All Forum Posts by: Barry Ratliff

I've been getting emails from a couple lenders promoting this program but my local lenders don't know anything about it. Has anyone closed a .5% down deals and what lender?

Chelsea, the cities you mentioned in your last post are all good. Your 're just another fish in those ponds though unless you can get the properties before seasoned investors get them. You might try even further out if unsuccessful to be a bigger fish in yur pond. No matter though. Just do your homework to know the pocket areas and make some offers. If you need an agent to for mls properties or need comps, let me know. I have brokers there.

Personally I would not do the deal only because they are 1br units. Your searching a small amount of people in the marketplace who lease 1 bedrooms. I recommend 2 br units as minimum. Lastly, if you rehabbing yourself to keep or flip vs wholesaling, I would have about 10-15% contingency in your estimate for the unknown items that pop up during rehab. Maybe add city permits if rehabbing.

Steven, for purposes of financing opportunities, banks tend to way heavy on financing to incorporated entities because of cutting out most liability to individual that is requesting financing or credit. That way you personally are not liable if company has negative legal issues that may arise. Now the bank and other creditors you are using may want you to personal guarantee the loan or credit of the entity. By doing this the creditors use your networth and credit to still hold you financially liable for that credit and not all others you may have elsewhere.

So if are operating as sole proprietor, banks feel you are a high risk exposing you and your personal assets that they are considering when giving you credit. But with an entity, your company is only exposed.

Lastly, set up entity early and throw purchases or assets in the entity to build its networth. Regarding partnerships, I wouldn't do it unless you define each others role(you being managing partner) and profits split after all expenses. But even that can be misleading sometimes. Now its a good idea to create entity for each project. That way there is a beginning and an end. And the both of u should your own separate entities. Banks love that even more. More insulation and separation from partner liabilities. So when getting credit, you create each project llc with 2 separate llc's as partners. Nothing worse when u have a partner in one company and u have to worry about their financial liabilities. I've been where you are as a sole proprietor. And now have practiced project llc's with partner llc's and have my own 3 llc's in my real estate brokerage, home building and land developing companies.

@John Rooster

Sorry to hear your frustration. I can tell you that most builders are usually not willing to share their "secrets". You're competition to them even with just one build job. I have over 20 years experience in building industry and would love to help via the phone/emails if you havent found someone. The process is the same in most areas of the country. It's the lack of knowledge of the process that is the obstacle. Currently I am not building homes anymore but stay in the rehab investor biz side of it now because we still have decent inventory and the cash flows quicker as you know. I've also developed residential subdivisions, so working with the city, county and state officials is nothing new for me. Let me know if I can help even it is long distance.

Run Forest Run! To much liability and students make the worst tenants. My opinion.

Richard-

I am a rare type of broker as I am an investor to. Now most realtors just list and show property. However I see opportunity in helping people like yourself, if they find me or I find them. My strategy when flipping, if I am working with a newbie or a passive investor, is to locate the property, the investor buys, I make a commission. They hire me to manage the rehab project to learn, I make a management fee. Once it's ready to sell, I make a commission. So you can see I see the opportunity, "big picture". I make 3 fees in the one relationship and everybody wins. Now find someone like myself that has invested interest in your success.

@SethWilliams I am a real estate broker and investor and I know exactly what you mean. Realtors are rare birds. They each have their own way of doing business and specialize in what they are comfortable with. Definitely select one that works investment properties. Only work with agents that like to work with buyers even though u are letting them list your properties. A top agent who closes lots of deals, mostly lists properties but rely on other agents to sell, 75% of the time. Just remember that the reason for listing is getting your property in the MLS database so that the other realtors have access to the data. So negotiate their fee and maybe if you get your own buyer you can put that in the negotiations. Last point of advice, is price your property right when it hits the market. A little below the competition. In a 6 month listing, 40% of all your lookers will see your property in the 1st 30 days. After that it becomes stale. Time is money as an investor. Sell it fast, buy another. Good luck.

Thanks Matt for reply. I am located in a small Metro area, Killeen/Temple/Waco in Texas north of Austin so not sure how I could promote to commercial developers of their need in your example. There are many factors choosing a site that I am aware of but just not sure if they use local consultants or larger firms for that data.

Lastly, I am not sure exactly what field I would consult. I suspect it would be something that is most desired or that there is a niche not filled. I feel that I need a consultant to consult me. :)

I have been asked many times "Why don't you create a consulting business with all the experience you have?" I don't know where to post this idea on BP or know where to get offline advice to get direction to offer my experiences to individuals or companies that could use my 30 years experience. I would like to know how to set up an identity, promote, and operate as an independent consultant to firms or get hired on with a company. Other avenues have been mentioned such as writing a book, instructional seminars, promotional dvd's, a consultant website, etc.

MY brief resume is as follows since college 1985: new home sales, licensed realtor then broker, new home sales manager and regional manager, company VP sales & marketing for home builder, owner of 3 LLC companies (home building, land developer, real estate brokerage), residential design, estimating, purchasing, construction of small commercial buildings, meetings with city officials bankers and engineers, mortgage banker, consultant to individuals starting own home building and real estate companies, investor in purchasing and rehabbing residential homes, property manager, project manager of rehabbing investors homes, wholesaling, land trust deals, HUD/VA reo properties, BPO's.

Is there anyone on BP that can point me in the right direction that can offer advice?

-Barry