All Forum Posts by: Dell Schlabach

I dont know the particilar REIA but if you like at the cost vs potential benefit.

Are you doing something else during that time that has a better potential of being highly profitable for you. 

 Welcome to BiggerPockets, great resource. Years ago we used to flip some houses in Knox and Cochocton Counties. 

These days we are focusing up north further. But have a lot of good memories from down there.

Wish you the best in your real estate endeavors. 

If I can be of any help let me know. 

@Robert Lytle welcome to BiggerPockets.

We flip quite a few houses in NE Ohio, If you have any specific questions about flipping houses, ask away. 

In summary I was told, don't borrow from people who don't understand the risk, no amount of disclosure will protect me if I do. 

Don't lose money.

Always pay my people back.

Keep my lenders happy. 

Don't put more then one lender per property. Give them a mortgage, promissory note and Name them.as an additional insured.

Only you know what your questions are, the answers are only as good as the questions you ask. 

My questions should have been along the lines of what's the best way to structure a private real estate loan. 

My local real estate attorney was more them capable of answering that as well as my primary private lender who had done literally hundreds of private loans.  

Try describing your real question, including your real objective on biggerpockets, I suspect you will get much more practical advise then you will get from a securities attorney unless you are planning on pooling money or doing a syndication here's a good source of advise...

http://www.syndicationlawyers.com/about-us/jillian...

We buy from both, I suggest you buy where the numbers work.

You can also search top right hand corner,,there are a lot of threads discussing both of them. 

Good luck

I have interviewed a couple, I was told by my local RE Attorney that I need to go with one of the big firms, Buckingham Doolittle and Burroughs, or Shottenstein Sox and Dunn out of Columbus to get the securities questions answered that I was asking, and I had a lot of them after attending a couple private money seminars. 

I met with both firms top securities attorneys, interesting conversations and conclusions.

Today we don't use a securities attorney, although we have a couple million in private loans.

I just make sure we dont borrow from little old ladies who don't understand the risk, there is no amount of disclosure that will keep you out of trouble if you do that, even with the best written disclosure signed and acknowledged by your lender. 

We do all our loans, one lender per property, only from people who have a reasonable understanding of risk. They get first mortgage, promissory note, get added as additional insured, pretty much what a bank would get if they funded and carried the first mortgage. 

Sure simplifies things. 

The best thing to study is the materials for the course. 

If you want to start studying early, sign up early, get the books and start studying them.

I am in real estate classes right now, most of the students dont even read their msterials befire they come to class, according to a hand count the other day by the instructor it eas less then 20% had read the chapters we were going to cover that day. 

Good luck with your study. 

@Cory Woodruff reminds me of one of my private lenders. I was walking through a local coffee shop, sitting at a table with some relatives was an acquaintance I hadn't seen for a few years, couple minutes of small talk of what we were doing, I mentioned our rehab business, and kinda joking said he should invest some of his rusty money with us. Gave him a one minute summary of what it looks like. I wasn't expecting anything from him as hes known as mr frugal conservative, and we said our it's been good to see yous.

Later that afternoon I get a call from a 20 something girl that was sitting with him at the table, she asks some more questions, said she and her husband had saved up some money to build a house, but they aren't going to be building for about a year, if they could get their money back within six month they would fund a rehab for us. 

Many times money comes from unlikely sources. 

After people fund one deal and they get paid back in agreed time or a bit earlier, they tend to fund again and again and ask you you need more money,and then they tend to tell their friends.

Unless things are different in Africa, the biggest problem with the strategy is, most of the houses going into foreclosure are underwater, the owner owes more, then the house is worth, otherwise they would just hire a realtor and sell the house before auction.