All Forum Posts by: Rob Hakes

@Larry Fried and @Clayton Mobley 

Thanks for the solid input and advise.  I will keep that in mind.  

Hello All-

I have been looking into buying some properties with a turnkey company.  From what I see, correct me if I am wrong, most of these turnkey outfits are selling their rehabs for quite a bit over 'retail' value.  It seems that they are valuing the property based on potential income rather than market value.  Though it limits an exit strategy, I can swallow that.  

In your experience, how would the lender handle the appraised value? Would they look more at the retail value or the value based on income potential? Would I be required to pony up a bigger down payment to bring the LTV to where the lender needs it?

This would be my first turnkey investment so any input and direction would be great.

Thanks

@Brian Christensen - I have looked into doing the same thing. It probably all depends on what the particular city allows. I live in Murray and they now allow legal ADU (Accessory Dwelling Unit) aka basement apartments. There are a lot of parameters to be met to actually make it legal (under 1000 sf, proper separation, limited number of tenants etc). I currently have a basement that I rent out, but don't have it 'legal'

I would be curious if you could find a builder willing to go to all of the headache with the city to get the plans approved, and get it zoned that way without it being too expensive.  I am not sure the legalities of the apartment over the garage, but would be interested to know.

Awesome idea for some easy cash flow.

Welcome Coco!

I have been wondering the same thing as well. I think for my own analysis i would include the CapEx so I knew what my true return would be. In doing some reading it looks like CapEx gets separated out from operating expenses because it is taxed differently. I think the IRS views CapEx and regular maintenance differently.

Let me know if that sounds right.

Thanks for the reply.  That sounds like good advise.

I have seen a few deals presented by the borrower that have awesome returns, but are quite lacking on the details.

I am curious what you mean by 'no take-out' for your loans, I have not come across that term before.

@Bob Malecki Bob- I would also be interested in any materials you have on note investing.

Thanks

@Darren Eady Could you send me some due diligence information as well?

Hello BP! I am a long time lurker, first time poster from the Salt Lake City, UT area.

I have been studying many different aspects of real estate investing and am wanting to get started on the lending side.  I was hoping to get some input on the basics of being a private lender.  Does anybody have any input for a regular dude that wants to put his money to work?  I am wondering

-who are the best players to network with to find good projects? Loan/mortgage brokers/?

- what laws do i need to worry about as a PML?  do i need to worry about usury laws?

- What are some common pitfalls that a lender finds themselves in?

-What are the market rates that Lenders charge for a short term deal?

I only have a little bit to probably do one job or a portion of one job at a time, so i don't want to lose on my first deal.  I would be looking at primarily doing short term deals (fix and flips)

Any feedback is appreciated. Thanks