All Forum Posts by: Account Closed

Cody Koetter My rehabber dealt with this exact issue. The neighbor wanted the house at a discount and was able to get the house to fall out of escrow twice. He hired an attorney and the attorney was able to get the neighbor to cease and desist. The house entered escrow the third time and sold. Good luck

Minh Le Everything you say is spot on! If you ever make it to Los Angeles Id love to take you to lunch. The best part of this post is how generous you are with your time and willingness to help out others. To your continued success!!!

Lee Schram I am a private money lender in Los Angeles. The rehabbers I work with I have PERSONALLY known for a long time. I've checked out thier properties got a feel for thier ethics and thier business savvy. If they shared my info with others especially on the internet i would probably not work with them ever again. Why? I would view it as a violation of trust and my privacy. Rehabbers keep their pm contacts close to thier sleeve. If I'm funding other deals I may run out of money to fund thier deals. And I charge 13% plus a point on debt financing. I get more if I'm doing a jv. It's my hard earned money and I intend to get compensated fairly. As Mike H said if you're serious get a loan from a hml that's what they are in the business to do loan short term money. Good luck

@michelle 

@Michelle Mapp

First of all welcome to bp!  Just know your question will inundated you with turn key marketers telling you to invest out of state so get ready.

To answer your question let me start by saying I don't own rentals I invest in rehabs so take my opinion as just an opinion. However I know quite a few investors and they do all of the above. Put a larger down payment, market to sellers via yellow letters, partner with others to buy bigger (more profitable) buildings.  

Good for you for running the numbers and starting to take action.  There's a wealth of knowledge on bp and plenty of people willing to help.

Good luck

Alex Vidal It's obvious some posters are desperate to get thier hands on other people's money for thier own financial gain. Over 300k and a new investor? Easy target. Let me throw out magical numbers and hopefully I can reel him in. Max Maloney if someone is all over you like a cheap suit run away!!

Alex Vidal It's obvious some posters are desperate to get thier hands on other people's money for thier own financial gain. Over 300k and a new investor? Easy target. Let me throw out magical numbers and hopefully I can reel him in. Max Maloney if someone is all over you like a cheap suit run away!!

Allan Rosenberg I personally don't work with brokers because our interests are not aligned. The broker gets a commission for putting the deal together whether or not it's good. As for starting out I suggest you start networking to meet rehabbers. Look at thier previous flips get try to find out if they're ethical. Find a good real estate attorney who can guide you on the promissory note and deed of trust. Jay Hinrichs may be able to guide you further

Liz Sickinger I work with a rehabber that targets homes that can't get financing. Foundation mold asbestos etc. he's lowered the bidding pool to only investors that can pay cash so less competition for him. He makes sure he buys for a price that more than compensates him for his time and makes a healthy profit. Remember the seller has limited options as to who they can sell to. They either need to fix the problem or sell to cash buyer -at a discount! As for selling the house the last house he sold had over 20 offers week 1

@Kevin Yoo

I'm curios is the 36% debt or jv? Private me if you're not comfortable answering on the forum.

@David H

I personally would pass on this deal but keep in mind it's my OPINION nothing more.  Here's why.  The return on this is not enough for the risk.  The reason why I involve myself in bigger deals is because they are more lucrative not less.  Here's some numbers to compare. A low end condo I lend on in Santa Ana pp 150k.  My rate of return (debt) 13% plus 1 point.  Loan amount 130k.  My money is out within the year.  I don't like to park my money.  High end deal. Pp 850k.  Loan amount 130k.  EJV.  Sale price 1.250MM.  My profit 35.5k.  Total time 5 months.  Number of partners 4 (including rehabber).  

You also mentioned this is going to take up most of your savings which again makes me uncomfortable.  The only advantage I assume in this deal is there may be tax advantages but again I don't know.

Perhaps you could elaborate more on the exit strategy and experience of the team and others can weigh in.

Good luck