All Forum Posts by: John O'Leary

@Jesse Holsapple thanks for the response. We ended up getting it funded. 

Find out what his immediate cash needs are and see if you can take it over Sub 2 or see if he would be willing to seller finance a portion if not all of your put of pocket so you can get into the deal with no money down.

If the investor is using a HML, offering a second position may be challenging as most lenders prefer to be the sole lien holders. For example, say the investor is requesting funds for a rehab draw and they utilized a GAP loan. This could potentially lead to complications such as frozen funds when mechanics liens are searched and they see the 2nd lien. However, if you're open to a silent second position via a promissory note, it may be feasible.

Determining whether to invest as an individual or entity is a question best addressed by your attorney and CPA. In my experience offering GAP loans, I typically charged between 12-15% interest and 3 points due to the loan size. Bridge loan rates have ranged from 8-12% depending on market conditions and the cost of capital.

Check out Colleen Pacheco with Secured Insurance Group in Orlando area. She handles everything in FL for us. 

Most lenders here on BP will do value add loans on 1-4 units. A one year bridge loan will get you between 80-90% of the purchase price + 100% of the rehab not to exceed 75% of ARV. Once rehabbed you can refinance into a traditional loan or look at a DSCR loan.

DSCR loans require 20% down on purchases. There are options at 15% but they come with a much higher rate.

@Dan Kim Yes, call them and start to establish a relationship. The dispo agent has contact info on there. You want to see the deals they get and move before they go to those platforms. 

I often notice similar posts in this forum from new wholesalers seeking guidance. Here are a few things to consider..

1. Work for an Established Wholesaler: Consider finding a reputable wholesaler in your local market and offering to work for them. Commit to dedicating 12-24 months of your time to learn the ins and outs of the business. By demonstrating your commitment and dedication, you position yourself to receive valuable mentorship and investment from seasoned wholesalers.
2. Pay to Skip the line (Masterminds) : Treat your wholesaling business like a trip to Disney. Instead of spending all day waiting in line for a few rides, pay to to 'skip the line' . This means paying a little extra upfront to access comprehensive databases of potential buyers and sellers, sales skills, contracts, etc allowing you to expand your reach and efficiency significantly. The network in these groups is whats invaluable. 
3. Joint Venture (JV) or Partner with Established Professionals: Consider forming joint ventures or partnerships with experienced wholesalers or real estate investors. Collaborative partnerships often lead to exponential growth ('partnerships equal rocketships'). By leveraging the expertise and network of established professionals, you can condense time to accelerate your learning curve and access more lucrative opportunities. To do this present your opportunity with all the details for assessment. 

You can use software to identify and skip trace cash buyers. Consider using the reverse wholesale method, where you connect with buyers at local REIAs and meetups to understand their specific property preferences and then market deals tailored to their needs. Additionally, consider sharing the cost of investorlift with others in similar situations to optimize resources.

Partner with a lender. If you have actual deals lenders talk to investors everyday looking to get pre approved. Make sure the lender you work with finances assignment fee's and understand wholesale transactions, they have your buyers. Facebook groups is how you get your deals snatched.