All Forum Posts by: Scott Wolf

@Desmond Pressey, you may need to speak with a syndication attorney.  I have a client that has done a deal like this before.  If you'd like, I can see if he's willing to chat with you.

@Abigail Pusey I've been a private lender and an equity partner myself.  If you can use them as private lenders, that is a much better value proposition for you, since giving up equity is worse for returns.  

You should use an attorney to set up loan documents and your investors will have first lien position on your property.  If you can present them a clear timeline and get 6-8% for them on the money, it could make sense for all parties involved.  You should present first with a potential deal that you've run the numbers on, and show them you have the capability to carry the loan, and will be in a good enough position to get them their money back with a cash-out refi after 1 or 2 years.

@Abigail Pusey, are you looking to have them be equity partners or lenders?  Most investors will want to see skin in the game from someone pitching them an idea, so make sure you'll be joining as well over and above any sweat equity you'll be putting in.

Also, never make promises on returns unless it will be a loan in which case if they don't get their monthly return, they will get the property through foreclosure, and this could ruin some friendships.  Always happy to chat offline as well!

Good luck!

Hi @Sam Rawlins, where are the parks, and are you looking for one loan to cover both or two individual loans?

@Nathan Weber, I'll echo what most have said.  The majority of people are here to be helpful.  You will find some people trying to dupe/scam others, but they are usually easy to spot(super low post counts, only post about the same coaching classes).  Google is your friend, and you can always come here for advice if something feels off.  

@Aaron Peterson your returns will be much better if you pay them interest vs. giving away equity. You could ask if they would take the interest as a lump sum paid at the end of the deal so you don’t need to pay them monthly.

@Jordan Magrini, seems like a scam for 100% at 4%, but what is the loan amount?  The $4,500 could be in line with the market for fees.  I'd be very wary, and make sure the origination fee is paid at the closing table and that there are no upfront fees outside of an appraisal fee potentially.  Also, I see there's no NMLS number on their website. I'd find out if they have one.

@Chaits J., why are you looking for seller financing?  Are you unable to get a conventional loan?

@Lauryn Meadows, thank you for sharing. Despite not being what you wanted, 31% CoC return is amazing!

Perhaps in a few months, a refi will help you pull out more of the invested capital.

@Vanessa D Guzman, not to beat a broken horse, but don't spend money on this. And definitely don't listen to people with 1 or 2 posts pointing you in "the right direction" (COUGH COUGH @Glenn Ferguson). They may very well be part of the company shilling the course.