All Forum Posts by: Account Closed

Good advice @Deanna McCormick but @Alexander Hamilton said he needs the credit partner to get the deal done effectively! So cheers to being creative 80% of a deal is better than no deal or a deal on port terms or too much invested 

Good luck 

@Alexander Hamilton I think your on the right thought process to utilize the partnerships to make a smaller down payment for the option to buy more property. In the long term the less you put in the wiser the investment even if you spit some profit. Depends how much you split though. 

I would say 20%-30% is fair on the credit partners side if they are not providing cash or assisting with management 

If they split the down payment and supply the credit with  you supplying the deal and are the "asset manager" so to speak. I would say then split 50/50 if they are Splitting down payment. 

If they don't have money for down payment now. Take it in payments out of the rent money for the 1st few years 

I would look at it from the standpoint @Paul Bowers is getting at. How much leverage do you have here to be able to close the deal? Do you have another credit partner available where you could negotiate/structure a lower partnership with the original and still be ok if they back out. 50% is better than losing the deal, but I agree with you they are not bringing 50% value. Maybe try to negotiate if they want 50% equity then ask them to supply cash as well! 

It's all about the leverage here though. The more experienced you are and more partners you have in your network the more leverage you have to negotiate without risk of not being able to execute 

I am analyzing a potential flip that is directly across the street from an elementary school. It is in a great neighborhood and great school district, but concerned about it being so close to the school affecting ARV once listed. Anyone have any experience or opinion with selling a home directly across the street from a school?

@Richard H.

I am currently working with an excellent attorney. Reach out to @Vincent Incopero for this question or help with any real estate transaction out here. He is simply the best!

@Demetrius Davis

I have great deal flow coming in, just by reaching out to several realtors in my targeted markets. Some reply back with great deals right away and others you might not hear back from, but a good deal is worth a 20 or more phone calls networking! 

What is your current path for lining up more funding?

@Nate Lawson

In Illinois on the seceretary of state website it takes about 10 minutes to make your LLC and it has perpetual exists immediately. Costs $600 wait until you are ready to make an offer on something and make your LLC the day before and by the time it is accepted you will have an email with your full articles of organization. I as well as many lawyers would strongly discourage you from doing any deal in your own name and not under and LLC.

@Chris T.

Awesome job Chris. You and your contractor got the finishes just right that's what's moving out here in the Chicagoland market! Assuming you stayed in our market in the suburbs!?

@Brittany Brown

How long are you planning to live there, while completing rehab?

Upfront though I would stay away from Hard Money too expensive for what you are looking for in my opinion. Look into the 203k loan as @My Pham suggested. Private lending would be tough unless you could find someone who would be willing to give you a longer term loan as you talked about living there and then later possibly renting. 

@Ibn Abney

Thanks for the prompt response. Yes both. We are looking for 90-100% financing, or equity partners who could gap fund the 20% of an 80% hard money loan.

   And yes we could wholesale the properties, but we are really using that as a last option because we have the full team of reliable contractors to get the projects done on time and under budget and make top dollar. We also want to maintain the great relationships we have with our realtors and continue to grow with them by giving them the sale commission as well!