All Forum Posts by: Jonathan Chan
Jonathan Chan has started 30 posts and replied 130 times.
Post: Thinking of becoming a private money lender? Vet your borrower properly!!
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Erik Estrada:
Can you elaborate what you mean by communication clauses?
Weekly updates AND a requirement for the borrower or someone from the borrower's team to respond within 24 hours of being contacted.
Post: Thinking of becoming a private money lender? Vet your borrower properly!!
- Lender
- Clermont, FL
- Posts 143
- Votes 78
If you're interested in adding real estate lends as another tool in your toolbox, these are the steps I've learned you should take to vet your borrower before looking at any of their opportunities!
- Background check
- Credit check
- Past performance. Look at purchase HUDS, statement of work if it was a renovation and the sale HUD to make sure they made money on the deal.
- An organized and easy to navigate borrower's package.
- Security documents to collateralize the loan against real, tangible property.
I also like to throw in some communication clauses with consequences for ghosting.
Cheers!
Post: $130k Cash what to do?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Chad Verde:
Hi BP,
I have quite a bit of equity sitting in a rental property I own. Gathering different opinions here. What would YOU personally do with about $130k cash to invest in real estate. Just want to hear everybody's thoughts.
I would lend that 130K in short term lends at 16-20% annualized turning that money over every 6 months and use the returns to buy real estate.
Post: How Are You Using your SDIRA?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Quote from @Kaaren Hall:
@Jonathan Chan our account holders invest as lenders as well. Other ways of using SDIRAs could be to invest in syndications, performing or non-performing debt, precious metals, raw land, precious metals, mobile home parks, self-storage facilities and more. Happy to get on a call with you. ~Kaaren
Would love to connect. I'll DM you my calendly.
Post: House Hacking in appreciate area VS Out of State investment for cashflow to pay rent?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Have you looked into lending? Owning property is amazing, don't get me wrong. I'm fortunate enough to have the portfolio I have, but the headaches and R&M associated with owning property are pretty high. If your goal is cash flow, I would look into other ways. Use the purchase of rental property to offset taxes, not for cash flow. Cash flow is used to protect your investment, not live off of.
Post: New member - First time in a long time
- Lender
- Clermont, FL
- Posts 143
- Votes 78
YES, what do you want to do? Why do you want to get into real estate? What does your dream life look like 5 years from now? Work backwards from there.
Post: How Are You Using your SDIRA?
- Lender
- Clermont, FL
- Posts 143
- Votes 78
I used my Mom's to help her retire by becoming a lender on real estate projects, but curious to see how others are leveraging their SDIRA.
Post: Remote Investing from California
- Lender
- Clermont, FL
- Posts 143
- Votes 78
I used to live in the DC area and started off doing the BRRRR method in Huntsville, then Chattanooga and then Baltimore. It can be done, you just have to pick a market where you know someone or start building a team with a real estate agent who's also an investor in that market to get your foot in the door.
Post: IRA funds as down payment
- Lender
- Clermont, FL
- Posts 143
- Votes 78
Solo 401K, pull personal loan out at 50K or half the balance of the account, whichever is less. The loan has a payback period of 5 years in equal installments.
Post: seeking guidance, practical first steps for starting my real estate journey
- Lender
- Clermont, FL
- Posts 143
- Votes 78
What's your goal in this world? What is it about real estate do you like? What are your strengths? What do you enjoy doing? The easiest way to get started is to come up with a target and work backwards from there. It at least gives you a starting point and will help you eliminate a lot of things right off the bat.