All Forum Posts by: Jeff Greenberg

I let people know about an opportunity that I have.  There is a lot of money, that is sitting around and earning a low interest rate, or nothing at all.  Fiscally smart people, spend more time trying to get their money to work for them, then they spent earning that money.  Way before you have a deal, let people know what the plan is.  Create a list of those that express interest and let them know when you have the deal.

I would also add that you need to get educated as to what you can and cannot do as far as the SEC is concerned.  When does your deal become a security?  Ignorance of the law does not get you a free pass.

@Account Closed if the sponsor is using The Reg D rule 506 b exemption they can accept Sophisticated investors. They do not need to be accredited. We still use this exemption as many of my friends have not made it to there yet. This rule does prevent us from advertising a deal or using what is called General Solicitation. I have had to stop people at my REI club, from announcing a deal because of this.

Make you check the fees based on what you are going to be doing with the funds.  A custodian that charges for every transaction might not be the best choice for a flipper that has a lot of transactions.  It may not matter to an investor investing in a syndication, with a one time transaction.

We use $250 per door for the general admin category which includes legal, accounting, office supplies, etc.

I like IRA services

You said "formerly ghetto" is it on the upswing.  Will you feel safe there?  As you mentioned, what type of tenant will you be able to attract?  If you are not comfortable with the answers, I think that you know the answer to your question.

If they are supposed to be cash buyers, they should be able to provide POF. Even with that said, POF's are not hard to get. It doesn't mean that they will close.

Whether or not the PM takes care of it is up to you.  The debt on that property was a private capital group.  The repairs that they required were going to be done anyway.  It just would have been nice not to have had to come up with the money twice and then ask for it to be reimbursed.

Good luck on finding a deal

Well as you know, it depends!  The main thing is, don't wait until you close to figure it out.  It is very difficult to answer this plain vanilla question.  The deals that we have done, the PM ran the show with us approving the budget and bids.  We had vacancies and we started there.  If I didn't have vacancies I would probably start raising rents to get some tenants to move. Don't do all at once and scare them all out. I do know someone that did that, and lost 100% of the tenants.  She rehabbed them all and filled it back up.  If you enjoy sleepless nights, that might be a way to go.

As far as lenders, that depends also.  On one deal I had a lender require it be done in 6 months.  Here is the fun part.  So the lender required about 60k of repairs to be done.  So they held back the 60k from the loan we were given.  Then we had to come up with 60k to do the repairs(we expected to be able to use the the loan proceeds), and then afterward, have to wait for them to release the funds.  Be prepared with extra money.

It is for this exact reason that I have just instructed my closing agent not to include my attorney in any emails going back and forth during the close. I will determine what emails goes to my attorney and needs his feedback or review.  On the other hand, I have used lawyers for a transaction, with a flat fee.  That typically is a better way to go.

You should make sure that you are clear on what is billable and what is not, before you engage the attorney.