All Forum Posts by: Michael Zau

intern for a lender, the mistakes learned by others will be invaluable and worth more than 25% of an commission on any transaction. 

income method, and then discounted for interest rate directions. 

the challenge is with every individual, if you are doing it for income purposes, its better to stay away.  However if your skill set allows for this and benefits the consumer or yourself for the business, its a great model.  The money is just gravy. 

Because most mortgages are front loaded with interest, you want to max the cashflow and max the tax writeoff. In larger cities, where the prices escalate quicker, the BRRRR method works as a refi every 2 -4 years into the cashflow where the actual caps are lower. The lower priced cities are where monthly returns are higher and so you want to amortize longer so that you can maximize the cashflow. There is no right or wrong method, there is a strategy with every investor however and the plans that it takes does involve debt and the period of payoff. The emotions that go with debt can be high so thats why the strategies are different.

When you pull your credit, it effects your score temporarily for 90 days and depending on how often its considered, "hard pulled," showing up on your credit report; it will effect your score... for 90 days or so. If you are pulling your credit every month, that in itself is an issue, so putting a contingency plan in place for credit, such as credit lines, business partners, preapprovals good for 120 days are such examples, to name a few. Having great interview questions tailored for your needs will also be important as every lender has different overlays and also every loan officer\ lender has different backgrounds and expectations for their borrowers. The BRRRR method works very well, when you have plans for all things, in place, for financing, fix up, future expectations ( plans). My three "F"s.

Investor:  someone or entity that invests money into a project, has done due diligence in research, has an equity or stake in which there is an expectation of return, however understand that there could be a loss.

Partner:  someone who has investment of time, energy and input so that the final outcome shows a return of time.  Money may be an expectation, however may not be in the final outcome.  This person may or may not have an equity stake in the investment or property.  

After reading a few posts, it seems he is looking for investors and not so much a partner. 

Real Estate is a long term 10+ years investment.  Over that period there will be ups and downs.  In the southern California market, time will win most of the time.  However it doesnt matter up or down, if the cashflow returns your money over time, and then some,  Upside, is the gravy.  The cashflow over longer periods is the meat. 

@Darren Hicks as of December 19, VA doesnt allow for combined loan to value above the 100% If your intention is to record after the fact, you open a whole new can of worms that could hurt everyone in the transaction if the servicing company finds out. Of course you can circumvent the guidelines, but question isnt if you can get away with it, the question is, are you ok with the consequences of getting caught for $20,000? I wouldnt'; and think that the agents and buyer must have a better way to close for you, for a better net gain. Your terms of the note are really formalities and in the big picture, whether its 3 months or 3 years, they are both relatively short time periods to get paid off.

@Chris Mason, yes you can, but its extremely risky and unwise, unless you have private investors  that have liquidity and saavy to procure the property.  Banks, no, private or hard money, possibly. 

Is there another meetup coming up soon?