All Forum Posts by: Jack BeVier

I totally agree with the previous posts about being wary of upfront fees. We've been lending since 2002 and have managed to set up a process where we don't charge any upfront fees (not even an appraisal fee - I go out of pocket to do my own valuations) so that we aren't making any money at all until a loan is funded. It keeps the conversation honest, cuts out the frustration of an appraiser's (sometimes incorrect) opinion of value, and aligns incentives so that everyone wants to get to the table quickly. My fall through rate with borrowers is incredibly low, so what do I need to charge upfront fees for? 

Hey Isaac - are you buying any at the courthouse? We have a number of borrowers in NJ and I've been super impressed with the margins that they're pulling down on courthouse purchases. It's a labor intensive way to buy houses, but the margins seem to be worth it in NJ still (unlike other states like AZ and CA). 

Hey Johann, I'd agree with your approach to lock down your source of financing first. Not only is locking down a "real" deal much harder when you can't confidently promise a closing date, the reputational damage that you'll suffer if you bail on a deal that you can't get funded will be a major hindrance to doing repeat business. Best of luck sir! 

AC - please give me a call to discuss. I'm very interested. Also please send me any additional deals you have in the future in the Atlanta metro area. We're a cash buyer currently purchasing about 25 houses per month outside I-285.

Thanks.