All Forum Posts by: Patrick Daniel

I agree with the posts above. A known quantity for 10 months at a higher price is great. Still screen though just to cover your assets. 

As some others are saying, you may be in a situation where you are priced too far below market. 

And if your market continues to go crazy, you may find yourself in a situation where it makes sense to sell and redeploy your cash in a less expensive (or possibly less inflated) market.

Best of luck!

The numbers come down to what your goal is. Are you looking for a 7% cap rate or a certain amount per door per month? Are you betting on appreciation? do the expenses account for management or are you self managing?

10% vacancies is standard, and expenses of 50% is healthy. I like the idea of 6 months of operating expenses in pocket just in case things go wrong. Even a good deal can turn bad if you dont have the capital to protect your asset. 

Best of luck!

@Michele B. Those interest rates are pretty good!  Who do you use?

Hi Daniel, 

Lots to unpack there, but first of all Congrats on working 3 deals at once. That shows hustle!

I would try to find references from other local Real estate investors. Do you have a local REIA? I have used Thumbtack and Home Advisor with mixed results.

I would not use the same GC for all three deals, especially if you do not already have a good working relationship with them and know the quality and speed of their work. What if they decide to up and quit on you or you need to fire them? If they were working on all 3 projects then all productivity stops for weeks until someone can (hopefully) come in an pick up the slack

Have you looked into transactional funding? There are lenders that will provide the capital for your side of the closing, often they just require proof that there is a buyer lined up.

Is this going to be permanent or just while you are renovating?

This episode was chock-full of actionable ideas and ways to use lease-options. I also like how Shiloh shared his struggles as well as successes. People need to hear the bad as well. When they only hear the positive like on some other books/podcasts, that is where the disappointment comes in when the reality doesn't match expectation. 

Also, @Tim Cavalier, Let everyone you know or come across know that you invest in real estate and try to help them fix their problems. Some people's problem is they have a deal they need to sell, while others problem is they have money they don want collecting .00002% in a savings account. REIs are problem solvers by another name after all! 

Normally you can do a Quit Claim deed and add the partner to the title. This can cause some issues in a couple of places:

1) For the partner, if things go south, they are not as protected down the line, but if they trust you have clear title, then that should not be a problem.

2) The mortgage company can have issues with it, but since the QC is not transfer of responsability to pay, just the transfer of personal ownership, it is often not called by the lender. (However, This does leave you as the person with the mortgage as the only person liable in the even that the mortgage gets paid.)

Hope that helps! 

If you go to the Tools tab at the top of the page and click on "FilePlace" there are a TON of forms that can be a huge help. There are wholesaling contracts there as well. As always, be sure to get the forms checked out to make sure that they are legal in your jurisdiction.

Best of luck!

Hi Stephanie!

Have you looked for a local REIA to find locals or used BP's member search function under the Network tab? I was able to find a couple of people in my local area that really opened the door for me to additional contacts.

Best of luck!