All Forum Posts by: Rick Pozos

I have done a couple in the last few years, but there are so many more rules than before. Interest rate rules, no balloon, if you do more than 3 per year you have to get a loan originator to go through, and on and on.

It is still a viable option, but many rules that you NEED to know about in order to stay within the law. There is an atty who does closings in Austin for wraps. He seems very knowledgeable. The next one that comes my way will definitely be closed with him, T. Alan Ceshker.

You can not be shy. Meeting investors in your area is the most valuable resource. They will be able to help you and you can take them to lunch or hang out after the meetings.

if your seller is going to do 90 or 100% owner financing, your private lender should be ok with being in the second position if they are only lending 10 or 20% of the purchase price. 

I would let the seller do most of the financing and try to pay most or all of the rehab out of your current funds if you can. 

While I love to do the no money down thing, the seller financing thing is great, especially if it is at no or 3 or 4% interest. I dont think private money is going to be below 10%.

Partner with someone who has the big bank statement. If it is a great deal, you will only make half the profits, but half of a great deal is better than all of a deal that did not get done.

Realtors usually deal in the Retail market, not the wholesale market. 

Marketing. Driving for dollars. Friends and relatives, let them all know you are looking for someone who NEEDS to get out of their house. Who would sell you a house at 60-70% of market value?? Only someone who is feeling some kind of pain. It is your job to find the owners who have some pain so that you can be the one to give relief.

Private lenders are almost always acquired through networking. Friends or friends of friends. The more you are out there networking with other investors at the local REIAs, the more chance you will come across someone.

Ask some of the lenders that you already have if they know anyone else who has money to lend. People with a bunch of cash usually have friends that have a bunch of cash.

I would definitely let all your friends and family know what you are looking for and spread the word.

I was in a similar situation a couple of years ago. I had two sisters and one wanted out, and one wanted to rent. I love my sisters and we get along great, I just did not want to be in business with them. I wanted to continue loving them, lol.  

The cash out sister took a note for one property from me, she took a note from her sister for the other property. Results, I have a property with a small note, my sister has a property with a small note, 3rd sister has a nice little income, and we gave her a little cash up front. We worked out the details of value, down payments, interest rates for loans, balloon, etc. and then put it down on paper. Everybody was happy and we dont own anything together. I get to do what I want with my property and so does my sister.

I agree, with all from Latara G. My best answer is to partner with an experienced flipper. If you can get a great deal, bring in someone who has done it and watch them do their magic. Help out in any way possible, of course, and ask questions all the way through the process. After you can say that you have one under your belt, it should be a little easier to find some money because you are no longer inexperienced.

I believe San Diego has several REIAs. That should be your destination for lending sources. I am sure that there are 20 to 30 people in each REIA that has money to lend. You dont need to buy a course on how to find lenders, I just told you how.

Also, you can do a search for San Diego here in BiggerPockets for other members in your area. You can see what they do. Some are going to be private lenders. Friend them and take them out to a nice lunch. If they cant help you, I am sure they have someone who can. How is that for free??

I would first worry about getting a deal done. An entity should be something that you start to think about after you have done a couple of deals. Focus on the property, ARV, repairs needed, contractors, and marketing strategy to sell. You already have enough to worry about without having to worry about entities.

With that said, yes it is a good idea to have an LLC or a C-corp, but you have to have money to set them up. It is good protection to have and I highly recommend them to everyone. I guess just not right off the bat. You do need to protect yourself from this litigious society that we live in. An attorney get get these set up for you, usually about $1,000-$2,000 for each entitly.