Relearning how to walk

[Richard Gaston]

In the late 90's I have done this before. My experience on that is I did a Common Mortgage at 70% LTV ARM NoDoc Loan and the Investor I bought it from carryed back a 2nd mortgage which resulted 100% Financing, all on paper mind you actually the Mortgage company had their own Appraiser who showed actual Comps what the property would be worth After Repairs, that is what was shown on the Loan as the purchase price (why the investor showed they will carry back). What I was actually paying was less then the 70%, investor got paid for the property plus, Loan took care of the closing costs and I walked away from the closing table with anywheres from $4,000 up to $9,000 cash. That explains it in a nutshell.

Now things are different, this is 2014 and Laws are different, lenders are now different and I am restarting back into Real Estate Investing. I need someone to basically take me by the hand, smack it a couple of times to unlearn what I learned, and explain to me how I can do a 100% no out of pocket cash purchase.

Here is my business plan in a Nutshell:

Start the biz, find a good RE Agent who has dealt or dealings with RE Investors, Find General Contrators to help with Rehabs, Find Closing Attorneys who have/had dealings with RE Investors, Find Distress Properties that are in need (Fix and Flips), Find Private Lenders who deal/dealt with RE Investors, Fix Properties, Sell Properties...Then once the money is basically getting steady source of income consider Buy and Hold for Passive Income and build the business from there, if I do Buy and Hold then find PM's who have experience with RE Investors as well as Long Term Experience with Property Management.

My problem is finding a good Private Lender in the Lakewood/Tacoma Washington area, and of course my credit isn't that good, can work around that. I do have a job but my plan is getting this business going really good in 3-4 months, not to quit the J.O.B. but to cut back on the hours, the young man is a very nice young man that I work for and I have known him for about 10 years, he owns the store where I work at and I hate to quit on him, the Manager is also another nice young man (ok, yes I am bit old, 55 years old here going on 56 this year) and I know his mother. I have been reading here on the blogs and from what I read it looks more like Newbies like myself is to steer away from a certain Hard Money Lender or do not deal with PL's use your own money, how am I (and anyone like me) able to do that when I really do not have my own money, my J.O.B. don't pay me enough to use my own funds, I would like to get the funds to finance the property as well as the rehab (including closing costs). Any suggestions, sorry I am trying to think and listen to a podcast from here lol...