All Forum Posts by: Paul McCormack

Great comments everyone. I am still evaluating the guru because I REALLY like the model, yet, it is highly unlikely that I will proceed

I would love to provide the name, but I don't think that it would be fair to post and not allow the guru the ability to respond to any comments.

Yes. Five figures.

Nicely put. I really think the guru has very good intentions, but I really cannot stomach paying such a fee upfront and splitting profits.

Great feedback gentlemen.

I strongly believe in caveat emptor, but I cannot stomach being directed to perform certain steps, then splitting the success once they are profitable, and suffering the consequences of the advice if it does not work out.

Taz, I truly agree with your comments, I suppose the liability became even more galling given the profit split. Absent the profit sharing, I would not have issues so much with the liability component.

Mike, the interesting thing is that this individual actually presents at the local REIA. That said, I already have three properties, two of them I purchased with the advice of free mentors that I met in the REIA.

Again, great feedback, nice to have feedback from my online mentors :D

I recently evaluated a mentor agreement with a nationally recognized expert in SFH investing. Let me state upfront that mentoring and expensive courses are not something that I believe actually work, yet this program really caught my attention.

The contract contains a profit sharing clause that requires 50% of profits associated with any investment during the mentor period to be given to the mentor. Further, if any losses result from the mentor's advice, the mentee is 100% liable. The mentor is not responsible in any shape or form.

My question - is this normal for the mentor market? I do not agree at all with either clause, but I need a sanity check.

Taz,

I really appreciate the feedback. I understand many of the financing options available for SFH, but commercial is really a great unknown for me.Thanks for helping to clear up some of the mystery!

S007

Hi Taz,

I am curious, I too invest in Decatur, GA (SFH). Did your friend secure funding with B of A that included an allowance for rehab, or did he secure a straightforward loan with 25% down and paid for rehab out of pocket?

I am interested in apartment complexes but I am getting mixed messages from the banks re loan structure.

Any comments are much appreciated.

Scottish007

I just noticed the broker fee mention in your post. Unless you are really in a bad position re your credit score, you should receive plenty of interest from lenders. I would not pay the broker fee if I could help it.

Hi Dawn,

Believe it or not, Quicken Loans. Out of curiosity, I used lending tree. Quicken contacted me today (be prepared, they are very aggressive). I have found no shortage of lenders that will do refi with no cash, Quicken being one.

I hope this helps.

Scottish007

Hello Everyone,

I want to refinance two of my investment properties. Both have been owned by me for less than 6 months. Both were bought for significant discounts, rehabbed and rented. I have talked to about 10 lenders. They ALL have different stories. Some say they can do a cash out refi, some say that they cannot refi period. Others say that they can only do a refi with $1,500. I am confused, but the lenders seem even more confused!! :roll:

Has only done a cash out refi in the last thirty days? Any guidance is much appreciated.

Scottish007

I would be VERY sure of my numbers before I moved forward.

In fact, I am not sure an HML will front this much cash unless you have a proven track record. There is an HML for almost anyone, but with bigger numbers, the risk increases. I hope the deal works out for you.

If it happens, wonderful! But.....the best laid plans have often been stopped in their tracks (wee funny) due to special interests, the uneducated and highly capitalized and the truly green yet clueless environmentalists. Love to see it happen, but experience tells me that it is many years away...... :beer: