All Forum Posts by: Ashton Davis

Hello, Alex Spieler

I'm in a similar position, but as I'm still several months out from really looking for my first deal I've just been practicing analyzing on market deals. Between Sussex and Kent/ out a Realtors MLS access it's really slim pickings. However I have seen an influx in for sale by owner signs out in yards in Sussex county. So driving for dollars or reaching out to someone with off market listings would be a great place to start.

I will more than likely be looking into the Wilmington Dover, Newark areas as I want multifamily buy and holds. As pill be BRRRR I will need a larger market to continually purchase in. This thread seems to have great people on it to explore and learn that market should you want to go further North.

I will say in my little corner of the state Amazon is supposedly purchasing a warehouse so should be generating some new job opportunities hopefully.

@Ivonne H. Magdaleno

Thank you, I certainly thought about that as well and think it would be a great option. Maybe a little more risk than I’m willing to accept with his current situation, so I’m shifting to a private note and leveraging him as a private investor. Do you have any knowledge on actually formalizing a private note?

We are in the begging stages of planning my REI future and for my first deal. I have a committed private investor, but as neither of us has done anything like this before there are so many questions we want answered so we know exactly what we're getting into and who to reach out to.

I’ve found several forms of notes online that seem straight forward that we can use as a template. However there are options to notarize, or just have a witness. This PI is a close family member so repayments not a concern, but from a legal standpoint I feel we should get it notarized.

1. If they wire the $80k that will be on the note, are by there fees (other than document fees with attorney who notarized ) we should be aware of?

2. Is the lender charged any taxes or fees for wiring that amount to another bank acct?

3. Are their fees, or tax implications for bower and lender when the loan is paid back in full plus interest?

4. Is it better to make payments over the course of the loan, or pay back in full? Lender is comfortable with either, but want to minimize fees, charges or taxes.

5. Are there restrictions on how man times the lender can lend you money? As this is a note (from a family member) not a gift it’s not taxed as such for the lender correct?

Thanks I’m advance for any feedback. Everything I’m reading online is like “get a private lender” and they give you money. I couldn’t really find details on the actual financial intricacies of that process actually happening.

@Olivia Radziszewski

Thank you so much for the positive feed back. I have an investor in my father-in law as hes sitting on capital, it’s trying to find a way to leverage that I my first deal. Gift tax has me concerned, and trying to research the best way for him to physically invest the capital of the upwards of $75k in our first investment. As he is not bankable and we are on the edge of being able to idk if it’s time or an action plan we are needing to look at.

Hello everyone, and I hope this isn’t too long of a post. Let me set the stage by saying I’ve never invested in anything other than my W2 401k so this is all extremely new to me. Most of the jargon is foreign to me, however I am in the process of reading books and listening to podcasts (such as the ones on BP) to begin my investing journey. So take it easy on me..

So here is my situation.

I work a 9-5 at a dead end job in logistics to put my wife through school while she is working on her masters in the medical field. We just sold our first ever home of 4 years for over asking price. We eradicate all of our debt and are in a credit rebuild process, and are now renting (mon documented) a finished room at my father-in-laws house with our two kids while we were saving to build our next home. Unfortunately my mother-in-law passed away during this time at an early age leaving us in a crippling state. My mother-in-law was the primary bread winner in the household there was a decent in’s. policy left to my father-in-law.

So the question.

My father-in-law has a good deal of equity in the home, but is, and has been unemployed for the last couple years, and has horrible credit. My wife and I have stable incomes and decent credit. I am looking to BRRRR in our market, and was waiting for credit, capital, and my knowledge base to build up in order to use "cash" for my first deal. But I see this situation as an opportunity to maybe cash refi- loan his mortgages, taking and using the equity to purchase out first deal while getting a better interest rate overall.

Should we just continue to wait? Or is there some kind of creative way to leverage this odd situation to begin our new endeavor? What would be the best first steps, or people to reach out to for the best most accurate information?

Sorry again for the long post and somewhat obscure details, but any helpful advice would be appreciated.