All Forum Posts by: Edwin Epperson

@Account Closed I know of an excellent attorney with Hand Arendall Harrison Sale based out of Destin FL.  They not only draft loan docs and closing docs they have their own in-house Title company.  Shoot me a PM and I'll give you their contact info if you still want to go that route.

@Anthony Pearson do you have the deal or do you have the financing?  I do not invest in that space but there is a GC in the panhandle of FL who is looking for capital to develop a large lot into an RV parking area, along with tiny homes.  I can make a connection if you have capital or are able to qualify for capital to make the deal happen.

Investment Info:

Single-family residence private money loan investment.

Purchase price: $50,000
Cash invested: $48,000
Sale price: $125,000

This project was one of the early loans I made in my career. The real estate investor was an experienced Jacksonville rehabbed, and they had a program set up to pre-qualify downpayment assistance buyers to be able to buy their houses. This loan was a short 6-month loan, with an easy turnaround. This was an interest-only, purchase loan. Because they handled all the renovation, which was $43,000 we only required 10% down on the purchase.

What made you interested in investing in this type of deal?

The borrower is an experienced real estate investor with over 100+ properties completed over a 20+ yr career. They understood and respected my need to be in a protected position, and they provided 100% of the renovation costs as well 10% of the downpayment on the purchase. They had a well-oiled team they had been working with for many years and were able to get in and complete the project in record time.

How did you find this deal and how did you negotiate it?

I met the borrower from a FB group back in late 2014 or early 2015. I appreciated their approach to making affordable houses available to an underserved community in downtown Jacksonville Florida. They assured me they would handle 100% of the renovation and 10% of the Downpayment as long as we could close really fast. We accomplished a 3-day turnaround on the appraisal and were able to close within 7 Business days.

How did you finance this deal?

I financed this loan through my proprietary "Turn-Key" Private Lending solution. This allowed me to partner with several capital providers and me into an irrevocable trust that my company was the trustee for and I made the loan through the trust. My capital partners were secured in 1st position, through the Trust and we all earned monthly interest for the duration of the loan. I explain more about my "Turn-Key" Private Lending solution on my website, www.bbcfunding.com/turn-key-solution

How did you add value to the deal?

By not requiring a ridiculously high number of documents we were able to process, underwrite and close within 7 business days. HOWEVER, this was because this client was a REPEAT client, and I value repeat business. I will always bend over backward to help structure a deal for the benefit of all parties, including my real estate investor.

What was the outcome?

The Project was completed and renovated within 45 days, and listed on the market. Unfortunately, because the investor focused on families needing downpayment assistance, the first buyer fell through after spending 60 days in underwriting, and it was the 2nd buyer that we need up closing on 60 days later. There was NO delay in getting it under contract as the investor was diligent about lining up potential buyers for the numerous properties they flipped in the Jacksonville area.

Lessons learned? Challenges?

Never assume that an accepted sale contract is all you need. Continue to market and work to identify additional buyers. Even if the 1st buyer goes through you now have a potential buyers list that you can quickly send notifications to about upcoming projects.

@Emily Lowery first off, congrats on taking that first step!  I hope you are locking up deals and slamming home runs.  As I work with a lot of real estate investors, this will be a struggle for you for probably the first couple of deals, maybe even longer.  It's hard to tell which contractors are in the business for legitimate longevity and whose in it to make a quick buck and move on. The "one-hit wonders" abound in the industry.  You will also find that solid GC's with a solid crew, who can perform ON TIME and ON BUDGET (Within reason) is truly a diamond in the rough.  So it should be no surprise to you that when a RE Investor finds a GC that can meet the above requirements, they keep their information close and confidential.  Whether right or wrong that's just the way it is and here is why.  Their thinking is that "What if I refer them out, and Emily has one, two or more projects with my preferred GC, and the GC cannot handle my project?"  As you can see this kind of thinking will drive RE Investors to hold their work-horse GC's contact close to the heart.  Again whether right or wrong that's not the issue, I'm simply letting you know this could be a hurdle you come across. I do have an investor here in Tampa, not sure if his GC would travel out to Orlando, but his GC is pretty solid and on time and on budget.  I'll ask him if he is OK passing out his information.  Again I know I could do that anyway, but I respect my investor enough to know that the GC he uses is one he has worked a long time and hard to build a trusted relationship with.  Relationships are worth more than dollars, they are worth the future.

