All Forum Posts by: Luke Diem

Have you considered becoming a private money lender to real estate investors who do fix and flips? With your experience in real estate investing, you could decide which deals you would or wouldn't be willing to invest in. There are plenty of people out there with resources to good deals but don't have the money to continue flipping them at an aggressive pace. You could even probably work out deals where you receive 50% of the profits from the flip.

I would say the deal seems a little thin. How is the property currently preforming? Do you have any numbers for us to go off? Personally I would look for a bit of cash flow. If the deal don't meet my standards and the seller won't come down on the price, I'd move on. Don't force a deal.

Thanks everyone for the advice! JJ Conway And I am a newbie, this would be my very first deal if it goes through. I believe that's most of the reason I am having such trouble with banks. Since you are more experienced with this type of situation, what would you suggest I pitch to possible investors? I guess that is where I'm struggling.

How do you legally search for private lenders? I know everyone says talk to friends/family and other people around you. My issue is all my friends are still in college and have college debt to worry about and are in no position to lend money even if they had it. I've also had no luck with relatives. I am currently in the financing process for a duplex I have under contract and the red tape with banks is just ridiculous and I am worried they won't lend me the money. If they do, I am worried about hitting the max amount of mortgages in the future that they will allow me to have. I have a good credit score, full time job, all the qualifications a bank would require and some money for down payment. Should I just get use to this or would searching for a private lender be a good idea? I do all my homework on the properties I look at and with the help of BiggerPockets calculators I am able to find properties the hit or are close to the 2% rule.

Okay so it seems that you need to apply the same or similar rules that you would apply to a fix and flip. Offer 70% of ARV minus repair cost and then I would be in a good position for the BRRRR strategy? And I think this deal is still something I would like to follow through with because I believe I was able to get it at a price that will allow it to cash flow fairly well. Now is there any other options then aside from BRRRR that I could use this property to advance to the next?

Okay that makes sense. Thank you guys for the input!

It will be a 15% down payment.

Would it be recommended to pull out as much as I can after the seasoning period? I have a few other deals I am looking to jump on and am worried I won't have the funds ready.

I have a duplex under contract right now. Purchase price $70,000 and could use around $2,000-$3,000 in work (possibly less). Each unit should rent for about $625-$650 each. I am a brand new REI and this will be my first deal if it goes through and the inspection checks out. I guess what I am looking for on this post is any advice on this deal and also advice on what additional steps to take during or after your first deal. Also if the BRRRR strategy will work on this property to pull my down payment out and move on the the next property (I believe this property appraised for around $80,000).

Patsy Waldron that was a concern of mine patsy, but the lender I had talked to said as long is the property approves and fits their guidelines I can do one after another. I made sure to re ask him the question because I was also questioning it. Possibly he was wrong or maybe this specific lender has different rules. I will be sure to ask him again and read through the loan description myself. I also have the 20-25% down payment ready, I figured I would just take advantage of a loan with less skin in the game that way I would have reserve funds ready if for any reason I would need them.