All Forum Posts by: Chantél Fielder

Hi there @Allen Lucas ! No those aren't his initials...provided that he gave me his correct name!

and thank you, @Derald Everhart !

@Derald Everhart here is a link to the video (he explains it way better than me!) and the link to the rehab valuator and spreedsheet is there too or go to www.rehabvaluator.com. The video link is  http://youtu.be/x5_Bium6J8I

@Bill Gulley Thank you for reading and responding! I have chosen persons with longstanding credit history who actually own their property as my first options as they too know the risks involved and can be sure to choose the right option in the long run. They would be able to provide insight to cover hiccups and the unforeseen, having navigated through it before without missing a beat! I agree 100% to keep it all business as I want them to understand that I value them and any contribution they could make so I will definitely be sure to approach as a business professional with a strategy fo them as opposed to a family member/friend looking for a loan. Thank you for your advice!

Hi @Derald Everhart thank you for reading and responding! The video I viewed on YouTube gave 4 options for both borrower and lender to consider and agree upon.

Option 1- 4% interest rate on the loan plus 4pts to be paid upfront or negotiated into the loan.

Option 2- 6% interest rate and 4pts to be paid upfront or negotiated into the loan. 

(Both options 1 and 2 are good for the private lender that has no cash reserves upfront and could use the points paid to hem initially.)

Option 3- Debt with equity. 6% interest rate with payments deferred until the end of the project and 25% of the flip profits. (Benefit = the property value increases after the rehab, they receive interest and profit split BUT the profit split happens only if you make a profit.)

Option 4- Debt only. Lender provides all money, there is no interest rate and you both split the profits 50/50.

Options 3&4 pose the most risk to the lender are should be tailored and communicated properly. Using a HELOC for either of the four options via persons you know and who know you and through persons with equity in their property and good credit seems like a viable option for one like myself who is new and experiencing road blocks from hard money lenders. All information and options would be accompanied by a detailed spreadsheet (which the video provided a link for) that would keep the lender advised and informed of each option and which they feel would be best for them in the agreement.

@Daniel Loy thank you so much for your reply and I apologize for the delay as I didn't get the notification! This information is perfect! Thanks!

@Jesse T. I can not. I like to believe that he would be telling the truth as RE in our area is pretty small, but I have no way of knowing. He does have a network that speaks well of him...the ones I have met so far.

Hi there!

I was recently started working with an investor/wholesaler that was looking to do some JV's. Things were going well in the fact that he has experience, contacts and properties that I did not. I like to work alone and find my own properties as I have a specific way of working though I can easily adjust to others as well. Here lies the question!

This investor/wholesaler says he has hundreds of properties and has also sold around 50 properties last year. He gave me a list of 19 properties he has under contract and said that we could split the assignment fee once they are sold to either of our buyers lists. I agreed and am not really looking for much out of it as I have my own properties and still do my work on the side. His list was just addresses. (Is this normal??) I inquired about this as when I list properties, I give as much info as possible knowing that it can aid in selling to the end buyer, but also because the buyer will do their own due diligence as they see fit. I created time to research his properties as he stated that he had so many that he didn't know the information about all of them and never needed to. I ONLY post ads and share list when I have at least the bare minimum of info (room#, bath#, sqft, ARV) as I feel this is courteous, professional and will not waste a buyer's time if the property doesn't have their requirements. Some of the properties were not listed with all of the information so I researched comparables to come up with additional info.

There are properties that he doesn't know if they are vacant, or can be accessed. Is this normal as well? I see this as a problem as one like myself can not give proper damage information to an interested investor if neither of us have access or have seen the interior of the property. (This is also a safety factor. Is the property a former crackden? Is is a cave for rats? Was is a meth lab that could kill us all if one of us sneezes?!! All real concerns that flashed through my head.) He mentioned he had the paperwork that would allow him to "break into" vacant properties. I do not "break into" anything! I am a newbie, but have no desire to go to the slammer! He mentioned that seasoned investors do that all the time (no need to admit here on the net, just want to make sure of the normalcy of all of this!)

I am new. But I have the utmost respect for the investors and fellow wholesalers on my buyers list and contact list and do not feel comfortable giving them lists of properties that I have no knowledge of. I just don't want to waste their time. I would love to know would is considered normal practices, even if they are not normal to me.

So my questions are:

Is is normal for wholesalers to have houses under contract but no general information to share with interested investors?

Do other wholesalers/investors generally buy properties without basic information aside of the address of the property?

Is it normal for a wholesaler/investor to carry tools in their trunk to "enter" properties that they may be interested in?

All insight and help is greatly appreciated!!

@Kirk R. now I understand! Yes, I see the value in securing the property before contacting the contractors. It prevents wasting their time as well! Thanks!

My apologies, @Kirk R., I do not understand your post. Were you the seller or buyer? My contractors are still currently on board and are awaiting my communication from the seller so that we can move forward. In the meantime, we are focusing on another property.