All Forum Posts by: Scott Steffek

Nathan,

I'm looking for an LTC as high as I can get. This endeavor will be ongoing, as I mentioned in my ad. I'm open to a loan or a partnership, where we share the profits. However, I have had several responses with outrageous numbers. I'm certainly not going to be borrowing $750k to $1M every single month and pay ridiculous points and interest rates. This is a win win for all parties involved. I already have a source to sell the properties. My exit strategy on the 67 house package is to flip them on the open market. I would be purchasing the properties at a low percentage of ARV and the icing on the cake is that the properties are turnkey and tenanted.

Dave,

I respectfully disagree with what John said about the "weasel clauses." I can understand why he said that, but I'm not a typical wholesaler. Subject to partners approval is a clause I use for several reasons. The main reason is that if the property is selling for a good price, I don't want anyone else to tie it up before me. Is that selfish? Absolutely and I don't apologize for it. I'm here to make money. I don't put contracts on properties unless I'm 90% certain I have a buyer. I'm not like most of these wholesalers who will tie up anything and everything and hope to God they sell it. To me, that's dishonest. Also, homeowners add "weasel clauses" as well. Subject to satisfactory inspection, subject to financing etc. When I tie up a property, I ALWAYS tell the homeowner that I may not be the actual buyer. They're aware of that before they sign the contract. The last thing I want to do is lose my EMD, so I use that clause. You know as well as I do, that deals fall apart for millions of reasons. Subject to my partners approval is just a "catch all" and it works well. So you can call it a weasel clause all you want. I call it smart business. By the way, I've lost quite a few contracts because people don't want me assigning the contract. When I talk to them, guess what? Most of them tell me it's because they've already dealt with some unscrupulous wholesaler who didn't sell the property and they were upset and didn't know they weren't the buyer. At least I'm upfront with the sellers and I think they respect me for it.

Mario,

You can reach me at: 219-308-0162 or at: [email protected].

Regards,

Scott

Daryl,

I'm already dealing with them.

Thanks

Michael,

Please send what you have in Indiana to: [email protected]

Thank you

I have an opportunity to purchase up to 67 sfr's located in various cities in and around the Chicago suburbs, from a bank. But first, let me tell you that I have a source for selling the properties at FULL retail price. The source I have, is purchasing anywhere from 10-15 sfr's a month, every month. I will be happy to divulge that source when we talk. The 67 sfr's are being offered through a bank. The purchase price will be somewhere in the area of $3.2M. It comes out to about $47.8k per door. Because they're all located in different suburbs, We'd be buying at about an average price of 65% of ARV. The vast majority of the homes are already tenanted and are turn key. There may be a few that need tenants, but overall they're rented. The bank has done an excellent job of maintaining the properties. There will be a few that will need some work, but nothing major. I have the option of purchasing all 67 or I can purchase as little as 20 of them. The source I have for selling them, is selling 10-15 per month, every month. So if we purchased all 67, that would give us a 5 to 6 month supply of homes to sell. Once they're sold, I'll be looking for a source to purchase 10-15 properties every month thereafter. I have 2 contractors for rehabbing and 2 property managers to manage the homes. Managing them is a requirement from my source. The homes also have to be turn key and preferably tenanted, before I offer them for sale. So having contractors to rehab them, is critical. My crews can currently handle 5 properties each, per month. We can expand if need be. This portfolio will not last long. The bank already has several companies that have expressed serious interest. I have the Pro Forma and I would need some paperwork to be signed, prior to sending it out. If you're a private money lender, then let's talk. Please, no brokers and serious inquiries only. I'll entertain an equity split for the right partnership, but a straight interest deal is preferred. However, I'm open to anything that is fair for both parties. Please PM me or you can reach me (Scott), at: 219-308-0162.

