All Forum Posts by: Taylor Chiu

@Ryan Collins

Thanks for the info. What drawbacks do you see with the HomeStyle loan?

I'll agree with @Frank Wong that there are people who succeed with MLMs. In the end, those with determination and good sales skills will find success. I admit I did not put in the effort necessary to make it work. 

That said...I stick by my statement that companies that value the system over the product are crucially flawed, and should be avoided at all costs. Is it possible that a MLM can value the product over the system? Yes. But it's very difficult, since the structure of MLMs makes it almost necessary to overprice their products to cover the costs of the referral structure.

I've done 2 with penfed recently. Got 80% ltv. Smooth and only took a few weeks.

@Rasiel Algaze As someone who has done a few network marketing (MLM) companies in the past, here's my advice - RUN AND NEVER LOOK BACK!

Why? Sure the people at the top of these companies make money, but it's only possible because most of the people at the bottom of the company are guaranteed to lose money. 

My biggest beef with these companies is that it's not about the product, it's about the business structure. No one buys $100 fruit drinks because the drink is really worth it. They might delude themselves into thinking it is (trust me, I was there), but in reality they pay that much because they think they can make money off of the business. 

Whenever a company is more about the biz structure than the product, you should turn the other way. And sadly that's how most, if not all, of these MLM's operate.

@Candace O. Congratulations, that's a huge step! Care to share any details on the deal?

@Account Closed - It's unlikely, assuming your private lender isn't heavily involved in real estate investing themselves. The way you can avoid the situation altogether is to get the property under contract before bringing it to your private lender. Is that a possibility?

@Chet Mostue - Do you mean how you can post a flip that you have completed for sale? If so, then you could post it on the BP marketplace (you'll need a paid membership, though). You can also post it on Zillow, Redfin, Facebook marketplace, craigslist, etc...

@Ryan Collins - I'm not familiar with the HomeStyle Reno loan - what do the terms look like? 

Other options could be hard money or private money. For hard money, you'd be looking at around 10-12% interest with a few points up front. 

Rob - That's a tough one, I've been in that boat before. How much under market rent do you think your current pricing is? 

If it's not huge (15% or more), then I would just chalk it up to experience and move forward with the current rate. I've been on the other end of people listing something for a price, and then jacking it up out of nowhere, and that's never fun. 

If it's a large amount though, then it's worth it to make a change. You could tell everyone frankly that the dynamics of the unit have changed and that the amount you are asking will be going up. You'll probably lose most of the leads, but enough new ones will come along to fill your unit.

 Selective because of the noise, or because of safety concerns? If it's safety, then only allowing tenants with 3x income/rent, 650+ credit score, and clean background check should do the trick. And frankly, those screening terms should be the case without a baby as well.