All Forum Posts by: BRANDY MEADE

Someone has asked me to provide a short term private loan of $10,000. He is currently selling his home and will be purchasing a new build in another neighborhood. He needs to put a $10,000 deposit on the new lot to reserve it. He is asking for a loan of $10K to use for that deposit and will pay off the loan at close of escrow of his current residence. 

He has asked me to name the terms. This is someone I have met through a local real estate investment group. 

What terms would be considered fair without trying to be greedy?

How would you structure the deal? Would I have to record a lien against his current property to be assured of being paid out of escrow?

I'm not sure if I would use personal funds, or funds from my self directed 401k. If using the 401k, are there any issues I need to be aware of?

By the way, I did some preliminary checking and believe he owes about $345K on his current home and it is listed at $449K. He received an offer today (don't know amount yet). I believe the term of the loan would end up being 1-3 months.

Thank you for your input and time.

Brandy

Hello David,

Welcome to Prescott. We also live in Prescott / Williamson Valley. My husband works in traditional real estate, and we have 1 rental property in the area. We have 5 children and moved here 12 years ago.

We'd be happy to talk to you about anything you want to know, and my husband can update you on ways to get your classes done, although that isn't a requirement to get into real estate investing.

Please feel free to message me if you'd like to connect.

Brandy

 Dave,

I'm curious about your choice for a location if you were doing again. Are you saying awkward location on busy street because you don't want to be in a neighborhood? We're trying to rent our previous home and almost everyone who has called wants it for a group home. I'm not sure how we feel about that.

Hello, As someone who needs to get a handle on the chaos in their life, I was wondering which of these three programs you would recommend? I've heard really good things about Getting Things Done, The One Thing, and Steven Covey's 7 Habits. Hass anyone tried these programs and which do you recommend? Even becoming productive can be riddled with shiny object syndrome. ????Looking forward to your replies. Thank you.

Hello,

We may be renting out our current personal residence as an investment after purchasing a new home. My question has to do with having some storage for us at the rental property. We have an oversized 3 car garage. There is a 2 car side, and a separate 1 car side with a wall and a locking door between them. I would like to give the 2 car garage to tenants as part of the rental, but keep the separate 1 car side for our own personal storage. Does anyone know of any problems with doing something like that? Someone told me we would have to give 48 hours notice before coming on the property. I'd love to know if anyone has experience with something like this.

Thank you for your input. I love Bigger Pockets!

Brandy

Hello Bill,

I don't live in Phoenix, but I know of 2 companies in Phoenix that work with some investors and or agents that I know. The people I know are in Prescott, but are associated with firms in Phoenix. One does fix and flips and also some retail. The other is an investor as far as I know. The 2 agencies are Dominion Real Estate Partners and the other is Valentine Sales and Management. I don't know a lot about them, but you could call and find out more. I hope that little bit helps.

Hello,

I'm hoping I can get some advise and direction. I have a pension in a cash balance plan and I need to access some of those funds. I am not old enough to access them without it being considered an early withdrawal. My goals are to get some of the money for living expenses. (I know this is not a financially smart move, but it a result of being laid off for a few years and now working part time at a reduced pay). Aside from that, I would like the rest of the money to be available for some future RE investing. Am I better off rolling over to an IRA or starting a solo 401K to be best positioned for accessing the money for investments? I would also like to get professional advice, but I am wary that not all financial professionals understand how to be creative (within the law, of course). Is there someone on BP that has a lot of knowledge about this type of thing? It is all a bit overwhelming to think about and try to understand how to protect as much money as I can in llight of our situation.

The lump sum is just over $100K and I am almost 49.

Thanks,

Brandy