All Forum Posts by: Alexander Felice

you should start soft raising money immediately and you should be soft raising money ALWAYS 

My experience has been the lender wants a fresh LLC for the property in question and you'll have plenty of time to do that once you go under contract, I (personally) don't recommend creating one before hand.

what do you want to do in the industry? 

Sales - call brokerages and see who will take you

Lending - starting in processing or service shouldn't be too hard, some places might take you in to sell small loans

you don't need a degree to do anything in real estate. Degrees are good at teaching complex theory but real estate is an industry reliant on competency, where experience is most valuable. Something college doesn't provide very well

When I was first on this site I would advised against paid education, I saw it as all grossly overpriced and unecessary. Now I see the issue as a bit more complex. 

Real estate is a difficult to implement, but simple to understand business. Education on this topic is free and abundant because it doesn't have that much value. The reason people pay for these courses is to deliberately choose their social circle, and a person's social circle is the most likely factor to dictate their level of success. 

You'll get more value from setting $5,000 on fire than you will from paying for real estate investing information. 

but depending on the people, paying $5,000 to be around them might be the deal of the century. 

in principle, you get paid more for taking more risk. My approach is to buy the problems whenever possible as that's where the you can create the most value (equity). 

in practice, at this point in the market it's difficult to find distressed properties and margins are thinner. This makes it more of a time value of money problem, how long do you want to spend searching for the big discounted property rather than just getting something and start producing. The downside here is it creates a tendency to overpay just to go fast. 

No

Keep it simple, just have him loan you the money and you pay him 50% of net at the sale.

too vague 

What markets do you have knowledge of?

What rental class do you intend to buy?

How much house can you buy?

Are you buying for cash flow or appreciation first?

Where do you have the most ground resources?

Picking the best location is far less impactful than just picking a location and sticking with it.

Your find commercial lenders the same way you find anything these days. Referrals, and google. 

Regardless of where you live a quick web search should easily provide you with 10-20 lenders you can call. 

Also, take a moment to think about what you're asking from the lender's perspective. You want to pay them the smallest amount, you want to stretch it out as long as possible, and you want them to hold the deal with the smallest amount of equity. Considering they are your money partner, how excited are they going to be about this? 

Poor actors only serve to raise the value of the good ones.

It certainly makes it more work for a new investor to weed through the BS, but like most things in life, value rises to the top over time.

No, and I don't think that's his role. 

It seems BP's goal is to create a large volume of great hosts with great community engagement on a variety of different verticals, specifically so they don't have to worry about one person "carrying the torch". Having an entire brand as big as BP ride on the back of one individual is bad business, they need the intellectual property out across multiple hosts.

For this purpose the requirement isn't to be great, but good enough, which David definitely is ;) ;) 

Hard money is debt that is generally underwritten based on asset rather than borrower and exceeds the risk profile that a traditional bank is willing to accept but recoups that risk with a premium on terms.