All Forum Posts by: Andre Key

Im with Jay you may have to to chalk this one up as a learning lesson.  Hopefully you have a structural sound property that can support the rents that you desire to get.  Your realtor should have been able to give you an idea of the rents that you can receive.  Next time use a realtor with strong negotiation skills who want compromise your demands.  Trying to take legal action can cost valuable time with little legal recourse. Either way if you do pursue please keep us posted on your progress.

I need to here from the many exceptional people on this forum about what are great terms on hard money and private loans.  I need 50% of the cost for a residential construction project where my company has partnered with an experienced builder.  I expect a 4 month turn around with build time and sell.

If I ask a private investors for the cash what would be good terms if I asked a hard money lender what would be a win win situation. I understand there are professionals here with vast financial knowledge but keep it simple.  If anyone has been on either side of either transactions please share. 

I always say create your own list why continue to depend on someone elses data. I feel like one should invest in a system that may work for them.  When I use to buy list I always felt that they were saturated.  

If you have a great squeeze page invest in it if you have a great pitch train it to others on your team. The key is to find people especially local people before they reach some of these list. 

I use to run door hanger campaigns in subdivisions based on certain metrics, sure it wasn't a specific list but I found specific motivations to sell are common in certain subdivisions.

Jamal,

So many times investors or wholesalers get a bad wrap.  Through the years I had people call me back the day after agreeing on a price and signing the contract wondering if I just made them sign their house away.  Even after I thoroughly explained what was going on. Sometimes people in distressed situations listen to the wrong people, like a family member whose never sold a home or a skeptical friend.

However when you present yourself as the expert and you genuinely make it about the seller and their best interest, it shows to people.  Jamal keep making it about the people and not so much about the dollar and your referrals and overall business will continue to prosper. 

BP,

I know that many members have used private money and I want to fund a deal that I have in the works.  I only need like 30% of the value of my project.  From anyone's experience will a private lender risk lending such a small percentage.

Thanks guys for all the feedback,

Based on what I'm hearing I need to have the client take the amount that she has and use it as a down payment to leverage more cash because this thing can go way over budget and it's better to be safe than sorry.  I was thinking about finding some private cash, because the client has about 75-80% of what she needs to get this done but not the credit, and borrowing the additional 25-30% so that we can have a cushion.  On top of that I would need to have some type of moratorium for about 6 months on the loan.   Does anybody have a guy?

I have a client that has purchase the full building plans for 2 lots that she owns in Elgin Texas.  She is looking to me to help her put together the right team of experience contractors and subs to put her home together.  Her budget is tight but I am really looking for a consultant.  

I'd like to know if there is anyone on BP that has taken on a similar project, if so what kind of stories can you share about your very first one.  Im grabbing quotes and have meet with several contractors from foundation layers, electricians, general contractors and framers doesn't seem to intimidating but I shall see.

The one question I would ask is are you a cash buyer or are you financing.  I would also want to know if you are looking for buy and holds or flips.  I would want to know if you need help with contractors or do they have a team.  Other questions you can expect is whats your criteria as well as what area are you focusing in.  I suggest that you give feedback to the realtor whenever she sends deals your way whether your interested or not so that she can keep you in mind whenever deals come her way.  I hope that helps.

I just finished with a project where I had to use my plan B handyman.  He is cheaper than any reasonable contractor and is reliable.  The one draw back is that he is really really slow. If I would of paid 500-700 more I could of had a job done in hours as opposed to days.

From past experience I know you get what you pay for but the time that it cost me was frustrating.  The job looks good but I could of been on to some more lucrative things.  I would like to hear from the members what they value more.  I need to relieve some steam because that extra money I saved may not have been worth the piece of mind.

I had a situation once when a tenant relied on her elderly mother who was on the lease.  Her elderly mom had a retirement check, social security etc...  I figure with the moms income and the tenants that they could cover all the expenses at ease.  Needless to say the mom passed away and things went down hill.  I ended up having to evict the tenant.  Two tenants after that a couple had decent income, but their dad was retired military etc... and at 75 was bring in 3k on retirement he was on the lease as well.  I had to frankly ask if they had life insurance or if in the event what plans did they have to make the payment.  I kind of felt bad for asking that but am I wrong.