All Forum Posts by: Josh Caldwell

As @Anthony Angotti pointed out, if the house is listed, you don't NEED an agent, but you probably want one to make sure nothing goes sideways. If the property is not listed, then you dont need to introduce an agent into the process. You can talk directly to the seller, and negotiate any sort of deal that you and the seller both agree to. If you go that route, you might want to tag a RE lawyer in and make sure that all of the paperwork is done correctly and that you are protected. 

The first step is to find a lawyer who can do all of the paperwork that will keep you out of jail. Start there. Find a lawyer who has SEC experience and who knows all of the legalities of a private placement memorandum. After that, then you can start presenting your deals to funders. The quality of your presentation and the numbers on your deals will have a lot to do with your ability to raise funds. With all of that being said, it would be a lot easier to just raise private money or get hard money. 

You left out the important parts. What will it take to rehab and what will it sell for when you are done. Without that info, nobody can evaluate your deal.   The key metric is that you can buy and rehab for 70% or less of the after repaired value. That other 30% is what you need to get financing and it is an industry standard safety margin for a flip.  

Yes you do have to tell the 1st position lender that there is a second position lender.  for the most part, the people in 1st position dont really care because if you deal tanks, they are protected 

Typically when you do this with private money, you have the private loan in a 2nd position mortgage. Closing with a real estate attorney makes this process a lot easier. A normal title company might vapor lock over a non standard deal like this, but your RE attorney can create all of the required paperwork to get this deal closed. 

Go to your local REIA club or meet up, look for an agent at those meetings. That person will really have experience working with investors, and likely be an investor themselves.

Home Depot and lowes both sell a chemical product that will take most of that residue off, but you will most likely end up sanding the remainder off to get a good surface to paint. 

No, that is not true. You can Refi out of an investment house. Whoever told you that was confused about a TX law that applies to your primary residence, not an investment property. You can BRRR in TX just like in any other state.

Everyone else has already pointed out the problem with the LLC seller holding your money. I want to point out the other problem. You said this is a 35k profit deal. The purchase price is 165k, even with no rehab budget this deal sucks. You need a 30% profit margin just for safety. That is an industry wide safety margin to help you survive. No sane lender would lend you a penny on this deal and it would be an very bad idea to use your own money on that thin of a margin. One mistake in the scope of work and you are losing money.

There is a good way to do what you propose that will give you asset protection and allow you to avoid the due on sale clause. When Congress set up the Garin St. Germain act they built in an exception to the due on sale clause for trusts. Putting a property into a trust does not trigger due on sale as it is not considered a transfer.  The loan will stay in your name, as it should, but you will gain asset protection.