All Forum Posts by: Nicholas Mann

Hey all,

Not sure if this is the right place to post this. But I’ve recently been in contact with a friend who would like me to basically lend private money tied to a property. The home was a flip project that was seller financed and now the seller wants his money out of the deal. I would in turn invest “x” amount of capital and get paid back 10% interest until the property sells. Will equal about $200 a month. Length of the loan is 12 months. I could be wrong but the way it was explained is that i would have the “note” to the Property or would be able to foreclose if the borrower didn’t not pay back. I will have an attorney look it over before signing anything but I was just wondering what people on the forums had to say about this.

Thanks for any help

@Phil Jones

Hey Phil,

I know a great mortgage broker that works in the area. You can message me for more info if you’d like.

@Jorge Abreu

Great report!

@Joe Livsey

Hey Joe,

If the offer is already accepted and you have a pre-approval for the FHA then just move forward and see what happens. Unless certain aspects of the property won't pass inspection I don't see why the loan wouldn't be approved due to unclean tenants. If you do have issues with the FHA loan you could always reach out to the seller and either A) See if they would deliver the property empty or B) advise that you wouldn't be approved due to the issues around the tenants. Possibly offer to have a professional cleaning company clean out the apartment (probably too extreme to do for someone else) but if it helps you land a deal that can make you a lot more money down the line do what you gotta do.

Best of luck! Interested to see how this turns out.

Nick Mann

@Tim Donovan

I like to input the property on Zillow rentals then scan the surrounding area to see what similar properties are rented for. This is just for a rough estimate of the area rent and seeking advice from property managers in the area and doing further research of market rent should be utilized when doing full analysis. But ideally for a quick estimate I like Zillow and I’ll follow up after.

@Rich Lennon

As Warren Buffett put it “we all won the ovarian lottery”. Buffett at almost 90 years of age being one of the richest men in the world stated in his free to public Berkshire Hathaway Press Conference that a baby being born in the United States in 2020 is better off than anyone being born anywhere in the world at any point in time. Adding to that any of us fortunate to be on a Real Estate/Networking/Wealth Building/Forum/Social Media platform to vent about our current setbacks and downfalls during a Global Pandemic should be thankful that we are still here to “vent” about such issues. I think this website and content is amazing to provide for anyone just getting started in wealth building specificially geared towards real estate free information and knowledge. Look everyone across the entire world is affected by what happened the past few months. We will all overcome it and adapt to whatever the future has in store for us. Anyone still able to scroll on there computer or cell phone to read through these posts should consider themselves beyond lucky. God bless all of you and keep fighting wether it be Emotionally, Physically or financially!

@Daniel Fitzroy

Hey Daniel good luck on your journey!

I would suggest if you don’t really have a high paying job right now to continue working and saving as much as you can while still learning about real estate. I can’t speak for everyone but when I was younger I didn’t make a lot and I saved almost every dollar I made so I could invest it one day. Invest in books about real estate and look into possibly wholesaling or doing a house hack. You’re gonna need good credit, enough income and some money saved up to get into real estate and not be underwater as soon as a tenant stops paying. There’s no get rich quick in basic buy and hold investing so no rush to get started, just educate yourself on ways you can get involved and as many people on here have began investing with hardly any money out of pocket.

Best of luck!

@Teahjsia Frazier

Best of luck in wholesaling!! I would recommend reading Anson Youngs Finding and Funding Great Deals you’ll find a wealth of information about wholesaling and finding deals in general. Start there and continue expanding your network and being active on the forums.

@Scott Raynor

I think a few thousand difference around asking price won’t make or break the deal. As others here have stated you need to know if the deal makes sense for you. I overpaid for my house but it was worth it to me to buy the house I wanted to live in. Now as I look at investment properties if all the numbers make sense and I can offer below market and acquire a deal then it works. Look at comparable properties in the area that have sold and do your own comp analysis. Also you said you would be inheriting a tenant who might sign a 1 year lease, be careful with this if you yourself haven’t Vetted the tenant. It might sound nice to already have rent coming in but if your tenant decides to stop paying and you have to evict it might be a different story. Either way best of luck and if the property makes sense to you and you can add value then don’t worry about a few thousand dollar difference.

@Conor Duffin

Not sure if there is some confusion here about the numbers you are posting but if you know you'll be cash flowing "x" amount a month and your ROI makes sense then by all means go for it. Just my point would be that if you're afraid banks won't touch you because of you being Furloughed some hard money lenders might not either, especially if you have no skin in the game. But only one way to find out would be to start calling up the lenders and seeing what they say! Best of luck and interested to see how this turns out!!