All Forum Posts by: Bill P.

@James Gallagher I'd check into your "circle of influence." Friends and family may buy into that rate for your benefit but outside investors probably won't. We have many types of investors so it depends on the type of project, the length of the project, the aggregate funds needed, payment options and a host of other issues. (Yes, we do make it a little complex) For example, we often pay new investors to our firm up to a 20% rate on their first investment because we really want them to see how the private money process works. It tends to give us longer lasting clients. Kind of like a pet store allowing you to take the puppy home.

@Bobby Holley We pay different rates for different amounts but generally on a 25K loan, we would pay 7.25% on a secured basis but 9.25% if it was unsecured. Our rates can go as high as 15.00% for amount over $$500,000. Just be fair in your approach to offering rates as you need to make sure you can pay it and you need to make sure you make money on any investor based deal.

@Josh Cohen I would think in a general sense that you can as your LLC is just a straw purchaser. It's called a refinance. The bank will only lend what it is appraised for, not what you sell it for. And as a refinance, you will just have to have the right amount of equity after the financing.

@Pierce Dandridge Right here on BP where there are plenty of articles on creative finance techniques.  Search for "subject-to", lease options and sandwich lease options to get you started. Do it here and do a general Google search as well. Go to the library and search for RE books on the subjects and see what they have on Amazon. It isn't rocket science, you just have to be focused for success. Good luck!!

@Jay Hinrichs, best decision ever. The Feds have written laws that have unintended consequences. Don't you just wish DC had thoughtful policies instead of the knee jerk reaction they always have?

@Nate T. I might be more interested in taking over your ownership position on the home with a side deal for your equity. But the cap rate will need to be much higher as the duplex looks like something out of Breaking Bad. No disrespect meant, but the pictures don't show a property that is correctly valued and when vacancy occurs, it will need repairs and a strong property manager.

@Jared Chipkin, go for it.

@? I use the word "reposition" as flip doesn't conjur up a good image to my end buyers.

@Edwin W., get a quote as there are too many unknown variables to help you in this regard. What kind of paint? How many coats are needed? Do ceilings need to be painted? Are there special obstacles to the painting process? How quick do you need it done? Etc, etc, etc. Also labor coats vary throughout the US and quality issues need to be taken into the decision making process. Get some references too....don't just believe it, check it out.

Good luck

@Rod Desinord, treating people badly as a wholesaler is no different than real estate agents talking a high listing price to get the listing and then slowly decreasing the price to where it should be. There are unethical people in every line of work.

While I usually agree with @Jay Hinrichs comments, I do not agree with his comments in this post as there are laws in many states that take a dim view of taking advantage of people unwittingly. With all the regulation in place. it is easy to find yourself on the wrong side of a judge.

And lastly, I think @Jim Viens has the best answer as your reputation will get you more deals over a lifetime than a lying snake will ever get in today's market.