All Forum Posts by: Richard Gaston

Oh and I am doing a Google Search on them right now but I can not find any information on them via my search. I am trying to be real cautious here. I could use the loan but I not to sure about this company, how does the old saying go? If it sounds to good to be true???? I question everything when it comes to MY business, I don't want anything ruining a good thing. They got my info (email info) from an Angel Investment site I am a member of, asking for a Loan to help with my business, I was looking for a Bootstrap Loan so I can get my business up and running, well running anyways lol, I did get it up and going lmao but I was looking for a bootstrap of $50,000.00 to get my business running, seeing I have decided to do fix and flips I need equipment, supplies, a pickup as well as a trailer to haul all the bigger stuff around. I will see what happens.

Has anyone ever hear of a business called Phoenix FCE Capital Limited, they are suppose to be a private investor/Angel Investors. I got an email from them saying they can help me with 100% Financing, which sounded good. I was thinking of buying this one lead and figured an approximate 75% ARV on this one house, keeping the other 25% for a profit margin. Basically I tested the waters, they sent me an application via my email, very basic. I filled it out and sent it back asking for $175,000.00, you with me so far? I just got an email back from them saying I was approved for the $175,000.00 plus a 5% interest rate (btw, they said they will charge me 5% at the start, sorry forgot to mention that) which got me in a dather (confuse for some folks who don't understand) Here is my figures, see if I am wrong. $175,000.00 * 5% = $8750.00 which added in my total payout should be $183,750.00 They figured $175,000.00 with a 5% interest rate @$4,775.71 with a total payout of $179,775.71.

I don't mind the discount but there is something wrong here, I gave them my SSN, so if they did a credit check they would've known my FICO Score is 580, they did not ask for any property information, I was figuring an approximate value seeing that I did not get all the numbers in yet, but I figured an approximate value at $220,000.00 for the property with a 65% to a 75% Loan on the ARV which gives me some leeway and I got approved? Granted I have to pay the loan back within a year but I figured that, I asked for a year, figured I can do a fix and flip and sell the property before a year is up. They are even asking for monthly payments??? I could do that but I thought it would be the other way around, actually I figured once the loan got approved I close on the house, they give me an upfront draw to give to the contractor and a draw after each project was done until the job was finished. If the Hard Money Lender didn't do that I was going to do that myself, good way to keep a budget as well as keep the contractor honest, don't get the final payment until the job is done. Now does everyone see why I am confused?

@Faiz Khan Have you joined your local REIA (Real Estate Investment Association). I would advise that you do, then you can network there as well to other Investors, you also can use Craigslist to advertise the house, or try a RE Agent which you also can find at your Local REIA. There are many ways you can get the word out by networking. Don't forget your local paper as well to advertise :)

The other way is selling the contract. Find the property, get the comps, negotiate the contract get the contract signed and then find an Investor who will buy the contract basically at a mark up of what you negotiate the price. You can find topics as well as podcasts here at BP. Bottom line its called Wholesaleing, buy low sell low, this way you can get your funding that you want. After you get your feet wet so to speak you can then get into full scale fix and flips. Also if you have not do so, join your local Real Estate Investment Association (REIA) in your area, this way you can meet other individuals of like mind as well as Real Estate Agents as well as Investors. You can network here as well as at the REIA. To be an Investor it won't happen overnight, not like some GURUS claim, it will take a lot of hard work and networking but you can make it happen. Have a great and profitable day.

@Wayne Brooks Sorry but here in Washington State a Real Estate Investor does have to have a General Contractors Licenses as well as be insured and Bonded. Its a Law they passed recently due to numerous complaints about shoddy rehab jobs which got blamed on the Investor and not on the General Contractor who did the job, so to insure that a future homebuyer who buys a home from an Investor, then the Investor can be held liable for any shoddy workmanship which is beyond me as well, I thought that is what the preinspection was for to see if there is any problems before the homebuyer can purchase the home, IMO I think its a stupid Law here in Washington but one we must comply with if we want to do fix and flips.

@Olivia Story If you're new to Real Estate Investments and want to hold off getting a General Contractors license there is another way, you can still look at the property, crunch the numbers like you would do if you were going to do a fix and flip but instead, once you get the contract to purchase you may want to consider to wholesaleing the property to another Real Estate Investor, there are courses here that can walk you through it but bottom line is you do most of the work finding a motivated seller, negotiate the contract, get the contract signed then flip the contract. I am still new at that but there are topics as well as E-Books and Podcasts that can teach you how to wholesale here, this is a wonderful site to get all the information you need to learn everything you need :) These are wonderful people here that can help if you need any questions answered :)

@Stephanie Dupuis I can not seem to be able to, for some reason Bigger Pockets can not find your name is the message I am getting (Could not find conversation recipients) if you can PM me and we'll go from there. Thanks

Ok, an Update on the deal, he finally showed up where I work at, got the address to the house so my General Contractor and I can look at it, Its up in Bremerton, WA for any Investor that lives in Washington State. I asked one question, I asked what is the lowest he would take on the deal, he told me which I am not going to disclose because I may just flip the contract for $135,000.00. But basically his answer told me two things, one it really needs to be rehabbed and the second it has a high Equity. My General Contractor and I are going to look at it Tuesday Afternoon to see the extent of the repairs, it has been zoned as a Multi-Family Duplex so basically the end buyer can live in one part of the house and rent the upstairs seeing its set up as an apartment to pay for the mortgage. Wife said it was to far for us to live at lol, go figure but I am not set up to do an extentisive rehab even if I live in it myself. But I am sure the numbers are justified from what he told me, it has been appraised As Is $150,000.00 he lowballed it way less then that, and I am sure I can get $135,000.00 just for the contract and the investor can still make a nice healthy profit margin even after doing the repairs.

Now my question though any investor in Lakewood/Tacoma, Washington area know of any good Title company or Real Estate Attorney that does Double Closings? Because if the numbers work right I should be able to close on the deal for what he is asking, in fact I was going to offer him what he lowballed at lol and he wants to close fast. Sounds like one of those Rare deals everyone keeps talking about lmao.....High Equity and a fast closing lol....

@Mike H. Thanks, I will do that. From what I have seen, in just my county alone I have found a lot of good deals but hesitate to put a bid on them, except something for myself, found quite a few of them too lol. And the prices seem to be decent as well, looks like a good markup if I can figure out how to do, even if I just do fix and flips on them. Heard a Podcast that describes just that, buy a HUD Home to fix and flip at FMV, sounds decent enough.

In other words I find the home, put the bid on it, win the bid (if luck holds out) Find a Seller, Pay for the Property then turn around and sell the Property to a motivated seller at a higher markup, is that about sums it up?

@Wayne Brooks Sorry I should've clarified the site, its the hudhomestore.com which I am a member there, decided to sign up seeing I am looking at houses there. Still trying to figure out how to wholesale the properties as an investor, I know one has to have a broker, but seeing you have 48 hours to complete everything and show POF's etc etc, how can one wholesale in such a short time????

@Shawn Thom Thanks for the info, I haven't seen anything there either, but my question is why would they offer a property for a dollar, I am assuming if you do find one (if they ever post one) you still have to pay closing costs as well as full Real Estate Taxes on the properties value, not what you paid for it. And if you do pay Brokers Fees as part of the closing costs, how much does the Realtor make on such a low deal? LOL, I can not see any broker doing a deal to get paid 3% (or even 6%), that would mean they would get paid 3 cents (or 6 cents lol) not even worth it lol...