All Forum Posts by: Tim Johnson

Interested to hear more about this also

@Andrew Postell

@Jay Hinrichs I am really interested to learn more about equity participation clauses - looks like you have already posted about these on BP so I will search through your history and listen to Show #222. Thanks!

@Andrew Postell Thanks for the help, makes sense to just consult a friendly lender - I'll work my network!

@Frank Y. Thank you for the examples, that is really useful info to build my familiarity with the common ranges of terms

@Casey Mericle I'll PM you!

@Tyler Beers Welcome to the RE game! 

One of the most valuable resources for me diving in was The Book on Rental Property Investing which you can find at https://www.biggerpockets.com/store. It quickly and effectively covered the whole spectrum of basic beginner questions. I also utilized the Rental Property Calculator which you can find at https://www.biggerpockets.com/real-estate-investme.... This combination gave me confidence when making my first deal and perhaps they might be useful for you too.

I also looked at doing a partnership or LLC with 2 coworkers for my first deal -- but they ended up not being as serious about the idea as I was! If you have a group of guys that are really motivated and willing to sit down and hammer out a structure that makes sense -- and each contribute some fair combination of money / effort -- I'd be interested to see how that plays out for you.

Just starting out, I think it makes sense to focus on neighborhoods / geographic areas that you are familiar with. Nothing beats the "gut feeling" of knowing if an area is a good buy or not.

@Preston Roach Welcome to BiggerPockets! One of my deals is in the Broken Arrow area. Glad to see other local investors hopping onto the forums.

Interested to see what you put together for your first buy!

Thanks @Andrew Postell - you moved my question in the right direction. I am looking to create a handful of those "pre-structured" loan templates for myself so I can quickly choose the right one, depending on what an investor is trying to do. I think I could make judgment calls more quickly and more confidently that way instead of relying on the investor to provide me with their desired terms, or trying to come up with my own terms on-the-fly.

For now, my only "pre-structured" template would be to simply copy my previous loan. It was 1 year maturity, 12% interest, secured, no points and no monthly payments -- to finance completion of rehab on a fix-and-flip. I'd feel comfortable repeating that same loan on a similar deal, but I need something in my back pocket if someone comes to me with a long-term hold... or wanting to do an unsecured deal... or needing funds for a down payment... or they offer a share of profits... etc. 

Is it as simple as adjusting the interest rate and # of points based on the perceived risk/reward level?

What are the most common ways that you structure your lending deals?

How do you adjust your deal terms if the investor wants to negotiate some large variable (like security)?

Have you ever used any creative methods of structuring a deal? (adding equity to the deal, etc)

You can ask about their previous completed deals and references.

Get active on here in the wholesaling forums: https://www.biggerpockets.com/forums/93-wholesalin...

There is an active community of Oklahoma and Tulsa-specific investors -- read their posts and ask questions!

@Adam Adams RE: "I'm in it for about 18k now and I'll be able to write it off for about 50k."  

Just curious, if you've only invested $18k how would you be able to write off $50k?

Bump... any experience out there?