All Forum Posts by: Jackson Maia

 --------------------------------------------

Here is what happens the Borrower make a good presentation pitch, he never touches the money it is violation of SEC because the money is not yet secured. He will get the Private lenders to open a self direct IRA account and have the money ready to be sent to a closing table to close on a property. At the closing table there will be a corporation which was structured to handle the profits dispersion in percentages. Lets say the Borrower tells the private lender to send 100k to the closing table and agreed to receive 6% within a year, then the contract will stipulate that when the property is sold and profits are made the 100k + 6% interest will be sent to the Private lender's IRA account which is rolled into a Roth IRA which is Tax free and the other 4% or whatever spread will go to the guy who pitched the lender and made the agreement for the 6%, meanwhile he has other agreements between the other partners which stipulates that this 100k is being lent at a 10% interest and when the money are divided he gets his 4% passive income. It all becomes much more lucrative when you get several lenders to use for commercial investments instead of residential. Its all legit but be careful not to violate ant SEC laws or any other laws which govern your specific state.

I've ran the numbers you've posted and normally sellers tend to inflate their numbers to make the property they selling look better that's why you need see the actual numbers. The price sellers want to sell is retail but you must only buy wholesale as I call it. 3,400,000 according to the numbers by seller is a fair price but when you've showed the other numbers as in 21k NOI them the price went down to 611k purchase price as I divided the NOI by the area cap rate. Commercial properties are worth the amount of income it produces that's why you must see real numbers in order to make an informed decision.

Look at the real rent roll and expense reports. For that you may need to Sign a confidentiality agreement Then you will get your NOI them divide the yearly NOI by the local area average cap rate that your broker will be able to provide to you and that's the Max you should offer for a commercial property. Another thing is that through your diligence as in walking through the property and unit you will find repairs that needs be done then you will need to renegotiate your offer to fit the repairs and other discrepancies costs on the property.

I've read the ABC of real estate is a great book. I've learned to analyze commercial deals on that book but doesn't teach you how to go about and get financing and to refinance banks only do 75% LTV. If I'm going to buy and upgrade an apartment to force appreciation it is a different venue but maybe I should be flexible until I reach my goals. Great deal maybe a business plan will help open some doors. Thanks for The advice.

Hey thanks a Mr. Burke and I hope never to wear that orange jumpsuit. 

The problem with crowdfunding is that they require the borrower to be an accredited investor. That means you need to bring in over 200k profits yearly or 1 million net worth. I don't do neither.

Hello folks,

           I've been going after my dream which is to own and operate an apartment complex. I know a few things about analyzing a commercial property value by the income it produces. My difficulties are in finding Investors whiling to go into the deal. It will make money but it is a buy and hold process which is the hings they don't want to do. Please help with your knowledge and experience thank you. 

I've been searching and searching for the SEC form name I must file to register as a Solicitor for private lenders in the state of Texas... Please if anybody knows this information feel free to share. Thank you.