All Forum Posts by: Darrin Carey

Jay,

We do transactional funding too, no problems there.
One thing I had not considered was the much higher transaction price on the coasts; that certainly changes the dollar amounts involved. 

In our area,
- a down payment for 25% of the purchase price is often only 20-50k, 100k at most.
- Earnest money is often only $500-$1,000, and the seller has to agree to release the earnest money if the deal doesn't close for any reason.
- Closing costs are pretty low too, just due to transaction size. 

At least you're sophisticated enough to know it's high risk and you're taking the majority of it if something goes wrong. I'm starting to hear stories like the newbie lender who put up 250k+ for the down payment for a newbies LA deal, and now they're SOL.

A repeat business with a good track record should have no problem with having some skin in the game. If they don't have that ability, it makes me wonder how good their business really is, and what'll happen at the first hiccup.

You can just show up, there's no registration required. Feel free to reach out to me ahead of time with any questions on the meetup or Dayton investing in general.
Hope to meet you there.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.

The people hitting me up lately have been broke. The last one had a total of 67 cents to their name, and wanted a hard money loan over 7 figures.

You're in a much better position, as you have most of the funds needed and 3 properties. If the SFH have some decent equity, bringing in the shortfall could be a reasonable risk for a private lender. The lender may ask for a piece of the equity or cashflow in addition to the interest rate to compensate for the additional risk if the deal is thin.

You could also look for a JV partner to bring in the extra cash, but be careful with that. There's a whole different set of risks with partners.

I'll assume the Instragram swindlers are similar to the one YouTube and FB.

Darrin

As a private lender, I'm suddenly getting a lot of requests for three things that concern me.

1. Lending the Downpayment (behind another hard money lender)
2. Lending all the borrowers closing costs
3. Lending funds for putting up earnest money

Personally, I think putting up money for those items as a lender is EXTREMELY HIGH RISK. Out of 500+ loans I've done, only a very few have had problems.
Every one that had a problem had one common feature, the borrower had little to none of their own money in the deal. (Early ones, I didn't know better. The couple recent ones, the borrowers lied about it, and I found out later. Those borrowers made the forever banned list. Not because the deal went bad, but because they lied about the source of funds, and ghosted everyone went the rehab got hard)

Is there someone out there teaching this as a strategy to borrowers and potential lenders? 
Are people really making these loans? AND getting paid back?
Am I missing something here?

Darrin Carey

Come join Dayton area Real Estate investors for food, fun and beverages. Build your network and meet other Dayton investors. This is a networking event to make connections, share knowledge, experiences, strategies, and have a little fun while we're at it. We promote teamwork with your peers to help everyone succeed.

Here you can learn something, find a deal, sell a deal, or find that agent or contractor you're looking for.

Join us: T.J. Chumps in Fairborn, OH, right off interstate 675. We'll be in the private room on the left past the hostess station.

Oh, you should expect 60-70 people to be there. The event says it ends at 8pm, however, some of the real estate addicts stick around and close down the restaurant.

This event occurs on the second Monday of every month, same time and location.