All Forum Posts by: David Begley

I'll tell you how a Guru (Than Merrill/FortuneBuilders) function was very worth it to me. A little less than two years ago, I left my CFO position and began contemplating my next career move. I had spent over 25 years in banking and financial services, and had secretly been contemplating making REI a full time job. At 50, I just couldn't bear the thought of working for someone else again - the interviewing and being told "... you're overqualified for this job....", (code for you're too effing old...) and the corporate bs involved with playing that game again. However, with one kid starting college, another starting Law School, insurance concerns, blah, blah, blah, I knew my wife was going to be a tough sell and she was already dismissive of the idea of REI as a full time job. Frankly, she needed to be all-in before I would even consider that route - if mama ain't happy, nobody's happy....

Long story short, I heard one of FortuneBuilders ads on the radio one morning and I had a sudden, albeit rare, stroke of genius. If I can't sell her, maybe this dude can! To be honest, I probably already knew more about REI than any of the FortuneBuilder's presenters we heard the day we attended their seminar, but on the car ride home my wife was gung-ho, all-in, and very supportive of OUR decision. Thanks FortuneBuilders! And no, not interested in the next level, thank you very much.

 Phillip, read Daniel's advice over and over until you truly understand what he is saying to you - it's the best advice you've received yet.  Don't be a fool, go to school.  Don't listen to those saying they still can't get a decent job with a 4-year degree - try talking to those trying to get a job without that 4-year degree.  And no, you don't have to go to an Ivy or top tier college - that will only matter when interviewing for your first job; but yes, you will be treated differently without a degree.  

As an academic exercise, put together a spreadsheet listing all the RE investors in this post https://www.biggerpockets.com/forums/55/topics/799... and determine the percentage that have at least one degree versus those without a college education.  I think the results will be enlightening to you.  These are the folks you will be working with and/or competing against.  Do you really want to begin at a disadvantage?

Regardless of your decision, good luck to you and I wish you a bright future.

@Account Closed

Dexter, I can't with certainty answer your questions, but I can provide my experience in the few REO/foreclosed properties I've purchased at auction. Moreover, the correct answers may vary by jurisdiction anyway. Each of the properties I purchased by auction were advertised as being Occupied but by the time I closed and visited the property, the occupants had left. This may just be a Wells Fargo policy (all of my deals were auctioned by WF); they evidently offer cash for keys after foreclosure so their Asset Protection army can secure the place to prevent further deterioration and devaluing.

With respect to liens, outstanding HOA fees, or other surprises, I have access to the MLS databases and LexisNexis and can perform cursory title searches. AND, I always required an owner's Title Policy prior to or on the day of closing to [better] ensure clean title.

Good luck!

Ken, I think we're on the same page here, with the exception of our view on the value of the 1040s. The point I was trying to make was, at the end of the day, most HMLs are going to look to liquidate the asset should the deal go south in a hurry. That is why I recommended not advancing more than 55%-65% LTV. I spent 20 years of my career overseeing credit/collateral operations for "a major wholesale bank" and have been involved in the closing and aftermath (collateral liquidation) of over 500 savings and loans and banks in the southeast and liquidation of billions in mortgage collateral. I know bad bank underwriting when I see it! For a HML or private lender, should the deal go bad, a 1040 or W2 isn't going to mitigate your risk although it may have provided a little psychological balm initially. It really doesn't matter if the borrower may have external means to scrape up interest payments while the asset deteriorates. I'll bet you'd want to take control of that collateral as soon as possible in order to liquidate and recoup your investment.

Kate, I would think knowing the market, the value of the house "as-is", along with avg comps for a similar house in that neighborhood would be most important. That, along with the Borrower's past experience and then lend 60% to 65% LTV and hope like hell they do default! Especially in your market.

I've not encountered a HML that requests Personal and/or Business Tax returns or W2s - that's why they're going to a HML. HMLs are typically asset based - if borrowers had the requisite tax returns and W2s they likely wouldn't need a HML. I personally would avoid a HML that mirrors a Conventional bank's onerous underwriting requirements because they likely couldn't close in the needed 5-10 day period either.

@Todd Whiddon  AAAAARGGGHHH!!  The story of my life, a day (or two) late and a dollar (or more) short.  I wish I'd seen the invite earlier... maybe next time?

I've been wanting to pick that brain for some time now! lol 

 Jay, the lack of responses is likely not reflective of a lack of interest or knowledge amongst your BP peers.  Quite the contrary - that question has been asked and answered ad nauseum over the past year.  Moreover, there's actually a separate Forum category for Crowdfunding (https://www.biggerpockets.com/forums/520-crowdfund...) if you want to peruse the latest discussions. If all else fails, you can search the site in the upper right  hand box by entering "crowdfunding" and you'll find your question asked many different ways with hundreds of responses and perspectives.

If you want to hit me through PM, I can give you my opinion on the better crowdfunding portals and/or several knowledgeable experts on BP (those without an agenda and without  self-serving interests). 

Good luck! 

 Congrats Mark, that is inspiring! 

@Jay Hinrichs Yeah, that's the pisser - their rates/points are better than most - even if a $199 application fee goes against my grain, but I will say I'd gladly pay that fee again if they can get their act together on the back-end.  I wanted to do a "trial run" before jumping in with both feet, so the first deal I presented was simple and I gave them over 30 days to close.  They couldn't hit their own closing dates with that much lead time, so going that route with a Wholesaler where closing might be in 5-10 days appears to be outside their capability.  A shame....