All Forum Posts by: Daniel Halsted

How do you go about contacting the lender to find out how much someone owes on there property that is already in pre-foreclosure?  Are there public / subscription web sites for this or can you just call the lender direct?  I would imagine they would not  talk directly with someone outside of the mortgage but by pre-foreclosure there must have been a trustee assigned with a law firm or am I wrong?  

Quote from @Emily And Eric Erickson:

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $226,000
Cash invested: $19,000

3 bedroom, 2 bath house that was an eviction and previous landlord just wanted out. Bought as is with a cash partner, cleaned it out, put a new roof on it, fixed the AC, replaced and cleaned carpets, new water heater and got it rented out for $2,085 per month on a lease option basis.
Cash investor is completely passive, I take all of the calls and did all of the above.
Will be a great investment for a long time!

What made you interested in investing in this type of deal?

It is the model that fits my abilities the best

How did you find this deal and how did you negotiate it?

Found the deal on MLS. Beat out another investor who wanted to flip it and couldn't pay as high a price. Price in a long term deal is the last thing to worry about, it is all about the cash flow

How did you finance this deal?

Cash from a passive investor

How did you add value to the deal?

Found the deal, saw the potential (listing agent didn't even post any pictures because it was a MESS!), negotiated the terms that was below list price, got a free roof out of the seller after inspection, did all of the repairs, marketed it when ready to potential renters, qualified a tenant, moved them in!

What was the outcome?

Cash flowing property in under 2 months

Lessons learned? Challenges?

Working with cash investors is GREAT!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I represented the cash investor as the buyer's agent.

Did you bring any money to the deal or was it all from your private lender/cash investor? As is the case every where else, cash buyers seem to be the only one's closing and I have been going at it using my own cash for down payment and conventional lender when making offers with no luck. Being new and still building my network of other investors and RE professionals I'm still fumbling around but have assumed most of the "cash" buyers are using private lender / passive investors for this. If this is the case how are your agreements structured, JV or LP? Would really like to know more.

Thank you for your reply, that's in line with what I was expecting.  I am accredited and am sitting on my capitol to participate in the right fund, be it apartment syndication or now private lending.

By investing in the fund of a private lender do you mean as an LP, similar to a syndication? I would like to hear more about the process, terms, expected ROI and duration.

I recently opened an EQRP solo 401K and it was suggested that I look into using the funds in the account for private lending.  I'm familiar with private lending just not being a private lender, is anyone else using a solo 401k for this?  if so, how are you structured to keep transactions in and out of the account separate from showing as a contribution or withdraw?