All Forum Posts by: Mike Carr

When is the next meeting? I just found this discussion group. Would love to meet other investors from Delaware. I currently have 2 flips and 2 rentals under my belt. Looking for more rentals (small multi-family) in Wilmington. 

Delreia is a great palce to start. Also check out "Greater Delaware Real Estate Investors Alliance" on facebook. Both are great places to meet people who can mentor/coach you. 

If zoning allows it you could get shipping containers with storage doors. (google  image search "storage containers with storage doors"). Then you are in the self-storage business. Obviously you would have to consult with a lawyer on the legal process/documents/ etc and make sure the numbers work. If you want security cameras and motion lighting just by a little shed with solar panel on top so you don't have to tap into the utilities. 

How would you structure this type of business?

Two friends of mine (Friend 1 and Friend 2) have expressed interest in real estate and Friend 1 has the money to do so. I want to open an LLC with Friend 2 in order to distribute the workload and handle day to day operations. I could handle it myself but I also flip and landlord so this is not a full time gig. I will have Friend 1 provide the financial backing. My thought process is to pay him back with 10% interest. If I put loans out at 12% and 3 points than we would keep the 3 points and 2% difference. The money would be handled on a per loan basis so we wont be paying interest on large lump sum.

Questsions:

Should all three of us come together in one llc?

Once the loan is originated do you service it yourself or hand it to a loan servicer?

Do you need a MLO to do this?

Any software to keep track of the loans and provide simple statements for us and outside investors?

Financing the entire project: Use an escrow company to handle draws at borrowers expense?

In your opinion, what is the most important part of due diligence as a hard money lender? 

How restricted is advertising what we do? 

Any major items or tips from seasoned lenders that might help?...we have already come up with loan terms/criteria/ ratios/ application process that are pretty standard in our market. We will have the borrower sign personal guaranty and a deed in lieu. Also, we will have an attorney and CPA set up the business and necessary paperwork.

Thanks for any input.

I

Just started using a financial calculator a few days ago. It keeps spitting out 18% for 20 months with those exact numbers.

I have been looking at performing notes recently for cash flow purposes.  Wanted to know if anyone has structured deals to take down pools of performing notes using other peoples money. The reason I ask is because I have heard of someone who uses OPM to purchase performing 2nd's and is making great money. I never got the name of the person so I can't ask for myself.

Example of a 1st position performing note.

Purchase: $10,000.  Monthly payment is 582.46 with 20 payments left. 

If I purchase this asset with my own cash than I would be looking at 18% yield.

In order to scale this up I would like to bring on investors and give them a 10% return in order to fund the project 100%.

However, this brings their monthly payments to 544.90 which leaves 37.56 for me....this does not even include servicing fees or due diligence fees. 

I want to be in the deal from the front end to the back end...I don't want to sell a front end partial to recoup my money and wait months/years to get passive income. 

Any help would be appreciated. 

Mark, yes that is correct. Check out their website Delreia.com and make sure you rsvp to the meetings. See you there.

Mark, I am in Newark. I highly suggest going to the DELREIA meetings. A lot of good people there that can help you with whatever your goals are. Maybe we can meet up at the meetings and discuss some Real Estate. Good to see another person from Delaware. There aren't many of us!

I was wondering the same thing. In for answers.

I talked to a local inspector/good friend of mine about bandit signs in my area. He said it is a $100 fine per sign per day. They also patrol the city at 6am on saturday and sunday mornings. They patrol that early because of a new fine they have pertaining to trash in the college area. I highly suggest finding out the laws in your area before doing so. You could rack up a hefty fine without knowing it.