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All Forum Posts by: CJ Edenfield

CJ Edenfield has started 2 posts and replied 13 times.

@Pearline Hardy

No. It is Tarek and Christina El Moussa. It may be the same company that is using them as sponsors though. Did you actually finance anything through them?

@Jay Hinrichs

That makes complete sense. Honestly, even with a family to take care of I would be willing to put a lot more on the line than those in the family are willing. I am confident in myself, ability and future success but I'm not the only person that lives at home and everyone's risk tolerance is different. Didn't Kiyosaki's rich dad say something like "broke is temporary, poor is forever". I'm not broke but I'll never be poor.

@Steve Vaughan

I completely agree. Personally, I'm not broke but not wealthy either. I'm actually not too far from being debt free, few years. IF, big if, the loans do not involve any personal guarantees then strictly the lending piece of this is interesting. I was never gonna shell out a bunch of cash for a mentor etc. But if there is an option to leverage the property and make money without any personal guarantees or out of pocket money..... It seems too good and very well may be just that. It 

Thanks to all! Jay, Ken, Wayne you have all helped confirm my hesitation with this avenue. Sometimes we just need confirmation that our curiosity will "get us" if we let it. Many thanks again!

Thanks Ken Vesely. I appreciate the understanding of your group's terms. And sorry for the bite. I knew when I asked this question I would get big red flags but I just thought it needed to be out there because I haven't seen any specifics about this program on BP.

Thanks Jay Hinrichs! You make a good point about the structure and whether it is actually a recorded loan. Until I hear of successes from someone I trust about this structure I am leery of getting into a situation where there isn't total transparency, regardless of the rates. That is primarily why I posted my inquiry on BP. An equity partner is something I would love to have. I am open and willing to build those relationships. I'm also willing to find deals for others for a fee or percentage of profits and the opportunity to learn a little each time. 

I won't do anything without a contract so expectations are clear but I definitely want to build that track record Jay. Thanks again for the insight.

Originally posted by @Account Closed:

LMAO - these tv "guru's" are great, flip a few houses, get on tv, have a few local lenders and then broker those lenders out to your "students" and get 2k per each connection to them and then probably get those local lenders 2x what they were getting from the "guru" on a flip. That's a great business model. 

Is there any advice or input here or just condescension? It looks like you are a HML. What terms do you typically provide new clients?

Originally posted by @Rob Beland:

The fact that this "TV Couple" is charging you $2000 just to talk to private lenders that will then charge you 30+% interest is setting off red flags everywhere for me. Its a waste of money. Do you really need to jump into REI that badly @CJ Edenfield? Talk to friends and/or family. Put together a small amount of cash. Do a small deal. Reinvest and do a bigger deal. Slow and steady. Show your investors how you can make them 10-15% on their small investment. Where else can they get that? Good luck. 

 Hi Rob,

My intent is to go slow and steady. I have no interest in quitting my job tomorrow. I don't need to be in REI because I enjoy my career and I am having success within it. I want to be in REI. I appreciate the feedback and advice to contact family/friends but I personally have an issue with that approach, for me. I just don't want to muddy the waters in any of my personal relationships that way. I have family with money and if at some point they approach me I may listen but until then it is not an option I am willing to entertain.

Long term, I don't see anything I have spelled out in my original post to be an option. I understand how crazy it seems to some but it also seems like a lot folks in this industry have been told they were crazy at one time or another. This is just an option as a starting point and one I was looking for feedback on. I am trying to develop some relationships now that may allow me to "bird dog" for them. After some time this would allow me to put enough cash away to start investing myself. But it takes some time (which is fine) and comfort to develop those relationships from what I am experiencing.

I appreciate the well wishes and wish you the same. Thanks!

I recently attended a seminar where a popular TV couple was the sponsor. Now, before we get rants regarding the levels and $$ they ask to shell out for training etc...my interest in this post is targeted to understand if there are other funding methods similar to what they are offering. I understand that anything a Guru or training class can teach can also be learned here on BP. I am interested in their funding option.

However, as a new investor I have read, researched my market and different funding options as much as I can while trying to digest it all. That and searching for a way to fund my first deal. I have begun to develop some relationships here as well. I am not really a novice in the real estate world but certainly a first time investor. Like many us looking to "get in the game" I don't have the cash necessary to put skin in the game for a hard money lender or for a down payment and while all the no money down options, like lease options are awesome, they are relatively hard to find and even more unlikely to close as a newbee. So, a more traditional flip or wholesale deal are more likely to get us started.

For me, I understand how the numbers work. I'm an accountant and as stated on BP many times the math isn't super complicated. If I miss something it is simply because I am new and need a little seasoning. I say that to say I feel confident, not arrogant, I can evaluate most of the deals I put together with reasonably expected cost and profit. (On to my question)

So, the funding option available after the training is 2-3% interest each month on a 3-day or 90 day loan with what sounded like options to extend a month or so if approved - with no money down, no credit check (important for some - not me), no income verification etc. (3 year option also available) The loan is based off of the property and it's value. The money is obviously private money. Basically these sessions and training are a way to gain trust, provide the lender with some confidence that the folks they are lending to have an understanding of what they are doing at some level... all in an effort to get them to allow them to fund their deals. Each deal that is submitted is also reviewed for certain criteria such as....any deal under $100K must have at least a $20K minimum profit (which is doable in many deals I have actually put together) or any over $100K must have a 20% profit. Now I understand that the 2-3% per month is expensive money, 24-36% annualized. Anything from 10-18% is a typical HML so I get it. It's not cheap..... It also is, possibly, the only offer I have seen that allows for the full cost of purchase and rehab to be financed without any money down. That is not important for most. It is for someone who is starting out. The term is definitely a risk and can be a short turn around on a flip but it is really hard not to consider. There is a risk from the lenders perspective because they know many of the people they are funding at first are inexperienced and while they are hedging their bets a bit by requiring certain profit levels and requiring high interest rates it seems...understandable, maybe, because these folks don't have easy access to the capital otherwise. Ultimately, the $2K that must be paid to go through the training is more an access fee that allows you to go to their lenders and get loans to fund deals that otherwise were out of reach. By the way, the $2K is refunded if the first deal is done in 90 days. A drop in the bucket if $20K profit is required but it is at least something I guess. Anyway, all this is to ask if there are other programs or lenders out there that provide loans with no money down. If so, I would love to hear about them. If not, are there any other options that HML or private partners/lenders provide that allow access to funds for investors that isn't 10-20% or more of the total cost?

While the option presented is expensive...a just as risky option, IMO, is to get a 0% APR credit card, transfer a big balance off of it to my account and use that as my skin in the game for a HML.

What are your thoughts? All responses and information are appreciated. Thanks