All Forum Posts by: Brett Russell

@Matt E. , how are you financing the deal? If you are getting a loan, are you willing/able to come up with additional money upfront to make up that difference? It will significantly alter your return.

@Todd Scripter , whether people have direct experience with this "guru" or not, I can assure you most people on this site would say to save your money and spend a weekend reading the forum and the blog, listening to the podcast and engaging with others.

@Caleb Gutierrez , private financing (unless you get it from the seller) should come from people you already know, so by definition you really shouldn't be advertising looking for it.

@Ricky Fleming , you made a great choice checking out BP... you'll be amazed at all the great information here.

@Edward Rife , read what your post says and look at it from someone else's perspective. I think you just forgot punctuation, but currently you seem to be asking someone to mentor you, provide all the capital and do all the leg work. Why would anyone do that?

Now, what I presume you meant was that you would do all the leg work for a (presumably) very small cut to get the benefit of mentorship. People might be more open to that, seeing that you are bringing something of value to the table.

I would also recommend uploading a profile pic so people can develop a relationship with a person, not the generic profile pic.

Just my thoughts.

@Ken Palmquist , save your money and spend some time reading on BP. I'm sure if you use the search function, you can find more specifics about Scott Yancey.

Hi @Robert M. and welcome to the site!

Obviously you have some good experience to share and there is a ton you'll be able to learn here as well.

There is a good contingent of SE Michigan folks here so be sure to engage and reach out. @Tom A. have been organizing informal monthly meetups so look for those as well.

@Ray Hayward , if I understand your question correctly, I believe you're asking why someone would be willing to provide seller financing to someone buying their property.

If someone does not owe money on the house, and therefore does not need to pay anyone off at the time of sale, and has no immediate need for that much cash, then they very well might be able to earn more by financing the sale themself. First of all, many people are willing to pay a higher price if the seller will finance, and then the seller also will earn more interest than they would've if they took cash proceeds from the sale and put it in a savings account. Plus there may be tax advantages to not earning so much profit all at once.

@Fednel Vilcant , private lenders are people who know you and loan to you because they know/trust you. So, they're probably not going to care about your credit, but they must trust you and think you're responsible and knowledgeable enough to make a deal work.

Theoretically, some hard money lenders might lend exclusively based on how good of a deal you have, but they are probably still going to want some personal guarantee from you which will come back to your credit. In either case, I'd expect them to want you to have "skin in the game" with a reasonable sized down payment (in addition to their points and interest).

If you're talking about getting conventional financing to an LLC, you're going to find that next to impossible unless the LLC itself has good credit history. I would suspect your LLC is brand new in which case no credit is probably just as bad as poor credit and/or the lender would want a personal guarantee.

Hard money and private lenders could (and may prefer) to lend to an LLC rather than you personally, but with the same issues I mentioned above.

Your best bets are probably to either find a great deal and partner with someone more experienced who can bring the money and you learn from them in exchange for a small part of the profit or find someone in your personal sphere who has idle money and trusts/believes in you to be a private lender.

@Steve West , as @Andrew Syrios stated, private lenders should be people already in your sphere of influence. So you might have to seek out their interest in investing, but you shouldn't be seeking out the initial connection.

For a first deal, you will probably just have to find someone who knows you, believes in you and is willing to loan you money. After that, it should be a bit easier (assuming you were profitable).

Some suggestions I've heard (note: I have NOT yet done any of this, so take with a grain of salt) is to mention your successes when people ask "what's up?" "Oh, I just profitably flipped a house and helped my grandma make a good return on some of her idle money. Do you know anyone who would be interested in participating in something like that?"

Good luck. I'm hoping to be seeking private money in the near future myself.