All Forum Posts by: Jerome C Brown

As a wholesaler ideally you should have a dozen buyers or more "in your back pocket" when you're searching for deals.

If you get a deal under contract where the numbers actually work, you'll probably be able to scramble and dig up a buyer before the end of your due diligence window, but that type of uncertainty can be stressful.

Start building your buyers list now. Learn what those buyers are looking for. Keep an organized list. And follow up with those buyers often to confirm they are still actively pursuing deals.

Thank you for this, I have had the same problem i got alot of contracts but it has become stressful, so i am going to take this advice

It seems to start slow, but then it jumps quickly. I bought my first investment in 2016. In 2017, I bought a second and third, By the end of 2021, I had 33 rentals and 135 storage units and I was wondering how it got there so quickly!

 I really appreciate that i sometimes i try to rush success, and i needed to read this

@Jerome C Brown CAUTION CAUTION CAUTION!!

I absolutely agree with @Scott E.. You must be organized, and you should absolutely know what documents to present them.  If not, you're not ready to discuss them investing in your projects.  Also, you must run all of this by an attorney, you could be walking a dangerously think line with the SEC.  Also, I want to ask if the individuals who are INVESTING in your project, are in the business of making loans?  That is the definition of a "Private Lender".  Too many times here on BP, the term "Private Lender" is thrown around too loosely.  A Private lender knows how to process (gather the requested documents from the borrower) how to underwrite (protect their investment, ie the loan, through internal analysis and guidelines), and most importantly how to mitigate the risks.  It sounds, based on your description, that the individuals who are investing in your project, are not in the business of making loans, but rather they are willing to invest in your project based on trust in you, is that an accurate statement?  If so then call them private money, not private lenders.  If they are private money then EXTRA care should be taken to ensure they are protected, meaning ethically, you should look at your project and all potential points of failure and insulate them from loss, ie you assume the exposure to risk.  Also HOW you are raising your capital from these money sources is just as important.  If they are investing in your project based solely on trust in you, and if the project goes sideways, and they hire an attorney to come after you, the first thing their attorney will look into is were they sophisticated enough to make a decision on their investment and did you follow the SEC guidelines in raising capital, especially if you have more than one person investing.  You should take care to ensure that the investor lending you capital is secured via a mortgage/ deed of trust.  I deal in this world all the time, if you have specific questions please reach out, happy to discuss, and provide some feedback/guidance.  Best wishes and much success, be sure to do it legally and always in the best interest of your capital investors.

@Jerome C Brown, I am assuming you are talking about a private individual(s) lending you money for an purchase and rehab?

If that is the case, one of the beautiful things of working with private money lenders is you can create the rules. There is not official or formal document or process you have to follow, it’s whatever works for you and the lender.

I like to be as detailed and complete as I possibly can. I actually have a standard packet that I like to put together for each project.

If you are interested in seeing that, I am happy to share it. Reach out, connect, and DM me

@Jerome C Brown  You can also consider a few reputable personal loan lenders, for those amounts.  I've recently used Sofi lending for a $50k personal loan, smooth application process and one day approval.  Funds in my checking account the next business day after that.  Best part, no fees at all, and no-prepay penalty!  I used them for a few months at 1% interest per month (12% annual), so only paid about $1500 in interest for the use of the money.

Discover personal loans also offered similar terms, but only to $35k.

Not sure on their minimum credit scores, but I found them straight forward and easy to work with.

That is pretty standard from the Hard Money Lenders I have contacted. I would try a private lender, they would be more willing to loan on smaller amounts.