All Forum Posts by: Scott Wolf

Investment Info:

Single-family residence private money loan investment in Brooklyn.

Purchase price: $35,000
Cash invested: $35,000
Sale price: $48,000

I lent $35,000 to a wholesaler as transactional funding. The note of $35,000 was returned to me with a total of $13,000 additional in profit, representing a profit of 37.14%, or 445.71% annualized!
I will definitely be doing more of these loans in the future!

What made you interested in investing in this type of deal?

The loan was brought to me by a trusted RE attorney I work with.

How did you find this deal and how did you negotiate it?

Borrower and attorney presented the offer, and I accepted.

How did you finance this deal?

I was the lender

What was the outcome?

Success!

Lessons learned? Challenges?

Vetting borrowers is easy when brought to you by trusted referral partners

@Trae Robrock, you will probably get more for an unsecured loan, but I wouldn't do that without the assistance of an attorney.  Also, you'll need to be smart about Usury Laws where you want to lend.  As an example, my attorney protected me very cleverly from exceeding usury in NY by making the borrower also cut me in as an equity partner for a small portion on top of the amount I was lending.

Also, attending local REIA's will give you an idea of what people are borrowing.

@Ashley G., how well do you know this individual? 8% for 100% financing doesn't seem like such a great deal for you, but perhaps this is more to the story.

@Eva Fox, what difference does it make what Zillow thinks? Unless you're looking to sell or refinance, the value should not matter.  I'd trust an experienced local RE agent more than Zillow.

So @Terence Stamp, are you looking to buy vacant land without running a title search? I understand the reasons some investors have for not buying title insurance, but not even running the search seems a bit too risky.  What is your end goal? As @Wayne Brooks mentions, if that cost will sink your battleship, it may not be worth it to fight the war.

@Jason Dirks, adding a location to where the property is may help.  How many people are CC'd on your emails?  Have you also tried to reach out to your attorney or the title company?  They may be able to get the response you're looking for.

@Michael Conte, where are the properties located?  They may all want to wait for a seasoning period of 6 months to pass.  Were any mortgage brokers, or all direct to banks?  You may need to deal with a company like Civic in the meantime to get your cash out.

@Aaron Funk, where is the property?  Most true private lenders are local lenders.  Some of the bigger firms like Civic are nationwide.

@Camerron Feagin, hell yea that's a scam!

@Jordan Lockaby, what's the loan amount and LTV you're looking for? And will it be held in an LLC?

@Seth Mceleney, what will change in the 6 months that will give you the $120K needed for the down payment?  Do you have other assets you can use as collateral, since as @Account Closed mentioned most HML will want to be in first lien position. You will either need a private lender or equity partner to get this deal done.