All Forum Posts by: Alex Cotter

Hello,

I am seeking a real estate agent in the Cleveland, OH area. I will pay for help with various pieces of due diligence on several properties in the area for buy and hold.

Reach out to me so we can talk offline.

Thanks!

Alex

Single property. 

Great website by the way!

Hello Bigger Pockets,

My situation:

To entertain offers for land and flips in the $400K range, I seek a bit of seasoned logic on how to approach lending institutions and builders who might finance. I seek a short plan of action that is recommended.

My credit and net worth is in line with getting a mortgage well beyond the number about (sincere apologies about the boast...not intended to be so). Ideally i would like a lender that will:

1) loan for land acquisition and development

2) loan for purchase and renovation

My question (3 parts):

Part 1: What is the most efficient way to identify lenders in my area (Westchester, NY) for 1 or 2? What exactly constitutes a local lender, would it be the local Wells Fargo brand or the Small Town X Regional Bank Union as examples. Phone books don't really exist anymore, so do I call a library or a local agent-that I would not be using.

Part 2:  What is the typical nomenclature for the types of loan 1 and 2 represent? I can research the rest myself...on the forums. 

Part 3: There is a paradox, I have to hold a conversation prior to having a deal in hand. Yet I would need the financing on-the-ready if I plan on offering a simulated cash offering. Are there any strategies one would employ? Does this strategy for part 2 include talking to local builders that might finance themselves, if so, how do I approach in a professional manner these individuals.

I would be immensely grateful for any response. Thank you.

Alex

It depends on how you much value you place on your person. 

Having gone to a top 10 MBA program, it is hammered into your skull that you invest as much as possible and borrow at any rate lower than your invested returns, via using your investments as collateral. At the same time, if you feel your worth is greatest in an entrepreneurial sense, then being unburdened by debt will allow you to explore a greater range of possibilities.

Here is the part where I am going to mean, and I am sorry to do this. By 30 a $55K 401K amount is pretty low, at this age you would ideally be at $150K+ in portfolio investments. The fact that you have accelerated your mortgage payments during the lowest APR period in history shows questionable judgement in finance and tax. Without knowing you, keep putting as much in your 401K as possible. Its seems like you might be high risk of losing your money.

As I am being mean, I want to point out that I optimized my financial situation by having around $400K in invested capital (401K about 200 and personal portfolio about 200), huge mortgage in the very high 6 figure range...and when my wife lost her job...i regretted very much my decisions. In the  year picture I was better off. But month to month, I was overspending about 5-10K just making payments to run the show. 

I know logically my advice is right but emotionally it is a different story. I too have a child so I can relate.