All Forum Posts by: David McAlexander

Ok guys, now I assume from my research in the forums and basic common sense that this is a scam, but I wanted to get some opinion.

I started working with a hard money lender that said he's set up his own company to lend out his own private money, and I met him through a Facebook group for real estate investors. We talked about the deal I had found and he asked for some documentation to approve my ability to repay a loan if he have one.

He said I was good to go and came up with terms but is now asking for a fee to process documents/paperwork/etc. and wants it wired to an individual account...

Right there I slammed on the brakes and decided this was probably a scam. I haven't seen a lender of any sort want money wired to them to proceed and as I understand if there's any sort of origination fee this should be given to a closing/title company to give out once the transaction has completed...

Correct me if I am wrong here or can someone verify that this is probably a scam? Thanks all!!!

Anyone know of any portfolio lenders in Iowa and can share some experience in using the specific lender?

I have called every single credit union/small town bank/etc. that I can find and talked with their personal and commercial agents and it doesn't seem like anyone is offering this and a portfolio lender would potentially fit this specific deal I'm looking at perfectly based on my research.

I appreciate any and all help anyone can give!!

I need some advice as this is something I haven't seen in my short years of investing and I scoured the forums and articles looking...

I was offered a deal but in being a bit aggressive to start this year my equity is tied up for a couple months, but the cash flow is amazing($572) and overall ROI for this buy and hold looks great on a single family with a current long term renter, zero repairs needed, so even though I hadn't tried before I thought I would offer seller financing.

Seller has agreed and after negotiating we've agreed to terms that offer that cash flow I mentioned above and give immediate equity, but he wants $5k down and I can't change that.

My question is, especially considering I have never done seller financing before and my equity is currently zapped until I refi and/or finish the flip/sale on another deal, do I raise funds for a down payment and how would I structure that? Or should I hard money loan this and not worry about that period?

OR do I just say I am being too greedy and work on my current deals and pass this one up and forget about structuring $5k worth of private money or the hefty price tag of a HML?

I'm doing all this while repairing my credit from my some dumb moves a few years ago so putting it on a credit card or taking out a HELOC is currently out of the question, but I can raise private money and get a HML, just have currently used up my personal network of private money lenders for my current deals.

I'm sure I'll get plenty of people telling me I'm doing it all wrong to begin with but this has allowed me to bring in the money to correct a lot of my past mistakes so just looking for advice on this please and thank you!!!