All Forum Posts by: Wendell De Guzman

Hector Perez, if the deal is good the money will follow.

I can get the hedge fund I work with involved or my other lenders to see if they can fund this deal.

I agree with Wayne Brooks...this sounds like a mediocre deal at best. Also, who will invest and want to make only 6.35% ROI?

Cincinnati is also good for buy-and-hold. The cashflow is right for the price that you pay. However, do NOT expect good appreciation though (be satisfied with 3-5% appreciation).

Yeah - your credit will be affected once the bank forecloses against you even if the house is in an LLP provided you gave a personal guarantee on the loan. Loans for single family homes or small multis are usually with recourse. Moreover, as @Wayne Brooks said you will likely get a deficiency judgment (this would be stipulated in the mortgage document you signed).

Shortsale is a viable option. Doing a loan mod with the bank is another way to avoid the foreclosure. Depending on how soon your foreclosure is, you may need to involve a foreclosure defense attorney in your state to give you enough time to do either a shortsale or loan mod.

Joe Demonte, welcome to BP!
My situation is reverse of yours.
I used to live in Orange county myself (Fullerton) and now I am in Chicago.

What's your objective? Cashflow? Cash?
Based on this, what's your strategy?
Wholesaling, retailing, lease option, buy-and-hold?

Investing for cashflow in sunny CA is not going to be easy given the highly appreciating market. It's a good flipping market though.

Rory C., welcome to BP!

One thing you can do is approach other wholesalers and market their properties for them. Of course you need to control these properties through an Option contract before you can market to sell these properties.

By doing this you are able to build a buyers database.

I have wholesaled other wholesalers' properties and vice versa...and made money and built my buyers database in the process.

Jerry Robins, I agree with Ned Carey, SHORTSALE is the solution in this case.

Shane Johnson, thanks for pointing out about not owning it for more than 2 years and the tax implication. I have thought also about getting a HELOC but Arnoby does not want to go into more debt.

In this case, then...Arnoby Torres, you might need to do a 1031 exchange and trade up to a 4-plex without paying taxes on the gain.

You get more cashflow with minimal debt and you get to live rent free.

Arnoby Torres, you are asking a great question and only you can answer that. Why? It all depends on your goals & needs.

Based on what you said so far, it seems like your goal is to generate passive income. You like renovating houses and creating equity (profit). Your fear is that these good deals will pass you by BUT at the same time you do NOT want to borrow more money or go into more debt.

If the above is accurate assessment of your goals and needs, here's an idea for you:

1. Sell your personal residence and get $60K in profit
2. Use that as downpayment + rehab money + reserves money to get a FORECLOSED 4-plex instead of a house
3. You can live in one of the units while renovating the other units to generate massive cashflow and equity

Why 4-plex? You can still get owner occupant financing for a 4-plex, you can live in one of the units (live rent free or no house payment) and it will generate enough cashflow or passive income.

Of course, this assumes there is good demand for 4-plexes (rent-wise) in your area and you're OK living in those rental areas. Makes sense?

If you are an experienced real estate investor, listen up. I have a hedge fund desperately looking for real estate deals to put their money in (they have only 4 months left to invest their money before the year ends). The nice thing about this hedge fund is that they will fund anything that will have the following criteria:

1. ROI of 20% or more
2. Minimum funding amount of $200K or more
3. Residential or commercial property - OK (no land)
4. Cashflow producing properties preferred (can also fund flips)

Only downside is that this hedge fund is greedy. They want 40-50% of your profit (and they want to be your equity partners). However, they will fund 100% of the money and they don't care about your credit.

This hedge fund can fund a $200K deal all the way to $200 Million (or more).
If you have a deal, this hedge fund has the money.

Submit a 1-page prospectus (in pdf format) about your deal to my email ([email protected]) including your phone number (do NOT include a property address - just the city). If you have a real estate deal and you need less than $200K, I might still be able to help fund it but not through the hedge fund.

So email me what you've got and I'll see what I can do for you.

P.S. This hedge fund will only fund real estate deals NOT businesses or franchises.
P.P.S. Email your deal through a 1-page prospectus. Do not submit details of your deal through this forum for your protection (some deals are confidential in nature).
P.P.P.S. Do NOT call me without emailing me first your prospectus. I will call you if your deal is prequalified for funding.