All Forum Posts by: Steve Hall

@Casie Nicholson Impress them! If you sent me a 15-20 page PDF with your personal income statement, employment status, education, skills, the property or properties you are considering, your calculations and projections, your rehab estimates from contractors, local comps, appraisals, estimated ARV, what you plan to list it for, who your realtor or broker is, your 5 year plan, etc. I would definitely be impressed and consider funding your project. Make sure your document includes how much you intend to put down, and includes the source of funds with verifiable documentation.

I might ask questions like, why flipping vs house hacking, SFHs or MF? How long have you thought about this? What have you done to educate yourself on flipping?  How much work do you intend to do yourself? If all of this is already answered in your PDF, you'd blow me away, and I would have to look for reasons to say no, rather than look for reasons to say yes.

BTW, I just re-read your post... If "no money" literally means $0, then don't even consider talking to a private investor. Start saving $1,000 a month, and plan to start your investing in a year.

@Bradley Rieger 

If you want sound advice, we need a lot more information about your current situation:

What does your "contracting company" do? How did you give 100% to your new business in 2017 and 2018 while still in college? Do you have employees? How does your P&L and balance sheet look for the 18+ months it's been in existence? Is your company profitable yet? What are your skills? What is your degree in? Where are you living now (with mom & dad, renting, etc)? How much money have you saved up for a down payment? Where do you see your self in 5 years?

@Arnel Ackar

1) Write a bio that includes the phrase "I'm looking for partners to tackle pre-forclosures". You currently have no bio!

2) Join BP as a Pro. If you can't afford $40 per month investment in your future, you're not a serious investor.

3) Sign up to receive keyword alerts for anyone talking about "partner" and "foreclosure".

4) Search the members area or search all of BP. (As a Pro, you can filter the results.)

5) Post an awesome deal (with lots of details) and then say, "I'm ready to move on this deal, but I'm short $20,000, what do I do?"

6) Be mindful of your posts. Before I partner with someone, I read their bio as well as their recent posts / blogs.

Every property needs work when you acquire it. If the numbers work for you with the 40k sewer tap expense, then go for it. My guess is that the 20 acres will be a liability unless there is a way to subdivide and sell of most of it. Did you check zoning? How many units will that 20 acres support? Can you raise the capital to fund a project that large?

FWIW, properties that are stale always have a reason. Figure out that reason, then price it in.

My first question for you @Ariella Sherman would be WHY do you want this property? Does it have a great cash on cash return? Do you think you can flip it? Are you trying to house hack a 5-plex?

I don't know the Chicago market, but $175,000 per unit is too high for my interest. Have you looked at any comps? Unless you showed me some numbers that made sense, I would instantly be leary of this deal.

@Reeves Cannon I think no one has touched this because you've barely given any information necessary for an experienced investor to offer you any sound advice. Try explaining why you want this house, what its really worth, how you know this, what you plan to do with it, etc. If you want a helpful answer, you have spend more than 30 seconds writing your post, and you have to tell us EVERYTHING you know. We can't read your mind.

Why isn't there any debt service on those 3 SFHs? If you get a portfolio loan, pulled out 80%, with the cash in the bank you could have purchased the $180k property.

Every deal is different, and the details are for you and your partner to negotiate. Make sure you have all those details worked out before you go making offers on properties. With a partner, you will need an exit strategy. Have you thought about that yet? You should put together a very detailed proposal for your partner. The more you have planned, the easier it is for him/her to say yes, and the less likely they will negotiate each little detail.

If I were the partner, I would base the split on how much cash you brought to the table. Your labor is only worth what it would cost me to replace you with, and if you don't have property management experience, then I wouldn't want you doing that anyway on a MF.

Lastly, acquisition fees? Unit this is a large apartment complex, I wouldn't even bring that up to a partner.

Read up on Cash on Cash return and always consider this before making any investment.

My primary residence is in Florida, and this home is in a Land Trust where my attorney is the Trustee. I have contacted traditional lenders to try to get a HELOC, but they all want me to change the Land Trust to list my name as the Trustee before they will give me a HELOC. I cannot do this because I am a high profile name, and my name and home address would then become public record in my county records.

Does anyone have any creative ideas on how I can get cash out of my personal residence?