from my perspective I just would like to know if these fees are right on point or if they are expensive. let me know your thoughts thank you in advance.
There really isn't enough context here to determine whether this is "high." Many will say it is, but what we're not seeing is the collateral, credit, character, or experience of the borrower. Most will probably say its high without knowing what other variables are at play here though.
Post: Putting property in LLC
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Nathan Becker:
Hi Bigger Pockets community.
I am purchasing my first rental property (a duplex in Nashville) with my brother. I am currently house hacking a property and planning on moving out and renting out completely. I am curious if I should be talking with a lawyer about putting one or both of them in an LLC? I believe there is a fee to operate a business in Tennessee but would it be worth it to protect myself?
If you know or have been here before I'd love to hear your thoughts.
Cheers,
Nate
People choose LLCs for liability protection in the event something happens on the premises. You should most certainly speak to a local lawyer about the details that pertain to you.
If an LLC isn't the right move for you at the moment though --- having a robust insurance policy will be another, and very important, means of protection for owning rental properties. And you need to make sure they are CORRECTLY insured as well. Speak to a solid insurance agent to ensure they're aware of what the policy needs to cover for you.
Post: Looking for an investment partner for a new build in western Chicago suburbs
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Michelle Simoni:
New build and sell project in Chicago western suburbs, need equity partners anybody interested or know where I can find them?
I am an architectural associate and will be cranking out drawings to hit the ground running with a fast permit. Already in conversations with the city. I have 3 contractors ready to bid the project! All is in the works just need that capital. Who wants to be my partner?
We've got a bunch of local builder clients. Would be happy to make a connection even just for the networking aspect.
Post: The BRRRR Method
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Christian Terrones:
Any BRRRR mentors in Houston Tx
Do you have particular questions or aspects of BRRRR you're looking at?
Post: Multi-family 2-4 unit insurance companies
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Chad Reynoso:
Hello fellow landlords and investors. I have a 4 unit building in Long Beach CA and looking for alternative rental property insurance companies. I may be parting ways with my current provider. What insurance companies are you guys using in Long Beach and Los Angeles county properties that you have been pleased with.
Kris over at Anderson Agency is who we use on all of our deals.
Post: Tap in on a rental for its equity as down payment along with DSCR Loan
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Jennifer Van de leur:
Good afternoon, I am hoping to put down as little as I can for a quadplex. I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan. Is it possible? I would hate to refinance my duplex and lose the 4 percent interest on conventional loan. Is there any other way to use its equity, without creating HELOC/LOC? My duplex is in Virginia and the 4plex is in Pennsylvania, if that matters..
TIA!
You only really have a couple of options.
HELOC/LOC with the property as security.
Refinance the first and walk away with a bigger first.
A great way to get into properties with little money down though is to buy distressed assets at a discount, force appreciate them, and refinance to pull the cash out. We're funding deals with as little as title costs/insurance to close for experienced borrowers.
Post: Under Contract - Finance options on a 4-plex
- Lender
- Chicago, IL
- Posts 412
- Votes 142
Quote from @Hitanshu Shah:
Hi All
We are under contract on a 4-plex and I am shopping for Loan options. The purchase price is $415 K and we can put 20% to 25% down. Few brokers have recommended a 5 year Balloon loan but I want to explore the best option available in the market currently.
Thanks
Is this non-owner occupied or owner occupied?