All Forum Posts by: Tahra Wright

Yes, I agree with Andrew.  We have done this structure with all of our flips as we borrow funds from friends and family.  If you are having multiple people share in a first lien, you have to document that in the mortgage instrument and the note  and make sure they each acknowledge and agree to it in the note.  In the event that they have to foreclose they will have to work together to do so.

What you are not doing is creating a new LLC with all of you as members! That is a totally different structure. In the structure you need, they are lenders, so they are lending to you pursuant to a promissory note and getting a security interest in the property as collateral through a mortgage. The note should clarify that the interest accrues and principal and interest are payable at the earlier of the resale of the property or whatever the loan period is (usually 12 months). Hope this helps!

I ended up managing myself!  I’ve done it before.  We decided that once we have a few more then we’ll hire a PM.

Hey there!  I know of two good property managers in the Union/Essex county areas.  I was searching myself last year for a property I bought in Plainfield and they all told me they manage properties in Newark, too.

 Contact Crowne Property Management (in Union)

(www.crownemgmt.com)

Arkad Capital (in Plainfield) they now have a property management arm. www.thearkadgroup.com - Tell them Tahra Wright sent you!

Good luck!

Congrats on starting a HML company! I would start with your local REI's. Ask to be a vendor at them (there is usually a fee). one of my local REI's always has vendor tables and there are always three lenders as vendors offering various programs. If your local REIs don't offer a vendor table then start going to the REI clubs and networking events and letting investors know what you offer. Investors are ALWAYS looking for lending resources, so start the conversations, get their business cards, set up consultations and let them know what you offer. You can also set up a business page on FB and start advertising your services. Good luck!

Hi @Adam Forbes Is there a way to narrow down the list?  Is it a list for one town?  can you determine whether the properties are all in the part of town where you want to invest? Are they SFRs and multis?  Do you want both?  I think trying to find a way to narrow the list first would be great.  If you can't, I don't know that there is a short cut other than hiring a very inexpensive virtual assistant on Upworks to do the research for you. (and when I say inexpensive, some are $3 to $5 an hour, since this task wouldn't require any particular skill.)  I pulled an abandoned property list for a town near me, and I split the list up among myself and a few other ppl and just scheduled about 30 to 45 mins. time in my calendar every day to look up names and numbers, but the list was nowhere near 12k, it was just a few hundred so I got through my part of the list really quickly.  For a list that big I would def look to a virtual assistant because it's not worth your time to do that much research.

Hi there!  yes, I like to use whitepages.com.  A subscription costs t $9.99 per month.  You can get current addresses, past addresses and phone numbers and names of relatives you can reach out to as well.  The phone  #'s include cell and home numbers.  Sometimes there are a lot of #'s if, for example, someone has moved around and set up new home numbers or they have set up numbers for family members.  So you'll have to make several calls.  Some people like to do skip traces on homeowners, which may bring more targeted info, but I  did that once years ago and the cost was almost pretty high for a skip trace for just one person. I can't recall if it was $10 or $20 for just the one skip trace.  Since then, I have used whitepages instead.

@Trevor Smith I was always taught to get the deal and if it’s good you’ll find the $.  Most of the hml’s are qualifying the deal, not just qualifying you as a borrower.  They can close in less than 2 weeks but without seeing the deal terms even if you are a stellar borrower they can’t fund guarantee they’ll lend.  In my area a few will pre-qualify you first so that when you have a deal they can just review it and decide to move forward or not really fast.  If I were you I’d talk to some lenders to understand their process and how fast they can close. 

Congrats on your first flip!  In NJ in homes that aren’t new construction the laundry is always in the basement and ppl hate going from the 2nd floor carrying laundry all the way down 2 flights and then back up from the basement.  A lot of ppl looking at newer homes or renovated homes prefer the laundry on the same floor as there bedrooms if they can get it.  It’s just a great convenience. As long as you still have a combo tub/shower that will be beautiful when renovated, I’d go with adding the 2nd floor laundry.  But sometimes these things are market specific so def ask a realtor familiar with the area as well!

@Alejandro Tirso are you familiar with this area of NJ?  Are you looking for a buy and hold in this area or a flip? Are you looking for the property manager to also be a realtor who can help you find a property to invest?  I am in this area and can recommend Crowne Property Management.  They have a mix of properties that they manage with fees between 9% and 11% depending on the level of management you want.

@Nathan G. You should just double check that with your accountant.  I have not heard of avoiding the 1099 by paying with a credit card.  The 1099 is to report payments to a contractor for which they have to pay taxes.  The only way for them to reflect less income is by a payment in cash, which is why they give you a discount. Not sure the same holds true for credit cards. But lmk!