I have an incredible ongoing opportunity for the right private money lender. I need a lender to help me purchase 10-12 SFR's a month and every single month thereafter. The properties will be located in the Chicago land area and also Northwest Indiana. I will have a solid and very consistent source for selling these properties each and every month. I currently have a "complete" team to turn the SFR's into turn key properties each month. I have 2 solid contractors and I also have property managers, to manage them. All of the SFR's will be buy and holds. I will gladly explain the source to you privately. It's a proven and private system. I will supply you with all of the necessary details that you would need, once we begin talks. The current projection of funds needed is between $750 and $1M a month. This is ongoing, so I would be looking at borrowing within that dollar range, every single month. I'm projecting your funds being returned within a 90-120 day time frame, from start to finish. I feel that that time frame is slightly longer than what would actually occur, but I think it's a good starting point. The properties we would purchase, would be SFR's that range in price from $50k to $70k. Rehab costs would range anywhere from $10k to $30k. Our goal is to purchase homes that can be rehabbed in 6 weeks or less. We would prefer a 30 day time frame, but we feel 6 weeks is feasible.We're targeting a purchase price of 65% of ARV or less. I currently have several sources for acquiring off market properties. The properties we purchase, will need to have a minimum of an 8% cash on cash return. All of the numbers will be "run" before we decide to purchase. Our contractors will also provide a detailed scope of work on every potential property. We will be selling all of the homes at full retail price. I'm willing to do a profit split, but would prefer a straight interest deal. However I'm open to any type of fair deal and willing to work something out, for a person or company, that is willing to work with me and get this started. I'm not interested in funds for one month. This needs to be each and every month. I also have an opportunity to purchase 67 sfr's from a bank, that meet my buy and hold strategy. If I can find a partner to purchase these with me, I won't need any loans until these 67 have been sold. The properties are all located in the south suburbs of Chicago, which is my target area. At a $3.2M purchase price, we're looking at an average cost of $47.8K. Since the homes are in different cities and prices vary, the $47.8k purchase price is approximately 70% of ARV. The majority of the homes are tenanted and need little, if no work. Some of them may need things like paint and some small low cost work, but nothing major. The bank has done an excellent job maintaining all of the properties. I also have the option of purchasing as little as 20 of the 67 homes. If we purchased all 67 properties, it would most likely be a 5 month "supply." Once the properties are sold, I would need to start purchasing the 10-12 homes a month, I already discussed. I would like to get the ball rolling on this as quickly as possible. Please, no brokers. I'm only interested in working with private lenders that have a successful track record and are willing to take a small risk and receive a large reward for their efforts. Please contact me via BP or you can call me (Scott), at: 219-308-0162.

Jordan,

Welcome to BP. My business is out of Crown Point, so we're neighbors. We offer investors properties, rehabbing services and property management. Let me know if we can help you. Best of luck to you.

Jennifer,

The only way I would ever pay my contractor 50% upfront is "NO way". I've been doing business with him for years and I wouldn't give him that much upfront. In my opinion, there's no need to give a contractor 50% upfront, unless there are "special" circumstances. That's just too high of a percentage. A special circumstance might warrant it, but it would have to be a very special one. We're doing a rehab right now. It's $15k and will take 3 weeks. The 3 week time frame is a longer time frame than normal, because of some special things we have to do to the house that are labor intensive. Anyways, he's getting 40% upfront, 30% after 1 week and 30% when the work is done. So the last 30% is given to him after we have done an inspection and approved all of the work. Make sure that you do a thorough inspection before the last payment is made. That's critical. I guarantee you'll find small items that need to be addressed. On the other side of the coin, some experienced contractors will ask for 50% upfront if they don't know you or you're new to the business. They don't want to get ripped off either.  I've been ripped off more times than I care to remember. But keep in mind that contractors also get burned by their clients. It's a 2 way street. Also, contractors may put a clause in the contract that relates to additional funds. My contractor writes in every contract that I understand that he may come to me for more funds, if it's warranted, up to 15% of the cost of the rehab. Once they start opening up walls and such, they will almost always find unexpected problems. My contractor will fix the small problems without asking for more money. He builds that into his price. But typically if it's over $200, he comes to me for more money. He has to document the problem and show me receipts that prove it was fixed. My contractor has the work all scheduled out almost day by day. So, if the plumber is there and he finds an unexpected problem, he just fixes it. Then we deal with the money side. This saves all of us time and money. We both trust each other and it works out well. I hope this helps you. Best of luck.

Christine,

What price did you pay for the properties and where are they located? I have investors I work with that use HML's.