All Forum Posts by: Cody Steck

Very interesting question.  I am interested in the answer to this.

The first thing I would do to figure this out is get a real estate attorney and a medicare insurance agent together and have a chat. 

Wow this thread is great!

Sorry if this has already been covered, but what kind of terms are you offering to investors who invest their cash with you to lend out? Are you giving them the full interest return from a loan and you are getting paid on the points in the transaction? Or how does that work?

It will be hard, you can try finding wholesalers by calling the numbers on bandit signs. It is most likely a wholesaler or fellow flipper and you can network with them and get on their buyers list.

Attend the UVREIA meetings, (if you aren't already) you will find all of your local players there.

Try reaching out to Matt Atkinson. He can help point you in the right direction for whatever it is you are seeking. 

@Paul Timmins can you elaborate a little bit more on the business line of credit? How does this work and what is it backed by? What are the terms normally?

I would offer at 70k and go from there. She said herself "I will go through my papers and double check my numbers just to be sure that your offer can or can not be worked with."

To me, this means that the number is *close* to working but just not quite there since she rejected the offer. That 5k difference might be enough to make the numbers work Or, she is playing hard to get and the 65k works but, since she knows the sales game, she is playing it knowing you will come back and offer $70-75k. 

I really see the only option as an LLC. Especially with multiple members. LLC's are fairly easy to set up and will more easily allow you to setup an operating agreement to make sure all members agree to the terms

What about a master lease option with another investor?

Cap rate is Net operating income divided by asking price. With the numbers you provided, and given that they are accurate, Your NOI is 3341/month which is $40,092/year and then you divide that by your price $475,000 which gives you a cap of 8.4%

@Richard Rachal 

# of lots rented X current rent X 70

 Where are you getting the "70" in that formula? and what does it represent?

Hmm, makes sense. 

Thanks for your help