All Forum Posts by: Amy Solomon

Here are some of my financing thoughts/ideas.

I feel that I might be able to get small unsecured loans. $25,000-$50,000 or so. If so, can I just take that money, get with a HML or even a conventional lender or home path and work on 1-2 houses at a time with that money...with only the one investor involved so as to not involve the sec?

I also feel that I may be able to get money secured by the specific property I will be buying. Perhaps up to $200,000. Can you please point me in the direction of where I can go to read up on how to structure such deals with my private personally known to me lender and what documents I'd want, how to get the deals written up, etc.

I feel that I also might be able to get a family member to give me a 2nd mortgage on my home. I have about $100,000 in equity and I am not eligible for a conventional heloc at this time. I could then use that money on a deal without using funds from another investor. Can you direct me to information on how to structure this deal and get this deal written up?

These are some of the things I am thinking about/working on. What are your thoughts? What experience and knowledge can you add?

I filled out the form on realtors.com to be contacted about a property. Someone called me back who was not the listing agent. They said they r a broker but they work for realtors.com. I don't get that...anyone who knows what that's about please explain.

At any rate we got to talking and he said he worked with some lenders and he'd get me their info. He never emailed me, but someone called me from central Florida investment properties LLC. He told me they offer 13.5% rates on loans $50k-$150k. No points. No down payment so long as loan doesn't exceed 65% ltv based on the arv. Up to 3 year term. No prepay before 4 months. This sounds pretty darn good. I hate points. This is only about 4-5% higher than a loan from aunt so and so. But most hml charge 2-4 points and 18%.

I just want to make sure what I'm getting into. They also said $300 appraisal fee and $750 attorney fee.

What do you think and how would check out a lender before doing business.

I can share only my short sale experience. I short sold my $330 home for $215k. It then short sold 2 years later for $179k. But what they will take for the short sale does have to do with local market value. The next house I short sold was $240k sold for $175k. The next house I short sold was $265k sold for $135k. Finally the last house I bought short sale I paid $218k for and today a year later it is worth $315k. Probably was worth $305k in reality when I bought it. Hope this helps a little but again it's all about local area comps.

I see a few sites that say bank owned and REO. Is there a difference?

What are your thoughts?

Matching depends on the list price. Under $100,000 no, Over $125,000 or so try. Over $200,000 def matching.

As for this whole NO FHA buyers thing....it seems like it works for you. But I will say, I bought my home with an FHA loan. For $218,000. The seller didn't have any issues with me for that transaction. So I would have been a good buyer you would have missed. Just food for thought.

@Jon Holdman Thank you so much for taking the time to write back with such a lengthy post. Some great information. However, I don't only see the happy path. I know there are many things that can go wrong. I also know much of this can be prevented by taking the time to find the right deal. I also know that not going ALL IN can also prevent a HUGE number of issues. I see investors use every last cent for a flip before they even get started. Meaning they have no way to buy themselves out of trouble. I don't go into any reno without proper budgeting, and having at least $10,000 - $20,000 left over. That's my personal way that I try and protect myself as best as possible. I've had to dip into those funds before, thankfully they were there for me. I am not an experienced flipper, no. But I have bought, renovated and rented out 4 homes since 2006. I have what 8 years or so in the real estate industry. This is all I've ever wanted so experience or not, I can and WILL succeed with the right information, training and support...much of which I find here on this site from kind people such as yourself.

I might need to start a new thread to continue this topic, but I will post here first to see how it goes.

Ok, so let's put pooling funds from personal loans on the back burner. I am working all sorts of angles to try and get funding.

What if I keep each investor's funds separate and use them for separate properties. IF I am working with more than 1 house at a time, using different investors, should I have multiple LLCs or can I use the same LCC for different properties with different lenders.

Here are some other thoughts/ideas.

I feel that I might be able to get small unsecured loans. $25,000-$50,000 or so. If so, can I just take that money, get with a HML or even a conventional lender or home path and work on 1-2 houses at a time with that money...with only the one investor involved?

I also feel that I may be able to get money secured by the specific property I will be buying. Perhaps up to $200,000. Can you please point me in the direction of where I can go to read up on how to structure such deals with my private lender and what documents I'd want, how to get the deals written up, etc.

I feel that I also might be able to get a family member to give me a 2nd mortgage on my home. I have about $100,000 in equity and I am not eligible for a conventional heloc at this time. I could then use that money on a deal without using funds from another investor. Can you direct me to information on how to structure this deal and get this deal written up?

These are some of the things I am thinking about/working on. What are your thoughts?

I am also in the midst of trying to find the right realtor to help me. I think the first several properties I buy will range from $30,000 - $60,000 in price. I don't want a realtor to think I am not worth their time. I also really want someone who is on top of the REO game but also not someone who is always giving me sloppy seconds that their other investors didn't want. Tall order isn't it? I tried using my personal realtor, I've purchased 2 homes from her in the past 2 years, but it was quickly apparent she wasn't the right realtor for what I am looking for now.

Thanks all for reading and commenting....

I'm still a bit confused as to why any of this comes under the sec. I am just wanting to get loans from friends. Can't I do whatever I want with that money? The loan items can not even talk about real estate. Just personal loans. Are we sure this means "pooling funds" and I have to then follow these guidelines that will cost me $10,000? What other ways are there around this?

ahhh that's so funny! It happens to me all the time. I've had some pretty funny things show up after hitting send! LOL

Yikes wait what? $10k to $25K just to do the paper work to be able to get the loans? WOW that's the only way?