All Forum Posts by: Account Closed

If they're putting up the cash they're essentially an equity partner. You can form an LLC and spell out who gets what when in the operating agreement like a little syndicate.

When you apply for financing, portfolio lenders will originate in the name of the LLC still. Conventional lenders will require you to apply personally and only use 1 unless you need two.

Back when I was brokering if partners came to me and wanted to do a joint loan I advised to put the financing in just one person's name if the numbers work since you'll double the number of financed properties you can have.

As long as you have check book control that might not be a bad way to go. But when you say there are some restrictions it makes me happy I don't have to deal with a custodian and have true checkbook control. That's the only piece that sticks out for me.

Jeff, what's your problem? I don't go to your investor's club and bash you. This says a lot more about you than it does about me or my product.

Thanks James. I appreciate that.

And I don't even know what bastardize means so I had to look it up. The dictionary says:
1 : to reduce from a higher to a lower state or condition : debase
2 : to declare or prove to be a bastard
3 : to modify especially by introducing discordant or disparate elements

Since bulk REO's parents were probably married at the time of birth, #2 doesn't apply.

So, I'm not sure that I've lowered it's esteem by debasing it or that I've introduced any "discordant or disparate elements."

I had a bunch of people asking me how to do it, I've done it so I created a course. A really cheap one by the way.

Jeff, I don't know you so please don't assume that I don't practice what I preach.

I'm always (not really) surprised that people are so quick to dismiss a strategy that they've never personally tried.

There are many "jokers and brokers" aka "compilers and mandates" in the bulk REO brokering space because they have no idea how to identify the true buyers and get direct access to the packages.

This course is a direct result of my personal success in this space and because there's another course on the topic that I thought was way overpriced.

The bulk REO strategy isn't for everyone but there are investors that are succeeding so "don't knock it until you've tried it."

Harrison, you have to go with portfolio lenders. Approach small banks and credit unions and negotiate a master loan commitment for the refinances. Include a detailed profile of your investor/buyer. I have some clients who negotiated master "take out" commitments with two local credit unions totaling $3.5MM.

The business plan has to be solid, LTV's low ideally 70% or less and the investor/buyers must be liquid.

You'll find blanket mortgages from portfolio lenders but they have to cash flow. Most bulk REO buyers raise and buy with private money.

NNN is not an issue since the deal is qualified based on the credit grade and lease term of the underlying (hopefully single) tenant.

I would go with larger multifamily next as you will have on-site management. Plus, the property income and guarantors (if needed) qualify primarily.

Credit cards are the only way to go right now and you have two problems - 1) your entity is less than two years old and you haven't mentioned anything about cash flow. Your holdings are highly leveraged according to commercial lenders that will make these types of loans.

All conventional lenders will have this rule. You must seek out and start building relationships with portfolio lenders who do not abide by Fannie/Freddie rules. Small banks and local credit unions are a good start.