All Forum Posts by: Adam Schneider

@Annwar Matani

A few comments that I don't think have been mentioned among all of the replies that are worth considering:

1. One huge benefit of a private/HML loan is the strength of making an offer when competing with cash buyers. So, you need to know what the terms and conditions and time frames are for the private/HML lender when preparing to submit an offer. Things move very quickly.

2. If using a private/HML loan for the first part of the BRRRR, you'll want to understand the terms and conditions and timing so that there's not an issue when you refi. For example, if the refi lender requires 6 months of seasoning so that the refi is based on LTV rather than LTC, then your HML will likely be 7 months...

@Sam Nichols. You may want to contact the real estate commission in TN.

Veronica...you are raising a great topic. Do the attorneys advising you also want you to open 6 separate bank accounts? You'll need to decide where you are on the Risk / Risk-Aversion pendulum at some point. If you grow to say 15 properties, do the attorneys want you having 15 of everything? The costs to have a separate entity per property is going to be big.....many people have a mindset where they want to limit their exposure in one LLC to a dollar amount (say $1M or $2M of inventory per LLC). Other people have one LLC for everything. If you are looking to get bank loans and keep having a new business/LLC, that can be a challenge! Then, there are other people who are quite sophisticated with their structures and choose to invest money on the structure (you'll hear references to Trusts)...and then you'll have people talk about piercing the veil....and you'll hear some people say that as long as you have enough insurance, you are fine....and others will say that you have to be careful about relying on insurance to protect in all matters. If you talk with enough people, you'll get enough different answers to decide not to invest, and just sell all 6 of your properties! If you decide to do that, I'm sure that someone on this site will help you out!!! Ha!

I agree with everything that Cory Thornton said.

Welcome, Philip. Are you in Raleigh or Fayetteville?

Welcome to Triangle Deal Maker Sessions.

No Guru's.

Investors present off-market inventory!

Other than inventory being presented, it's a time to network.

@John Aaron I'm guessing that you might be using the 2-T (NC standard contract), which includes default language that the contract cannot be assigned. So, you'll want to have some sort of language that states that the contract can be assigned. To your point about being concerned that a seller is upset if he/she sees a large assignment fee on the HUD, an option to consider is a SDDC (Same Day Double Close).

@Cory J Thornton

I'm hosting a Triangle Deal Maker Sessions tomorrow, 9:30 a.m. if you want to attend. 600 Glenwood (Hampton Inn).

#Raleigh

#Durham

@Allyson Mitchell

Did you invest in a seminar or a course for wholesaling land, or how did you become educated in this space?

@Thomas Richardson

Your note mentions good cash flow. Assuming you are keeping them, you'll want to familiarize yourself with the BRRR method--both in terms of concept and actual tips and traps. Essentially, you'll use a short term loan for the acquisition and rehab. Once you have stabilized the property and satisfied long-term loan seasoning requirements of the bank, you'll refi to the less expensive long term lender.