All Forum Posts by: Jim Keller

This site is a good place to find lenders, I have.  Linked in is another good place, I have done that also.  I found one of my biggest investors on Craigslist.

My larest holding with a private lender is over $3,000,000 and I meet him at a real estate club meeting.

When it come to working with hard money or private funds you can't be a secret agent.  Everyone needs to know...... everyone!

Good luck

Jim

I am just a few years a head of you. I would recommend attending every real estate meeting you can find in your area and even road trip to a city that has a good club in it.

I made a small post card that explains my needs in the way of mezzanine type finance.  Other people call it gap financing, what ever the name you need there cash to finish your propject, and will pay them handsomely. 

Here is how it looks:

80% 1st mortgage 

20% cash for purchase 

$4,000 for closing cost

$30,000 for fix up

So based on a $250,000 purchase price the 1st would be $200,000 leaving closing cost, fees and your $50,000 down payment. And the deal is yours.

I work with 4 different cash investors that give me all the cash or about $85,000 in this cash, which includes the repair cost.

Presently I have 14 going, like you said I will make 20k on some or as much as 100k :) People on the site will talk about "skin in the game" your contract to purchase and invitation to them to make a huge return on there money is your skin in the game.  Don't let anyone tell you differently, just move on until you find a real investor.

Jim Keller 

I would attend the Inland Empire Real estate Investment Club you can find it on Meet up, the 3rd wed. Of every month at the mission inn.

The have a open mike, let the room know what your looking for. There a many wholesaler type investors there that will help you you get what both of you want.  I have done many deals from the bar at the end of the meeting.

Those times are still here, I purchase home in Orange County and I focus on distressed property, for sale by owners wherever I can find them.

I have sold 8 homes this year 2017 all with an agent.  My guess is if you make a list of everything a good agent does for you and how importaint locking in a good agreement is, there fee is cheep.

Pay the fee and in the time you are buying with the agent go find a good deal for yourself.  

Jim

This situation is one I'm used to seeing.  The way to stop it from impacting your business is to have 20 your tracking at this level. 

Sooner or later you get 1 then 2 then 3, that simple.  It's the golden rule, they have the gold they make the rules. 

Get it out of your mind that the banks or big owners of homes have to be far.  There in it for there interest not yours.

I use PR every day, there is some indicators but using property radar correctly in my view means just getting you started in the right direction.  

I have made $100,000 on deals I have located and purchased from PR, look at every 100 no'such as $1,000 in the bank.

Your welcome to call me for a good tip or 2, Sean O'toole at property radar changed our business.   Everyone needs to know how to work it.

Jim

Respectfully, I just never think like this...... ever! Stay on budget, and have a contingency plan if you go over. Time and bandwidth in your own mind is money.  My guess is the actions you have taken to get out of this self-made prodicament has cost you more than the money you saved not paying for the last 5k you need.

Whoever or wherever you can get the money needed to complete, sell, or rent and get the next one going is what I would recomend.  

We own 14 homes in the Southern California market that for the time being just keeps going up and up. We are getting $20,000 to $30,000 more per home than we origanilly planned, the market is that hot "in my market".

The party will end someday soon, believe me you will want to have done more deals.  On some of our deals we have made 6 figures, if I had to pay 10k for the last 5 k I would.

Wish you all the best, I get stuck all the time.  There is a good lesson for us all here, me included.

Jim

I was married September 13, 1986, my wife and I did our first flip deal in May of 2010.  We both wish we wouldn't have waited 24 yrs to get in the business.

Fast forward to today we have 15 active flips going own other units and wonder if the years of struggle could have been difforent.  We don't have regret I just wonder......

The things you put off today are just gone, if I could give us advice back then knowing what we know now.  I would say "DREAMS ARE GOOD, BUT YOU HAVE TO DO SOME ABOUT THEM"

good luck

Love this topic, I know I'm very sensitive about it because it limited me for years. I never understood it's the deal not the skin in the game. When I by at 50% of ARV everyone wins, when there isn't such a marginthere tipiclly isn't a deal there that simple

Don't ever give up, ever, ever, ever.

Jim

I don't like being so close to the sellers on a deal like this.... if you choose to do it disclose, disclose, disclose.  In California any of the attorneys I work with and get referrals from would not co-mingle a purchase with a client.

I also read in the comments the term SKIN IN THE GAME.  That's funny, my company searches for distressed properties all over southern California.  When we find one I have a list of people that are happy to put up all the money needed to buy, fix, sell or rent them, and the whole time I use their money and often don't give them anything close to 50% of the deal.

I'm not a big fan of rules, or limiting beliefs there is no limit to what can be negotiated between 2 willing parties. Last year we paid 1 investor over $180,000 I wonder if he sits around worrying about my SKIN IN THE GAME, or does he worry if I will go to the other investor.  Just something to think about.

The above investor above has 1.65 million on and off with us at any given time, and just writes a check and lets me take him to lunch.  Our plan is to double his position in 2017.  Good luck all.

Jim