@Michael B. There is an investor looking to do the tiny home/ RV park in the Panhandle of FL, near Fort Walton Beach. There could be a way that you leverage the $900K so that you're not putting it all into one project, and can spread it out. I would honestly say that should be a goal of yours, leveraging a DSCR lenders capital, along with a combination of purchasing and Joint Venturing with owner-operators to spread your risks, as well your portfolio diversity. The JV option allows you to tap into equity/ cash-flow without having to manage the assets, and the leveraging DSCR lenders for your own asset portfolio allows you to take that $900K and spread it across several performing assets. Yet as @Scott Wolf mentioned it's your 1031 and your financial future, we can not tell you what to do. 

If you would like any connections here in FL I can provide the Tiny Home/ RV park GC, as well I have some 1031 QI's that could help if you have not identified one yet.  Best wishes and much success.

@Ezekiel Williams, having capital is an important part of starting off and being successful.  There are tow ways to accumulate the capital required for a RE Deal.  

#1: (Easiest Route/ Min. experience gained) - Do an accounting for how much capital you can invest and attend a local RE meeting or network on trusted sites like BP.  Ask if there are any of the experienced Renovators/ new construction investors who would be willing to accept your accept to partner with them on a deal, in exchange for a piece of the action and more importantly the ability to shadow them on the deal;

#2: (Easy Route/ Min. experience gained) - If you do not have a sizeable amount (think between $30 - $50K) then see if there are people that you know, family and friends, who would like to partner with you as you partner with an experienced investor, see point 1 above;

#3: (Challenging Route/ Experience gained) - Identify a strategy that allows you to work in a RE Investing strategy with minimal cash outlay, such as wholesaling.  The biggest cost of wholesaling is the initial marketing.  If you have between 2-5K for marketing avenues (door hangers, post mail, print ads, social media ads, and networking memberships) you should be able to generate a few wholesale deals that if negotiated properly can put between $5k - $25K+ in your pocket per deal.  You then would have the financial backing to go out and do your own project while leveraging someone else's capital (such as mine)

#4: (Very Challenging/ No Experience gained) - Keep working and trying to save money from your W2.  Unfortunately, too many newer investors fall back in this mindset, and they can never get off the ground.  Don't become like one of these investors.  Take the risks and do something to gain some experience. Reading books, listening to podcasts, and attending seminars is NOT gaining experience. It's gaining knowledge but not experience.

Best wishes and much success in your efforts!  When you have some capital, between $30 - $50K I'm more than happy to discuss ways I can help you take your investing business to the next level here in FL.

@Ashton Baker I'll shoot you a DM

Vance Congrats and that sounds awesome! Where is the property located at? Are you doing STR out of each room or LTR for each room? Who are your primary tenant base? (Traveling professionals like yourself, college students, contract works?)

@Ashton Baker funny how a 2yr old post gets revitalized right? I love the area, especially 30A, and I was interested if you have made progress over the past two years since you first posted? It has been a really hot time to buy there in the panhandle and with STR/ Corp Retreat homes on the rise, I was interested to know where you found your niche. If your ever looking for investment capital, happy to help. Best wishes and much success.

Robert, excellent and welcome to BP!  I know of some investors, who I fund, in Bay, Okaloosa, and Escambia Counties.  Happy to take a look at some of the deals your looking at, and if I would fund them, I'll send them over to my borrowers.  Best wishes and much success!  Reach out and connect via private message and I'll send you my direct contact info.