All Forum Posts by: Amy Solomon

@joe gore good question...keep em coming...as it keeps me thinking. And at this point that's all this is right now. My thoughts, and getting them together. All of the people I have in mind are family in some respect, in-laws, cousins, uncles, etc. They all have money, some of them PLENTY of money where to be honest, loaning $100,000...sure they don't want to lose it...but they wouldn't miss it if they did. Now that is NOT to say that I would treat their money that way...not at all. In fact, I may be OVER confident in my abilities to not lose money. My business plan has several exit strategies, but none of that matters when before we get to exiting, we start with entering. I'd of course only be buying homes that I was getting at 50-60% of their value. This is a pretty (almost) sure fire way not to lose money (so long as we also know what we are getting into with property's condition and needed repairs). I also live in one of the top 10 flipping markets in the US...that helps. I know the area I plan to flip in very well, from the comps, to the schools, the residents etc.

Ok, so all that aside, it depends on how much they loan, as to could I repay them. I expect some to lend $25,000 to $50,000, and then yes. I could repay that...I'd work and work and work until I did. I always pay my debts and I hope they'd know "i'm good for it no matter what". But for those I think might lend $100,000 or so...I don't have access to that kind of money for repayment other than the equity in my home and of course the equity in the home I just paid cash for...that's always a good way to repay. (just selling the flip even if not for a profit) ;-)

Perhaps I am naive and in some ways I am sure I am. However, I feel that their money WILL be secure, because I won't be getting in to more projects than I can afford to fix should something go wrong, I won't be overpaying for houses meaning I should be able to throw something back on the market after minor cosmetic updates and get back at least what I put in, recouping that money albeit not making any (and that's ok if things get sticky).

I'd love to hear more thoughts on this plan I have brewing. And as for the using my home as collateral, how does that work? Offer them a lien? Allow them to be a second mortgage holder?

Without reading any of the replies, I personally would stay away from a condo. It may seem smaller, so less risk, but the risk is the same. And the fees are higher. High condo fees, association etc. If it's a lower price that attracts you,,,,there are plenty of homes out there in the same price range that don't come with all those yucky fees.

I'm jealous! My first flip was off of 434 in Longwood. Second off of Lake Mary BLVD.... I just love the area. My old stomping ground. Now, I am looking to turn this hobby into a business, but I am in Jacksonville. It's a GREAT area for flipping, however, I have to learn and make all new connections. From realtors and contractors to flooring and appliances.

Welcome and good luck! :-)

I notices at home depot the other day what great deals they have on "open boxed" items, returns, or items that were returned and repaired. In Orlando we had some really great places for appliances...in Jacksonville FLorida I've yet to learn of a great place. Sounds like you got a good deal though. :-)

I don't think 5 or 10% will be too hard, as these people will have been unable to sell their properties, and now, will have all their money within 6-12 months (or sooner if I have anything to say about it) when they thought they'd never sell. But that could just be overly optimistic thinking.

I THOUGHT I had a good idea, but now reading about SEC I am not sure. I am working hard right now on my business plan and investment proposal because my plan is to ask for loans from some people I know who have money. These were not going to be based on any deals. My goal is to raise $300,000 in unsecured loans (or possibly secure with equity on my primary residence but that's another post all together). They'd lend me the money at a rate we agree on, and a term we agree on. The money would then be mine, in my account. I would use this money however I needed, paying cash to buy flips, paying for down payments if I get a loan, paying for renovation costs on seller financed flips...really whatever I wanted, however I wanted/needed.

Basically my question is, is there a problem with this? I don't know much about the SEC and what kinds of loans fall under their guidelines. I guess I thought this wouldn't...because I will be the only one on the deeds, these would be cash deals as far as purchasing is concerned.

Please let me know what you know. And more questions on this raising of funds I am working on will come later! ;-)

Hey everyone! I will have tons more questions coming regarding getting things off the ground. I am looking towards several forms of financing. One includes something I haven't seen talked about on these boards. Which is a seller financed flipped.

My goal is to offer a seller who may not be able to sell to a buyer with a conventional loan (or perhaps just hasn't been able to sell due to home's condition) a 6-9% interest rate, 0 points, 5% down, interest only payments with a balloon in 12 months.

MY question is, I won't be using a realtor to help me find these deals...(i think) so how can I find the true arv? I need to see comps on other homes, realtors.com doesn't allow me to do this (from what I know). What's your advice on how to thoroughly research, find comps and get a good arv so I can know if it's a good deal?

Thanks for your help!

awwww I see. Auto correct change my goldmine to gold mine as I typed it so that's why I saw no conversations. I see many threads now. Thanks.

I did that and there was no discussion on them that's why I posted. :-)

I am looking at all the ways to ge the money i need to finally jump in and make this a business.

I came across a website private money gold mine that supposedly has a list of private people who will lend based on each deal and not each person but unlike hard money lenders they don't charge up front fees and they charge between 6-12% interest.

You have to pay to get access to this "list". I don't know how much, didn't go that far. Does anyone Know anything about this? Smells fishy but could be for real.