All Forum Posts by: Mat Farmer

 Hey Antonio.  I hope your trip has been productive thus far (based on when you posted, I assume today is your second day in town).  I'd love to meet if you have time while you are here in town.  I'm not sure if you are looking for turn-key or something that needs some love, either way I should be able to help you out in the 8 days you are in town. Full disclosure, I represent a large-scale wholesaler here in Dallas.  We specialize in helping investors, like yourself.  Give me a call when you get a chance.  214-228-8637.

Hi Eran,

I'd love to help you out. I work with investors like yourself on a daily basis in Dallas (and even help some Californians purchase our Dallas properties). I can also connect you with some colleagues of mine in Houston and San Antonio who do exactly what I do - help place investors in distressed properties for rent or flip purposes. I'll shoot you my contact info in a private message.

Best regards.

Hello Sayo,

To introduce myself, I represent an acquisition company that helps investors just like you on a daily basis (hope that didn't come across sales-ie...just want you to know where I'm coming from).  My first question is regarding the rehab process...when you say the seller is interested in just having you come in to do the repairs, do you mean that they would retain ownership/title to the property while you rehab it?  If so, I would tread very carefully.  Ideally you would take ownership of the property before ever swinging a hammer (you want to make sure the sweat equity stays yours).

As far as divulging the info to a realtor, I wouldn't necessarily be concerned about working with a realtor you trust to obtain comps, but they are likely going to want to represent you in the transaction, or be compensated somehow.

I'd love to help you more on this or answer any additional questions you may have.  My first thought when reading your post is that there is definitely a more streamlined way to handle such a transaction, and do so in a way that doesn't expose you to so many unknowns.  Feel free to private message me and we can chat more in-depth.  All in all, I wish you the best on this.

Regards,

Mat Farmer

Hi Gerry,

I'd like to expand on what Hattie already mentioned.  What is it that you hope to take from these REIAs?  Networking, learning, or a bit of both?  If your main goal is to learn and get your feet wet, then I'd love to provide assistance.

Mat Farmer

214-228-8637

Hey Tony,

Welcome to the world of REI. I don't think you would be wrong at all in offering $50k, especially considering it is a cash offer (assuming it truly is cash). You are basically offering the benefit of a quick close and no financing contingencies. What should also work heavily in your favor is that the seller had a buyer already, but it fell through. Come to the table with your offer of $50k cash, no financing contingency, and offer a quick close. The worst they can do is counter. If that property truly cash flows $550 and you can occupy the other side, this seems like a pretty sweet deal.

Good luck man!

Mat

Hey @Lance Borden - In addition to the ones that @HDizmond mentioned, there is a big one that takes place on the 2nd Tuesday of every month called the Roddy Roundup.  I haven't been to it yet, but a number of my colleagues have.  I'll be there on the 10th.  It would be great to see you there.  I have attached a link in case that is something you are interested in...

http://www.meetup.com/RoddyRoundUpDFW/events/212619762/  

Hey @Kennex M. Welcome to the site. I am in Dallas as well and in the REI mix. Feel free to bounce any questions you may have off of me. I wish you the best of luck.

I'm going to have to agree with @jasonscott on this one.  

@Mike Perrotti I think the biggest question is do you have boots on the ground in any of the areas you are considering?  Although certain markets present a great opportunity for investors, you will always need the ability to manage that investment properly.  I am not saying it is by any means impossible to do otherwise, but you will definitely set yourself up for a more positive experience if you have an out-of-state contact.  The out-of-state investors I have helped with properties here in Texas all had someone they knew and trusted here in the area...someone to check in with the contractors, someone to at least eye-ball the property prior to purchase, etc.

I wish you the best of luck, Mike!  I hope you find the advice you need.

My initial thought is to see if you can renegotiate the terms of the lending you are receiving from your mother.  If she is truly taking 35% of the profit, that means she is taking a bigger percentage than most of your hard money lenders out there (obviously this depends on how much she is loaning you, but you get the idea...the rate of return a hard money lender is seeking is typically not going to equal 35% of the deal's profit).  This is counter intuitive considering most people I work with that use hard money are doing so for one of two reasons: (1) they want to leverage their cash across multiple deals (the smart play), or (2) they have no other means to getting into a deal so they HAVE to use hard money.  The people that don't use hard money and don't have cash of their own fall into a third category - these are the investors that have a friend or a family member that will lend them money at a friends and family discount.  It sounds to me as if your mother is acting as a lender, but expecting a payoff as if she is a partner.  So, that is my suggestion.  Have a very real conversation with you mother and see if you can renegotiate the terms of your agreement.  Find a set rate of return that you can both agree on that you will pay her on the dollar amount she lends you.  

I wish you the best man.  I'm always free to bounce ideas off of, just reach out.