All Forum Posts by: Account Closed

Are private lenders just too stingy these days? I have a house under contract, but I cannot get anyone to help me finance the deal. I have the credit, just not the cash. The bank is all set to give me a loan, I just need the 20% down.

For the curious, the house is under contract for 67,000. I need to put about 13,000 into the property. ARV is between 120,000-125,000. Avg comps in the area are 123,000.

I pitched to a ton of investors who didn't seem to think the deal was worth it, but the numbers don't lie. Used the 70% rule to get my offer price. Even if I was in a pinch and had to sell it for 110,000, that's still nearly $30k, minus some closing costs.

Maybe I am missing something. Or maybe people just want the profits for themselves and aren't interested in helping the REI community.

Any thoughts?

Thank you for the input! This definitely helps.

Thanks Wayne for saying WHERE to put the verbage. That was one thing I had forgotten to ask but had been trying to find everywhere. I read about the "and/or assigns" but nobody said where to put it in the contract

Hi out there!

I have a quick question that I have been trying to find the answer to and I guess I just cannot find this.

I am beginning in my REI by wholesaling in my market. I have my contract to purchase a property. Now when I get someone to sign this contract and I then take to the investors to assign this contract, do I need a whole new assignment contract entirely, or is the assignment written into the original contract in any way?

Do I need to put into the purchase contract the ability to assign the contract?

Thanks!

Ryan

Just a quick question out there real quick

I am launching my DMM campaign this week and I am preparing some letters to go out. Before I do, I want to make sure I am not overstepping my bounds in the letter.

I know most people would suggest to be simple and concise in my letter, and that is what I am leaning towards.

Now, I am targeting pre-foreclosures and trying to purchase properties to wholesale or rehab before it goes to foreclosure auction.

As far as etiquette in the letter goes, is it too far to make them aware that you know they are facing foreclosure and you are looking to help them avoid that situation?

I want to try to make someone perhaps understand a little more about why I am writing them and perhaps motivate them to call quickly, but I don't want to overstep my boundaries in what I say in the letter.

Advice?

Ryan

Thank you for the input!

Just curious out there, I have been going to my local REIA meetings for the past few months and trying to network there. Recently I struck up conversation with someone who works a lucrative full time job and is just interested in being a lender.

He told me a few days ago that when I find my first deal to call him, not the bank. So I am out scouring for my very first deal still. I have one I am going to look at this week.

Question is, I want to be fair to my newly found private money source and I want to give him a solid ROI, so he will be inclined to work with me in the future. In order to not be insulting, what is a good ROI to offer to him so that I'm not cutting huge into my profits but keeping him happy and willing to invest in the future? I don't want to just ask and seem stupid, rather I want to offer with confidence to further solidify his support.

Thanks!

Hello BP community,

My name is Ryan Gnizak, first time posting on the forums here. I live in Louisville, KY with my wife and 10 month old daughter. Currently I sling product for Pepsi and I am hoping to get my foot in the door of REI.

Now, I'm sure this has been asked many a time on the forums, but I think it would be easier for me to get a specific question answered on the topic of an LLC

I have heard a lot that an LLC is beneficial to form when starting out in REI. What I feel like is my biggest concern is protecting my personal assets & my personal credit, as well as keeping business & personal as separate as possible.

With that I have 2 questions:

1)Would the formation of an LLC be beneficial for me/what are pluses and minuses to forming an LLC? I am hoping to start out Wholesaling, or even rehab if I can get a good hard money investment. With my current full time jobs(my 40 hour work week & being Husband & Dad), I am finding it would be hard to give as much time as I would like to rehab, so I want to start with Wholesaling to get my feet wet, network & learn, while building capital to fund rehab projects as time allows.

2)If I do set up an LLC, is it better (given my interest), to keep the LLC taxation or be taxed as an S-Corp? I have read so many opinions on this and since I am not very tax savvy, I feel like I get bogged down in a lot of people's explanations of taxation. So if anyone can offer a solid layman's explanation, I would greatly appreciate it!

Thanks for reading!