All Forum Posts by: David T.

Well as soon as you find out who they are, follow through and find out why it is so cheap. There's an old saying about business; if it sounds too good to be true, it usually is. Sorry to be so pessimistic, but you have to be, this is serious stuff. 

I really can't see that kind of a HML rate anywhere. We're paying investors more than that for their money.

We're publishing a new Borrowers HML guide when we relaunch our website next week, you'll get everything there. Meantime, you need to go through it all line by line and independently confirm everything.

Good luck!

This deal simply does not sound right to me?!! You're calling an annual ROI of 6% a hard money loan? FYI, hard money loans start at around 13% plus 3% points origination fees and usually don't run more than 36 months max. A hard money loan is never in single digits that I've heard of.

Taxes at $65 P.A. ? Advertising $100 per year? 

Gotta tell you, these numbers sound like they need some serious due diligence on your part. Come back with firm information and then you can get proper feedback. 

Best of luck with it!

@ryan mullin, you make a few good points and by way of answering, i have no idea where the hedge funds and/or wall street get their numbers. All i can tell you is that they have access to very cheap money and their investment perspective is invariably different to anyone on here?

However, i will say that a lot of people in the Atlanta market have been complaining about a lack of "good" tenants. 

I had a great conversation with an experienced borrower from the UK yesterday, a very colorful character from London. We were discussing start-up relationships with HMLs and I quote from him; 

"Hard money guys are like women, the let you think you pick them, but in reality it is the other way round!"

:) 

Good luck anyway!

Being a former hack myself  (among other things), I'm prone to skepticism when it comes to mainstream journalism and this article does not really tally with the feedback we're getting here on BP.

FYI, we don't do buy and hold stuff ourselves.

http://www.bloomberg.com/news/2014-12-19/rental-ho...

So here's my question, how many of you agree or DISAGREE with this article as far as renting property in your area goes?

Thanks for the input.

You don't give us much to work on here, no SF or quality of location, etc. If we were looking at this kind of a deal and assuming it would need permits, we'd be looking for a minimum $100k profit after all expenses, carry costs, etc. that means, you'd need to buy it for $250k or less. If it is a tear down, you'd be looking at the plot value less the cost of demolition less a margin if you wanted to wholesale. Our 2c worth which is 2% of a dollar!

Good luck with it.

Welcome sue, i hope all your deals will be home runs! Good luck!

Time for you to read the latest BP publication for great ideas; The Book on Investing in Real Estate with No (and Low) Money Down.

Good luck!

This is by far the most difficult task you are faced with, particularly in Atlanta where the availability of competent contractors is a tough proposition. The best thing to do is to turn this situation to your advantage and that means a commitment of time from you.

Draft a comprehensive scope of work (SoW) for the project and then use whatever resources you can to get in touch with contractors. Ask these people to meet you at the job, give them a copy of the SoW and see what this throws up. At the very least it will be an education for you and give you a perspective. Meet them one at a time for best results.

The two most common issues you will face will be "contractors" with no paperwork and people looking for front money which you should never give.

If you are not good at assessing quality of work, there's two ways of dealing with that. Look at as many rehabs in progress as you can and look at flip projects for sale off the MLS. If you throw enough mud, some will stick and if you look at enough of these properties, you will eventually develop an eye for it.

Alternatively, you can hire an inspector to assess each milestone on your SoW. You also need to read the rehabbers bible, J. Scott's "the book on flipping houses" which will give you everything you need to know to get it done. 

Good luck with your project.