All Forum Posts by: Luther Wilson III

@Brock Dowis, what are you working on?  Let's talk shop - see if it's a good fit.

@Drew Sygit, Nope.  I'd need to charge a project management fee of some type for that part.  If it's maintenance on something that we already manage then there's no mark up.  :)

That's a great question.  Especially, right now...  It's probably not going to be in crypto, BTC or the stock market !  Unless, you're really dialed in and maybe know how to trade - I wouldn't even go there.

It might sound counterintuitive, but we're living in a very interesting and "unprecedented" time right now.  You might be better of leaving the money where you have it and continuing to stack it there!  :)

Hey, @Brian Ingram, are you looking to invest out of state or around your hometown?  Also, are you clear on what type of investing you'd like to do?

Like most things, it’s a numbers game…  You’re gonna have to present what you’re doing and what you’re looking to do with a lot of people.  After a while you’ll probably be batting them away with a stick.  😉

For most investors, if they can get 8-12% interest backed by discounted or cheap properties then it’s a no-brainer.  The better the deal the easier it’ll be to find a backer.  It’s all all out relationships and operating with integrity   🙂

David Dey and Mitch Stephen are two “gurus” I’d encourage you to learn from when it comes to private money.  Look them up on YouTube and listen to their podcasts as well..  There’s so much free information out there nowadays. Learning the ropes, getting reps in and executing is key, bro!  

Check out yellowletters.com  They've been a decent resource for us in the past.

There's a bunch of similar websites too...  If you do a web search for real estate investor yellow letters or direct mail you'll find all kinds of stuff.

They have a bunch of templates and examples of what you could do out there.  Tweak it as you wish and you're in there like swimwear!  :)

Hey, @Anastasia Gamino, we're here on the ground in KC already making moves.  What's the deal?  Let's talk sometime.

Hey, @Timothy Ng, might you share, in what part of town is the property located?  That could be part of the issue...  There's a reason your PM is struggling...  I'm sure there's a helluva back-story. 

Either way, it sounds like you're getting a true taste for what it's like to own rentals.  If you can push through this and survive then you'll be that much more prepared for future investments and hopefully, stronger and more resolved to get something better, maybe?

Thanks for the plug, @Alex Olson!  

We've been using a combination of private money and hard money.  For the hard money loans, it's been 10-12% interest only - along with 1-2 points - and we have 6 months (with an extension if need be, for a cost) to get the properties renovated and refinanced or resold.

The hard money lender we went through on our last two purchases (one in July 2022 and one in September 2022) requires that we make the interest payments each month but we needed very little to bring to the table, out of our own pocket, to get each one closed.  For some of the other hard money lenders we used, we were able to hold off the interest payments until it was time to resale or refinance but they required us to bring a lot more of our own funds to close them out on the purchase.

For the private money, it's been individuals who we've been paying 12% interest only - along with 0 points - and it's 6-12 months for the term. The PRIVATE MONEY, along with HOW we invest, have been absolute game-changers... Our private money lenders have been okay in "2nd lien position" and the funds are made directly to our LLC with minimal recourse or documentation, so it's really flexible and based on relationship & lots of trust. :)

 That's a vibe, for sure.  :)

Some other things of which you'll want to be mindful:

1.  The location of the property

2.  The ACTUAL costs of taking down the deal AND keeping it.  (pad and cushion everything and have extra in reserve somewhere or with someone.)

3.  Be reasonable on what you target as your potential "all in" amount on the purchase & rehab.  (I'd be less concerned about "built-in" equity now and way more focused on the location of the property and the size of the renovation project.) 

Basically, your options to buy are gonna be with traditional financing or a BRRR of sorts... Unless you find a seller who's willing to carry the financing or let you purchase subject to the existing financing. Even then, a BRRR for an owner occupant purchase as a house hack could be very challenging to maneuver through... Especially if it's your first go round... So really, the most seamless or simplest way to do it might be the traditional financed route.