All Forum Posts by: Darrick P.

Jon Holdman Thanks for the response, probably much more geared toward the answers I was looking for.

Will Barnard Thanks for the response. Your response(s) would probably be better received if they were worded better and not in such a condescending tone.

FYI - no one was trying to cut corners. This note was not drafted by me but was presented to me and I didn't think it was sufficient.

I have done my best to block out the names for privacy purposes. I'm wondering if this note looks good to any of you who have used or written promissory notes before?

http://darrae.com/public/note06052013.pdf

How does one ensure that the property address and parcel (crossed out) indeed under contract by the borrower and should there be a request to be the first lien holder instead of the second?

Thanks in advance.

http://darrae.com/public/note06052013.pdf

K Lewis - It's been a month.. what happened? I went on a rehab tour walk through with my local REI Group for $49 (Full day event and it included lunch)

The one thing I did find absolutely impressive was that he offered a refund if you didn't make 25k in one calendar year when using his materials.

Last night while at my local REI meeting Andy Heller was the speaker. He spent a fair amount of time talking; first during the pre-meeting and again for two hours during the regular meeting. His niche is REO's and of course he was pitching his product, Fortune Launcher!

I couldn't find any "bad" reviews on this guy and he's been pitching his product for 7 years. The one thing I did find absolutely impressive was that he offered a refund if you didn't make 25k in one calendar year when using his materials.

Fortune Launcher wasn't overpriced (coming in at just under $1500) compared to other guru systems so I decided to sign up for the workshop (I did not buy the system) he will teaching in a couple of weeks at my local REI, the workshop is/was $39.

Once I got home I began to research Andy Heller and his system and didn't find any used Fortune Launcher courses on ebay or amazon. Good sign? I didn't find any negative reviews of his F/L system. Good sign? Offers a public, no questions asked refund. Good sign?

I did a search but really didn't find anything that I could relate to my situation so here are the details. I'm working with an experienced investor who has taken me under his wing and after building a relationship we're going to be doing a deal together. The deal is for one house and 3 empty lots all owned by the same person. We're picking up the house and lots subject-to with 30k left on the mortgage. The owner will get 30k after resale and there's 75k in rehab work to be done. So that puts us at 135k. The ARV of this 3 story row home (not including the lots) is 400k. That gives us a ton of room to work with.

Once we get the properties under contract we plan to rehab and sell the house and keep the lots for future development of (3) 3 Apt. Row home buildings.

Since we have not formed and LLC together and he found the deal. I'm not sure how I protect my investment for my part of the rehab. I'm asking here to make sure that I'm not being taken advantage of. This is part of my due diligence to make sure that I'm going about things the right way, even though I have no reason not to trust my soon to be partner. The plan is to split the cost of the rehab 50/50 and after the sale of the house, pull the rehab money out and roll the rest of the profit over into developing the lots (at which time we'll form 1 or possibly 3 LLC's or S Corps together for those deals to protect ourselves if something goes wrong with any of the individual projects).

Should I have my name on the Subject To contract along with his for this deal? I'm just at a loss and would like opinions of how to protect myself in a situation like this because after the sale there's a ton of money left on the table.

Thanks in advance.

Does anyone have a deal analyzer spreadsheet they're willing to share with me? I guess I'm looking for standard fees like Title Insurance, Escrow Fees, Legal Fees, Recording Fees.

I have a couple different spreadsheets but they're for different states.

Thanks

I actually joined FB University on a trial basis (for one month), it's what $100 a month but I couldn't justify the cost with the webinars being of such low quality.

Thanks for the responses. I'm sure that I will have to do my own due diligence. I just assumed there were some sort of standard questions that a rehabber would ask as to not miss the deal.

What questions should I be asking Wholesalers? Since once the I buy from them I'm stuck with property. I know I have to do some due diligence but part of that is making sure that they've done some; right?

Besides the price? And know "my" MAO - what should I be asking them so that I don't get burned.

Can someone post a link to a form or template of questions?
I used the search feature but was unable to find anything and using the keyword alert didn't produce the results I'm looking for.

Should I pretty much be asking a wholesaler the same questions I would ask the seller?

I think 65% is very ambitious. I've always heard 70%