All Forum Posts by: Darrin Carey

@Jesse LeBlanc, Those are the same two addresses he attempted to use with us also.

@Jay Hinrichs They called the office, then did a transactional funding app, which is pretty brief.

Justin Nguyen tried hitting us for about 750k today in what to us was an obviously fraudulent transaction. Fortunately we caught it early on. Sadly, I think it was good enough that a newer person would have fallen for it pretty easily.

Be careful out there people.  

Scammers are attracted to real estate for the larger dollar amounts, and the never-ending influx of newer people who are easier to defraud.

@Amanda Green, It's a cool building with lots of potential. 
I had a couple people ask me about funding the purchase & renovation, so I am familiar with the project. There are multiple options for the property, the hardest part may be deciding which one to pursue.
@Randy Person had a good suggestion, tap into the local Real Estate Investor group at
https://www.facebook.com/groups/DaytonRealEstateInvesting, you'll find a lot of locals there happy to discuss with you. I'll be at the COREE meeting on Tues March 5, you can chat with me there also.

 Ask your end lender what they will allow.
That will give you specific information about your specific lender.

The lender will likely disallow a large rehab amount on the HUD for delayed purchase financing.

@Chris Mason, That's a good thought. I always ask those questions. So far the answers are pretty consistent, they heard to do it from some podcast/youtube/facebook source.  A couple "guru" names like P.M. have come up a couple times, but nothing consistently. I suspect it may be a couple people "teaching" it, and then it get's endlessly and breathlessly spread in the various forums.

There hasn't been anything tying back to me specifically other than I'm easily being found as a private/hard money lender.

Several local wholesalers and a couple local banks do call me out as a resource, however, we id those calls pretty easily. They're more typical inquiries anyway.

@Lydia R.
Well said overall. 

On a side note J Norton is my personal sh** list. He took a blog post I wrote, then read it almost verbatim and recorded it as a video and posted it as his own content. 

@Marc Maitre
Glad to hear you're out there busting your A**. Ten years ago I was flat broke and had to have a garage sale to get enough cash for bandit signs and gas money to get the wholesaling rolling. We did that until we had enough cash for a down payment on a flip, and then did both non-stop for the next five years. We added in rentals once we had enough cash to do that. Over 200 deals, maybe 5 of them I was able to do with little cash out of my pocket. A couple of those only after I had developed a track record with that private lender.

From a lender perspective, adding in a different property you already own with equity can count for skin in game. I'll consider other things too. One person was going to put up a classic car, at least until his property inspection killed the deal.

As a lender, we look for skin in the game and cash reserves for a couple reasons. First, it motivates the borrower to do well and solve problems when they happen instead of walking away. Second if something goes wrong, and we have to take the property back, there are costs to pay for, and then the cost of dealing with the property when it comes back. If there's no skin in the game, that all goes to the loss column. It's not just the final ARV ratios that matter. We're also considering what happens if you get run over by a dump truck the first day of rehab, and the property has to be foreclosed on in its purchased condition.

And you're right, a lot of us ground it out day-by-day to get where we are. The lessons learned, experiences, deals done, and more shape our expectations of potential borrowers.

Marc, I'll be happy to work with you when you are ready. Chat with me at the COREE meeting.