All Forum Posts by: Dave Blackman

Hi everyone - recently purchased several multi-family 8+ units and a commercial office space and insurance carrier says that fire extinguishers need to be installed throughout and inspected annually.  Does this typically mean I need to buy an extinguisher for each tenant to have in their unit or just in common spaces (stairwell, basement storage, etc)?

On that note, do you have any recommendations on good internet wholesalers of extinguishers and who you typically use to perform these annual inspections?

Many thanks in advance!

This one is more for the note veterans on BP -- I have an opportunity on two commercial notes from a small bank that cover several MFHs, a SFH and a Mixed-Use Office bldg -- it's an interesting one bc the borrower is a non-profit, communicative and will be doing a DIL for everything immediately upon purchase of the notes, which will allow me to acquire the 6 buildings at 55 cents on the dollar of what they're worth vs. buying them as REOs which would be upwards of 75-80 cents on the dollar. Some of the units are already rented providing immediate cashflow and light to medium rehab on each building will get every unit rent ready. The plan is to rehab, fill with tenants and sell as turnkeys to local investors (there's plenty of them in this particular market).

As I don't have a large JV network and since the acquisition cost is relatively high (low six figures), I'm having a hard time finding a JV to fund the deal, which is frustrating since the opportunity is so nice and there are many plausible exits (or holds for that matter). I have seen questions out there before regarding people looking for HMLs or private lenders that fund notes, and have yet to see a positive response -- but aside from that, do you have any suggestions on getting lending for acquisition of the notes, which could be refinanced to a real-property loan within a very short period (less than one month) of time once the DIL's are recorded?

Appreciate any thoughts or advice!

@Matt Horwitz that makes sense -- I called the IN SOS and they stated that according to the statute, as it relates to buying and selling property in IN, filing as a foreign entity is not required -- but as you said, it leaves the door open and takes away the ability to take legal action.  Worth the hundred bucks I guess since I'll be filing a return in the state anyhow.  Appreciate the response!

Thanks Scott! Just to be clear I live and my LLC is registered in California.

Much appreciated!

Anyone with experience flipping in the state of Indiana know whether it is required to file your LLC as a foreign entity there in order to purchase property, rehab, then sell it? I spell it out since flip can mean many things to many people. Much appreciated!

Agreed - gave me a great base, though you need to take the initiative to expand on the basics he teaches you and learn as much as you can from as many different people as you can (Youtube, books, conferences).  This isn't a business you want to get into without really having a good foundation as to how to avoid the lemons and the lemon sellers.  The best education is diving in though once you do as experience is one of the best ways to learn what to do and more importantly what NOT to do (again). :)

I 2nd Bulldog -- I invest heavily in KCMO and have used them extensively -- I typically do the "investor inspection" package -- cheaper and looks for the most expensive items (foundation, roof, appliances, etc).  I'm not going to live there so I don't need them pouring through every nook and cranny.

@Drew McLaren I participate on both sides -- I give money to investors I trust from my retirement account and also have my own business where I receive money in the same manner.  1st liens are relatively low risk as long as your partner is selecting assets where the investment purchase is less than the value of the property that secures it.

@Brent Olsen @Eric Hyde I'll be at that conference -- I've recently made the transition from absolute newbie to relative newbie (have purchased 5 notes in the last month and already converted one to profit!).  Shoot me a PM and we can arrange to meet up there, first beer is on me :)  Happy to give whatever advice I can.  In the meantime, I'd recommend Youtube, and a lot of it.  Scott Carson, Dave Van Horn and W.K Mencarow are great sources to learn about 1st Lien Notes and Sandor Lau and Gordon Moss to learn about 2nd Lien Notes.  Best of luck and hope to meet at CDM conference!

Another option besides investing in a "fund" is to invest directly with note investors as a "joint-venture" -- where you provide the funding and they source and manage purchased note assets, which passively pays you a split (typically 50/50, but some investors like myself go 60/40 favoring the "lender") on net profits resulting from interest received or sale of the note or property (after DIL or foreclosure). If the investor knows what they are doing, achieving 12% ROI (and often higher) is very doable with your investment secured by the property tied to the note.