All Forum Posts by: David Begley

@Wesley C. I'm between deals right now, so I think I'll take my $250K cash reserves to Keeneland in Lexington, KY this Saturday and put it all on triple crown winner American Pharoah to win The Breeders' Cup!  Let's parlay those Reserves!  (If I'm on the Forums Monday, you might want to try to sell me properties; if not, come visit me cleaning out horse stalls in Lexington.....) 

 I've experienced this twice in the last year.  I ordered about 20 of these Dummy/Fake Security cameras with blinking lights from Amazon at 7.99 each ( http://www.amazon.com/gp/product/B0013Q1XTM?psc=1&redirect=true&ref_=oh_aui_detailpage_o02_s02) and have my guys install several first thing on every job - one aimed at the dumpster to keep it from getting filled on the weekends too!  The cameras + the mandatory AC cage + a simplisafe.com security system are necessary costs of doing business.  My loss was in excess of $10,000 on the last theft for probably $200 in copper.  I'd like to give the bastards a little lead... 

@Brian Watkins Have your friend JV with an Investor that would agree to put up the $25K to finish the rehab and while the rehab is being completed, she finds tenants. Assuming the finished property would appraise for $120,000, refi at 75% LTV and use the $90K to pay off the HML and to make your friend whole. Your friend Quit Claims her interest in the property to the investor and he/she acquires an income producing property (~$1,700/month) for a $25K investment, a 30% cash-on-cash return after debt coverage. Maybe not a Win-Win, but a Win - Not-A-Loss, is sometimes a great relief!

@Brian Watkins  There probably isn't a solution that doesn't lead to your friend losing some, if not all, of her $38K investment.  She already needs $90K to be made whole + $22K (which really means $25K+) in renovations on a property that appraises at $110K at best, so no matter how you look at it, she's going to lose money.  Also, with renovations valued at 25% of the property value, a conventional loan would be out of the question, as one person suggested.  To add insult to injury, since the GC absconded with her money, my guess is that the "GC" was not licensed, and therefore doubtful the necessary permits were pulled which will make the next GC and rehabbers job more difficult - and expensive.

I would highly suggest she sell the property now to cut her losses - if the ARV is correct. She should be able to realize more from the property selling to another rehabber or giving to a Wholesaler to market, than if she turns the property over to the HML. If she elects to find the funds to finish the rehab, she is going to take a loss on the sale, not to mention the unknown expense of carrying it for an unknown period of time. However, I would double-check the ARV estimate AND the potential income you quoted. My guess is that either the ARV is too low, if your rental income is correct; or if your ARV is reasonable, the potential rental income will not be in the $1,600-$1,800 range. If you do find the ARV is reasonable at $110K or so, SELL quickly! If the ARV turns out to be $125K or better, you have better exit solutions.

Good luck! 

Kyle, I don't want to be rude, but after looking at your website, it appears you are doing exactly what I indicated in my OP that is so frustrating right now as a cash buyer/flipper. I went to your website offering "wholesale" deals and found three Decatur properties I'm interested in. Then I find out all three are listed on the MLS and on one you're offering at a price higher than MLS! All three properties were picked up through wholesale or foreclosure or some other means and you're simply marking them up to retail and trying to sell as wholesale! Each of the three properties were acquired within the last 3-6 months at prices 40%-50% less than you are marketing as "wholesale" when actually you are selling them at unrehabbed retail. I am still interested in the properties, but will work with the Agent to negotiate a reasonable purchase price or will pass if that cannot be negotiated.

I'm interested in forming relationships with wholesalers that bird dog off-market deals and can pass along the distressed properties - at distressed prices - to a cash buyer. That is not what you appear to be doing. If my assessment is wrong, please correct me and I'll apologize profusely! Also, if you do have some truly wholesale offerings that are off-market, please contact me, I would be interested. However, I can search the MLS as well as anyone.

Has the Atlanta/Decatur market inside the perimeter dried up and/or is the supply/demand pressure simply pushing distressed property prices to speculative levels so that there just isn't much meat left on the bone?  I'm finishing a couple of rehabs and have been trying for weeks to find additional properties to flip, but with little or no luck.  If any Atlanta Wholesalers have properties or leads in east Atlanta and Decatur or any other properties inside the perimeter, please contact me at [email protected].  

 Charlie, your website lists CA, WA, TX & FL as states you're Lending.  Have you expanded into CO and other states?

 Here's an update. Kinda.  Same Crook, different BP victim:    https://www.biggerpockets.com/forums/522/topics/220604-first-substantial-loss

In the short run, the Chinese stock market plunge should be good for overall real estate values in areas such as California's Bay Area or New York city as Chinese investors seek safe havens for their capital. However, if the "financial crisis" lingers for an extended period, those same areas may start to see flattening of values, and even a reversal.

For the average homeowner, I would expect that many families that were contemplating purchases have seen their down payments and net worth drop a bit this past week and may well decide to sit on the fence until the dust settles.  A spike in interest rates may push them off the fence....  

As a REI, my present fear is that I'll get a margin call from the Broker managing my stock portfolio which could seriously impact my current real estate investing plans.

 Charles, I am going to assume you want to borrow funds rather than lend funds, so if my assumption is incorrect, never mind the following!

As I understand it, "Private Money Lenders" are by definition not companies - at least not in the strict sense of the word.  Private Lenders are typically individuals/friends/relatives or Investors wanting to invest passively in real estate, whether from their investment portfolio or SDIRA.  If you are looking for Hard Money Lenders ("HMLs") in the metro Atlanta area, I would start with reviewing the following in BP's Resource tab: http://www.biggerpockets.com/hardmoneylenders/geor...

After reviewing these, PM me and I'll relay my experience with those I've dealt, and perhaps steer you away from those I've researched that aren't quite up to the standards of their competitors - i.e. those charging upfront fees, exorbitant points, excessive or conventional-mortgage like underwriting and documentation, etc.

If indeed you are looking to PLACE money, PM me as well and I'll send you a couple of suggestions of BP members that are active in that side of the biz.

Good luck!