All Forum Posts by: James Hamling

I have done the partner route, several times, under several structures. Seriously, many many. Heres my #1 advice

!!!!!!! DONT DO IT !!!!!!!!!!!

lol. Seriously, DON'T. Every time, no matter how fancy I structured it, JV's, LLC's, corp's, every time it has been a HUGE pain in the azz, with conflicts and bs. Find a way to partner WITHOUT partnering.

Oh, and I didn't even mention the tax issues, or dumbfounded closing co's so they want to hold proceeds in escrow for a time. Seriously, no matter who I did one with, no matter the structure, there was always a bunch of bs that made it not worth it.

Not to be a jerk, but really, seriously, please say you were not serious in asking this.
Leveraged to 100%, or even anywhere near it, unless you have the cash to burn without a care, is a recipe for disaster. You start loosing exit strategy potentials, big time. And then the chance of going upside down fast.

Where have you been for the last 3,4 years?

Our current R.E. market in the U.S. as a broad brush generality (I know there's many exceptions to this) is a declining market, meaning falling values still. That's why.

Charley,

Be certain to check out the downloads, there are some very good excel formatted spreadsheets for a good focused calculation. I don't know who uploaded and posted them off top of my head, but they will be a huge leap up from where your figuring your financials now.

Yeah, excellent point Will.

Comes under "plan for the worst, hope for the best", and "C.Y.A.!!!!!"

This is just my opinion, but I think the best way to spend it is to save for a few months, then call me up, and you take the 2of us out to Vegas!!!!!

Lol, just kidding...... unless you would like to do that.

Awesome that you are so green in your 1st one, congrats! DON'T let your success make you cocky in the next ones. Work each like your gonna loose out.
I think best use of those funds is easy, REINVEST. Strategise how your gonna get your 2nd. Either doing what you did on #1, or maybe other funding, pull equity from the first, so on and on.
If you keep that ball rolling in the green like that you could get to a point where you could pull on some commercial financing, based upon not on just the property value, but on the business revenue. Then it's a whole different ball game.

Again, congrats on gettin in it to win it. Now "rinse and repeat"!

I use private and hard money, and it is not cheap. If you use it for any %, you better make sure you can sell or finance out of it because if your stuck into it, the cost of the money can sour the margin into the red real quick.

Plus, most private/ hard money has a real short term, all mine balloon at 6 mnths. There may be longer ones, but all I have looked at generally have 6mnths as there standard. I have never passed 3.

you CAN deny them based upon being an ex-con, you just gotta know the rules.

Sex offenders can not be in a certain radius of parks, daycare, schools, know where they are around your properties and enforce it.

There are circumstances where you can deny a drug offender, say, such as if your insurance will deny policy due to a tenant with a meth manu. charge.

No you can't blanket deny any and all, and I don't think anyone should. People screw up, ALL people, difference is to what degree, if they get caught, and if they change.

Some stuff is unforgivable, like anything ever to do with a kid, EVER!!! But to say such a prejudice ignorant statement that most return to crime, is just ridiculous. Don't believe me, check the stats at how many felons are in the U.S., the number blew my mind when I found out.

A r.e.i. friend kind of pulled me into volunteering in this group that assists released cons. They don't give them anything but advice, someone to talk to, and a person to help them solve issues, like finding housing not surrounded by drugs. Yeah, some con's are real dirt bags, i tell ya what, but some, people who had a insanely had life they were born into, and did the wrong thing for the right reasons. Then theres the ever so few who are quazi heros, like the guy he beat his daughters rapist half to death. So all you dads, you tell me, what would you do if you were face to face with your daughters rapist? Hes a con now.

Joshua,

Kudos for all your points, and originating the discussion.

I agree, service has been bound, gagged, and left in a road side dumpster for trans-national profit conglomeration. Sad part is, how much and easily people have greeted it. I myself, must seem to be the "nightmare" customer, I expect that age old adage of "being treated like a customer", and greatfully pay a value price for it.

I expect the same from my realtors, although your experience in the O.P. is the rule for what I too encounter, although I do not find it acceptable.

A r.e. agent is in place and employed to be there customers agent, just like a lawyer. Could you imagine hiring a lawyer, and having them only tell you bits and pieces of important information on a case. And similarly, the opposing lawyer is all but expected to withhold information (other agent).

Responses and service such as you brought to light exist for 1 reason alone, we the customers allow it to be so. Customers raise there standard of expectation, agents raise service performance.

I personally do not wast any time dealing with an agent once i encounter a response such as that. Experience has told me, I need an expert in there dragging out full info because what i don't know would hurt me.

Wes S.

Turns out were neighbors, with the exception that I am in those bigger markets. <3% vacency rates. The oppertunity is rediculous, and it would blow your mind how few people are tapping into it here, most are spending there time crowding into the flips still, lol. Probably because few have the financials to hold, or because the guru books are not preaching the holds yet. Those books and systems are always just behind the curve.

Contact me if interested in speaking. I am retooling for holds of a couple sorts, i was all flips. Conventional and non-conventional holds. We could speak, I think we could scratch each others backs on this.

Wes S., after reading thru this I'm thinking "wtf, I am high buck when I thought i was blue collar". I will put one of my first, and more recent, you tell me what you think. Seriously, I want the input.

Wells REO (I believe, been a long time)
List:159K
1st offer:119K + change, cash offer
asked biggest & best, said had a offer at asking in (I assumed and gambled was a financed offer, based off the response)
Offered 124K, cash, 15 day closing. Accepted.
finished basment, placed appliances, 22K cost. Recieved 200K offer 3 days. (decided to keep it and move into it, lol. Was too nice).

Fannie Mae
List:149K (was droped from 170K that day)
1st offer: 117K
asked biggest and best, offer and accepted at 123K
78 day rehab, full gut, it was ugly, changed and replaced everything, built master suite, added full bath, redesigned kitchen, all mech.: 74K rehab
Listed 5 days, sold 245K
(rehab ran wild, not my greatest deal by far)