All Forum Posts by: Derek Dombeck

Ryan,

Some previous answers are spot on with possibilities to safely get 8 to 10% returns and the answer I would offer is in regards to becoming a lender. We have been lending hard money for years along with buying, selling, and holding long term rentals. The beauty is the safety of lending only to 65% of value in a 1st mortgage position. If the borrower fails, we take the property and we have much greater returns. This seldom happens, but its ok if it does. In Wisconsin, we do not have usury restrictions on commercial loans. This gives us, the lender, all the control from application to completion of the borrowers project. There's a huge demand from borrowers and good deals that can cashflow or be flipped are not hard to find in the midwest. The best part is your money is not tied up for more than a year, so when your own deal arrives, it's not hard to stop lending and start buying again. Feel free to contact me if you would like more info. We are also, always open to partnering with others if it make sense for all parties involved.

Happy Investing

Derek Dombeck

Shiloh,

I think Mike Dymski is spot on. I started my mastermind and here's the structure. I didn't want people from my home area. I run a REIA and love giving information to my members every month....... BUT that doesn't help me expand upward. So, I talked to a couple other people in my network and we started to compile a guest list. By doing this, each of us added people the others did not yet know. When we had the list done, we reached out to everyone in person to let them know the goals and expectations of the group. For us, we expect everyone to "Get Naked" as my friend in the group says. At the meeting, you must tell us what is going bad and what is going good in your business and what your goals are. Then we collectively solve each others problems. I rent a big house somewhere that holds 20 people and hire caterers and cleaning staff to take care of us for 3 days. Then the MAGIC begins. It doesn't necessarily matter who's the most experienced person in the group if you invite people from different sectors of Real Estate and different geographic locations because everyone will have a different view point. These relationships can skyrocket your business quickly!!!

Hope that helps

Derek

Hi Mike,

When You get home, come to the Green Bay REIA. We meet the 2nd Thursday each month and would love to have you join us. It's a perfect place to meet and network with local investors. Check out GreenBayREIA.com for details.

Thanks For Your Service and Sacrifice

Derek Dombeck

Shawn

One structure you could pursue would be a sandwich lease option. 

You first lease option the property from the seller and then you sign a second lease option with your end buyer.  Make sure your option period with the original seller is longer than the option you are giving to your end buyer. Ideally, you would want a larger down payment from your end buyer than your paying to the seller so you can make a spread upfront.

Happy Investing

Derek Dombeck

Welcome to BP! 

Happy Investing 

Derek Dombeck 

James,

Go join the Madison REIA. Great group of people. I spoke there last night and the members are really interactive.

Happy Investing 

Derek Dombeck 

Robert,

Regardless of who or what entity will the title to the property, your lenders (parents) should have a note and recorded mortgage to protect their loan position. You should also provide a lenders title insurance policy and have them listed as the lender on your Hazzard Insurance policy. These are all standard practice with all lenders and your parents should have the same protection. 

Happy Investing 

Derek Dombeck 

Welcome to BP. 

Happy Investing 

Derek Dombeck 

Welcome to BP. 

Happy Investing 

Derek Dombeck 

Matt,

Welcome to BP. I have to say John K. Suggesting you avoid your local REIA is a terrible idea. I have never been to Madison REIA, however I do network with the gentleman that runs it. Just because he offers a mentoring package does not mean the REIA doesn't benefit the members who choose not to use the mentoring. I run a REIA in Central WI and just like Madison, we focus on education and mentoring. You will get alot of good info on BP, but local networking is a huge part of being successful.

Happy Investing 

Derek Dombeck