All Forum Posts by: David Malik

Quote from @John Morgan:

I have 9 tenants with felonies on their record and they’ve been my best tenants. I’m all about second chances and it’s been rewarding getting to know these people over the years and watching them make a come back in life.

 This is very positive information going forward on our journey. Thanks for what you are doing and for your post.

Quote from @Chris Merchant:

@John Morgan Agreed, as stated I still do the typical background check as I do want to know who is occupying my property but most of these people strive to be better than their past and just want to do the right thing.  I currently have 3 with various criminal backgrounds and 2 of them said they were actually surprised when they were offered my units because they'd been turned down by so many others.  The other is not the main person on the lease he is living with his parents trying to get himself back on his feet, and I actually hired him to upkeep and maintain the property (a duplex) as far as grounds maintenance until he can get himself back on his feet.  But none the less all 3 are mostly just thankful for the opportunities I've elected to give them.

 Thanks for what you are doing here Chris. You are kind of doing a "life hack" for those in need of a hand-up.

Quote from @Scott Mac:

Too bad you don't have an additional program to help them not need that second chance--even a small one.

You know, like burning the candle at both ends.

Good Luck!

Thanks it would be great if they never felt a need, for whatever reason, to take that path BUT as I stated it is not about what they have done BUT about what they will do going forward! In addition, I don't walk around with rose colored glasses, grew up under very difficult circumstances, got a finance degree and am able to pitch multi-million dollar deals. Not one in RE yet though, but it will come, I'm sure. BTW, there are plenty wealthy and famous people who decided that the quicker path was the easiest, until they got caught. The difference being they are wealthy or have wealthy friends that QUIETLY give them second chances.

Again, thanks for the encouragement! We will need all the prayers and luck that we can accept and handle willingly and unwillingly. LOL

Quote from @Chris Merchant:

Awesome idea.  I myself have a criminal record, and like you said in your post have learned my lesson and after spending almost 5 years surrounded by only people with criminal records now I realized that most of them are not bad people, they made a mistake and have learned from it.  Yes while recidivism rates are high I believe it is the "system" that is the cause for most of the recidivism due to the stigma put on otherwise good people, and as humans we're going to do what we need to do to survive and provide for our families and if that means never getting an opportunity solely based off the fact of a mistake that was made and the debt paid than those are the ones that resort back to crime to survive.  Just my two cents, but thank you for what you're doing for the community because that is who actually benefits it's not just the people you're opening your services to.

This is also why, I do a background check but if it comes back with a criminal history I do not just automatically deny the applicant.  It is then that I will talk to the person and go off their character before making a decision.

 Yes, well said!

Then you have to make sure that the construction crew is really solid. In fact, that should be done first.

Welcome! We work with HM lenders across the country if you are interested in leverage. If not, much success on your new journey!

As a financial intermediary, yes, there are as I represent my share and we exercise due diligence in the process of partnering with one or the other. Many investors choose not to use someone like me because they believe that it will be cheaper to go direct to the lender. Well, that is not always true. 

Then there are newbies who don't understand how finance works in general and HM specifically. Understanding the lender's underwriting criteria is important and asking as many questions from them or me that you need is also important. Let's be clear. The HM lender has the right as any other kind of lender to refuse to participate in your venture regardless of how great you believe in yourself or said venture. They have their share of losses as well. That is the game. They want to do all they can to limit their losses.

I believe that people who, "paid their debt to society" deserve a second chance. Most if given a second chance will leave a life of crime behind them because they have learned their lesson and believe the risk of the loss of freedom is not worth the reward of the committed crime, at this point. I don't believe that the person should pay with the rest of their life for what they have done in the past. Therefore, we are working with those with criminal records who may want to get into RE investing or are already there. I am a financial intermediary that works with several different hard money lenders. Some of them won't touch it under any circumstances while others will look at it on a case by case basis. Some don't want to go on record while others are proudly singing the praises of second chances.

Yes, they still have to meet the underwriting criteria including down payment etc. Yes, we will do all we can to make sure the deal is a solid one, and yes, unfortunately, there are some lenders that once one of these deals go south will pull out. However, I know no better way of helping those who went started a career in an illegal entrepreneur endeavor to start a career in a legal one. It would keep them out of the system, they could perhaps learn a new trade and even become business owners. More importantly, my community would be safer with those doing productive work!

There are tradesmen, and women, who make more than I make with a college degree in finance. I have no issue with that as long as my plumbing, electrical, roofing, or other contracting needs are taken care of. Going forward, as always in asset based lending, it should be about the deal. While I am a second chance guy, I am not a third or forth chance one. That is for preachers and psychologist of which I am neither. 

I want to see this work and win for all and protect it by any means necessary, and legal!

As a finance guy in working cap and added RE and CRE this was a really good discussion, for the most part without insults, and I appreciate it. I work with wholesalers on the finance side, transactional funding. My cousin does wholesaling and I'm looking to expand my reach. Solid with good partners in SBA, and still learning from partners in RE. Thanks for this great question Ms. Berry and the great discussion that followed it.

Quote from @Bruce Woodruff:

@David Malik Of course everyone here is speaking from their own life experiences and just offering their best shot at some honest advice. It is up to the OP and others to sort through the thoughts and opinions freely given here, and decide what is best for them. There is certainly no one-size-fits-all here.

Going ahead with a college education can be purely a business decision to many...what is the ROI? Both on money AND time? Lets not forget that time thing.... :-) Remember the original question was about going into Real Estate Investing...

Just my .02....

No doubt! One of my favorite concepts in economics is "opportunity cost." Let's not forget that it applies to both paths the young man/woman will take college or straight to investing instead of college, as college indeed is an investment as you pointed out.