All Forum Posts by: Account Closed

I have been searching for a what I would call a 'rehab budgeting calculator'. I was wondering if anyone here is using something like this or has made their own and would like to share. To explain, I am basically looking for a program or excel sheet formatted document that I can alter with my own estimated prices for projects with my main goal being to systematize my process. 

i.e. I would be able to add my own estimated costs into this program and/or formula once and save it, then when I would be analyzing a property I could just put number of bathrooms: 2, the program/sheet would then give me an approximate estimate for 2 bathrooms going off of the estimate numbers I have originally entered.

I basically want to setup this sheet in a way that I can enter all the estimated prices associated with a home once, save it, and then reuse it where I can go through it quickly enter a numerical value of how many bedrooms, bathrooms, kitchens, flooring etc. needs to be redone and at the end it will give me a full price for the project.

Please let me know if anyone is using anything like this or if I was not clear in my explanation. 

Thanks in advance and I look forward to hearing back.

Thanks for your help guys! Much appreciated.

Hi All, 

I have a question that I am not quite clear about and was hoping someone has dealt with before. 

Does an owner who is currently in a loan modification and making payments on it have the option to short sale the property? Is this something that is up to the lender or is it even possible in the state on New Jersey?

Thanks in advance.

Luke

@Brian Burke and @Bryan Hancock .Thank you for the detailed answers to my questions. @Bryan Hancock it doesn't sound harsh at all, thanks for your honesty as this is what I am looking for. 

In your opinion, what is the best way and/or some ways that you have used in the past or heard of to fund your first deals. I know some people on here are beginners and some are veterans who run a successful business. However, one thing we all have in common is that we all started somewhere, all of us had our first deal and at one point none of us had a track record. It would be nice to hear what was successful and what failed for some of you.

Based on your answers and what I have read and gathered from other on here and through networking is that partnering with someone on the first deal is our best option. 

Please let me know your thoughts.

-Luke

@Curt Davis I feel like this is a good option for a new investor like myself who has no track record of prior investments. If done responsibly, I feel like this is a good way to finance one or two deals to establish a track record to use to pitch to future investors.

Do you/as well as everyone here feel this is a good idea or are there other ways of approaching for private money without a track record?

@Divina Maruca Thanks for the explanation! I now have a clearer picture of which route we should go down. Finding a deal and then marketing it to investors. This does bring up a question:

Should we be putting in offers and getting the house under contract even if we don't have investors for that particular property? 

The reason I ask is what if you want to move forward with the property but have no investors to do so yet. By the time you find an investor, even if it takes a few days or even hours, if its a good deal it might and most probably will be gone.

Thanks.

@Jon Holdman Thanks for the quick reply and information, it means a lot. Going back to what you said at the end, I find it will be an obstacle to raise money without having a track record.  We plan on investing our own money into these deals as well to show the investors that we are at risk too to make them feel more comfortable with believing in us. As we are doing our first deal/pitch, from your expierince is there anything else to keep in mind or any other ways that we can makes the investors feel more comfortable about investing with us?

Thanks again.

Hi All, 

As a new investor, I have a couple of questions regarding raising private money. My business partners and I are putting together a pitch and list of who we would like to start approaching to fund our deals. We have seen many properties and can actually make moves on a couple the only restriction is that we do not have the capital to do it ourselves. We came upon a couple questions that I thought the biggerpockets community members would be a perfect source for. Please review the list of questions below, any help and feedback from past experience is appreciated as I am sure we can learn from all of you. I know that some of these might be beginner questions but I wanted to get an understanding of the different type of scenarios that can arise during this process.

- If an investor wants to invest with us, how do we go about having the individuals contractually bind to the investment, if at all? 

- Should we wait till we have investment opportunities to start raising private money or do we go about pitching private money without opportunities yet? Being a beginner this is something that will be a huge obstacle for us, so I wanted to know how some of you overcame that obstacle? Property first then pitch, or pitch first and look for properties, or 50/50 etc.?

- Once a deal is found, who's funds out of the investment pool are used first, is there a priority based on the money raised. For example, if we raise 50K but only need 30K, how is that decided on who's funds we utilize first for the deal? Not wanting to leave anyone out of the deal who wants to participate, not sure how that step of the process works.

- When pitching for private money do we pitch from the angle of it being an investment pool, asking if the investor would be interested and then once we are finding deals we send those deals to all the investors we met with and see if they are willing to join in on it? or is it suggested that we come to the table with properties and/or pitch an individual property?

- If a deal were to go sour and multiple investors are in on it, how is the money divided up to pay them back, do they sell the property and divide the proceeds? or is the property foreclosed and upon sale the dividends are allocated between the investors?

Thanks again for your help and I look forward to hearing back all your feedback.

-Luke

New investor looking for agents specializing in REO and foreclosures for buy and hold in the central and northern New Jersey area (Essex, Bergen, Union, Middlesex counties etc.) Please contact me with your info and/or listings.

Thanks and I look forward to hearing back!

@Christopher B. If you don't mind elaborating, what would be some better alternatives? The reason I ask is because I am looking to get into a program like this in New Jersey, it's not Fortune Builders but it's a coaching program of 6 months that is about 15K, allowable to be split up to 4 partners. They provide the exposure, coaching, and aid you through the process of raising money, finding deals, due diligence etc.

Being a beginner and not owning any property yet, I have been reading a lot as well as networking and attending REI club meetups in the last couple of months. With so many experienced people in the field it is very overwhelming and I am looking to try to avoid making mistakes which I know I am vulnerable to making being so new. IMO, Even though the coaching costs money, I feel that if I'm going to do it, this seems like a way "to do it right" instead of stumbling around by myself and making mistakes, not saying I still won't make them but just trying to alleviate as many as possible. Although I have a good head on my shoulders and do not rush in until i do all the appropriate research, possibly investing in something that does not field maximum investment potential is something that is always in the back of my head. I feel since these are proven systems coming from people who have been doing this its a better way to get started, or at least a good foundation to get started having the confidence that you are using systems that work.

Would love to hear yours as well as other experienced investors thoughts and/or feedback on this.

Thanks.