All Forum Posts by: Scott Wolf

@Shannon Gauthier, there are plenty of posts on here about raising capital.  BP also sells a book about raising private capital.  Reach out to your network, or start networking.   

It might also help if you post with the location of the property to gain attention of local investors and players. Perhaps a private lender or HML will come in for the down payment if the deal makes sense.

@Shannon Gauthier, buy the real estate with a loan.  Make the purchase price $475k, and you'll need to come up with max 30% or $142,500(plus closing costs).  You can also try for an SBA loan to help get that number even lower.  Have you never needed capital because you are so flush with equity and cash it was never needed?  If so, tap your available equity.  

Good luck!

@Denisse Romero, one option you may have is, depending on where your stocks are held, your financial institution may be able to offer you a line of credit off of your stocks.  I have one in my Wells Fargo account and they lend up to 70% against the stocks I have.  I do not use more than 50%, just in case there is a shift in the market, but it has helped me invest in deals without having to liquidate my portfolio.

@Miles Serman, are you an attorney? If not, I would hire an attorney to help you achieve your goals. Lay people should not be writing contracts based on books they have read regarding contracts.

@Robert Gunther, seems like you've become emotionally attached to buying this property.  I understand ease of scaling the business with the properties literally being next door, but you said yourself everything he wants is not in line with the market.

I agree with @Steve K., you should let it linger for longer and then make another offer, but be prepared to be turned down.  They may not need to sell, and just want to hit a certain number.

@Naomi Alzate, are you getting a loan for the downpayment from the hard money lender?  If so, who is financing the rest of the loan?  A traditional bank may not fund a deal with a capital structure like that.

@Steve S., where does the 25% ROI come into play? Based on a 10% interest rate for 180 days, a lender would only make 5% on their money. If you could elaborate, that would be appreciated.

@Aaron Degenis, one thing to factor in is your section 121 exemption.  This IRS code allows you to walk away with up to $250,000 in gain tax free ($500K if a married couple), and if that money can be invested for a better return(and ease of investment) elsewhere, it may be worth calculating.

@Derek Dombeck

@Joshua Randall, or you can ask for seller financing.