All Forum Posts by: Delon Hall

You should check out your Hard Money options. They are now lending long term so you have the ability to purchase/ refinance with hard money and cash out with a portfolio lender or small bank. I have used Lima One Capital to do this in the past here in Atlanta, you should give @Matt Lineberger a call. Im not sure If they are in Maryland but its worth reaching out to him.

With more than 32 different ways to invest in real estate and that amount of capital your better off saying what you dont want to do with the money than what to do with it. you have a lot of personal finance questions to ask yourself such as; your comfortability with leverage, the amount of effort your looking to put forth, your level of expertise and resources. 

Or, you could even question the idea of selling an asset that has a half of million in equity. there are a lot of details missing to really give you a strategy that suits your investment personality.

I believe it would be in your best interest to start working on your cash reserves. Similar to your small business, real estate demands working capital to promote growth and stability.

The amount thats needed in your reverse is much more of a personal finance question. I would begin with speaking with a Mortgage broker, personal finance advisor, and small business consultant/ mentor.  While working on increasing your income and minimizing expenses I would focus on finding lenders.

You might not be able to get the financing for a pricey property like a 4-plex so you might want to look at a duplex or investor friendly lenders that lend solely based on the asset. Like Lima One Capital.

"Safegaurd" -your only safeguard is through due diligence. 

I would only fund a deal with a rehab time line less then 45 days and avg DOM less then 30. like @Joel Owens said that should be no problem. I can typically do 4-5 flips with the same funds in a year.

There are to many variables in investing that will not allow someone to guarantee that you will have your funds on a particular day. Shortening the period of the funding terms will just increase the chances of default, it will not guarantee that you will have your money back by that date. By shortening the funding period is more of a precursor to limit the project time line of the flipper;  if i get funding at 6 months I only look at deals I can be in and out of rehab in 45-90 days (including permitting), less then 30 days Avg DOM, and 45 days to close. If I had 12 months I would look at new construction/addition/ small development, with 6 month rehab less then 30 days Avg DOM, and 45 days to close.

When I partner with my private lenders I ask them for a calendar year plan, If they have a big move planned like yours, a big event like a wedding or retirement, birthdays and/or anniversaries. Not to deny them of a partnership but to align their funds with a deal that suits their needs. Theres a deal out there for everyone, you just have to be honest with yourself and aware of your needs, abilities, and your limitations.

It really makes me uneasy when I hear investors say "I need." The first question you need to answer is a personal one, define "need". If for some reason the deal doesn't sell until September of 2016, will you still be able to eat, breath, and sleep safely. If you cant then you shouldnt. If you can but there are a few arrangements thats need then sure.

But NEVER invest with "need" money PERIOD, because then you blur the line between investing and gambling. I flip houses I dont gamble.

Wholesalers are an intricate part of my business and to limit my potential and profitability because of generalizations would be idiotic and in poor judgement for my business. I do agree most wholesalers do not have a clue of what they are doing but what industry doesn't have a weak link.

Carelessness, misunderstandings, and the inability to recognize and act on a good idea, creates opportunity for the next man. Investors pass up deals everyday because BAD wholesalers/agents don't quite understand the complete relm of investing and its almost like other investors just want me to have all the deals and they just want to complain about lack of inventory. There has been multiple times where i have had the wholesaler/agent go back to the seller reduce the price and get it at the price i need it and still give the wholesaler their cut.

I pay wholesalers for access not their expertise, thats my job. Wholesalers give me access to motivated sellers that I would not have the time or energy to access. My job is to then source and confirm their information and numbers. Good wholesalers just make my job easier they dont make me more money. Im not looking for easy Im trying to MAKE a deal.

This is why I love bigger pockets over 10 different users commented but it only sounds 3 have ever done a deal before. I dont mean that in a bad way, just take everyone's advice with a grain of salt (i guess i said that right) including mine.

1. Lock this deal up, give your self some due diligence time and figure this out while you have it under contract. If you cant figure this out before you can secure the finances atleast you have the option to wholesale it.

2. Call every lender in america until you get some one that will fund your deal. Get all there terms and fees before you take money from anyone.

3. I would never take on a flip if i could not personally afford $2,500. If you dont have $2500 PLEASE wholesale it and be done. if things go over budget, if you have to make draws on the rehab, if you have small fees that your responsible for, if if if. if you dont have $2500 liquid cash either find it or walk away.

4.Find some cash. the name of the game is get the deal done. Ask friends, family, co-workers, any one that will float you some cash so that you will have it IF (more like when) something unexpected occurs. offer them equity, interest monthly or for terms.

1. Go to your local REIA meeting stand up in the middle of the room and ask for a P & S.

OR ask a few Investor Friendly Agents.

2. Ask if any one could recommend a closing attorney/ title company that has CLOSED an assignment and/or double close transaction.

3. Meet with that attorney, tell them your intentions and have them review your contract.

When I first got started I contacted a local realtor and asked for their Purchase and sale agreement. Within the purchase and sale agreement you will have everything you need from a valid contract stand point.

***You do not have to be a licensed agent to use the Board of Realtors contract***

In all sections that do not apply simply put XXXX or N/A

If you are not comfortable with using the Board of Realtors P & S you can always have your attorney use it as a template.

- Actually everything you stated is an "Out Clause" except for assign ability. The only thing deemed necessary for a "Out Clause" is an If-Than statement. You must clearly state the parties duty and the preceding action there after. As far as an "Out Clause" the most important part is you inspection/ due diligence period, within this time frame you may back out for any reason, out side of the stated period you are now liable for damages I.E earnest money (do not get confused with down payment or option consideration).

I could go on for hours about what you need and don't need and once your finish trying to find this out, you'll be a contracts expert which is not your line of work. Focus on what you do best and that's doing deals. keep your contracts simple and to the point with full disclosure and leave the rest to your attorney.

You should definitely consider Atlanta, Ga and South-side Chicago/ Indiana. Currently Clayton County (just 5 minutes from the Atlanta airport) has the 2nd highest cap rate in the nation. *According to redfin*