All Forum Posts by: Eric Johnson

@Jon Holdman thanks for the inquiry.  Yes, it will be a conventional loan.  The other investor will be managing the property.  The investor's goal is to refinance after 3 months and cash me out.  The property is worth $600K - I will actually be getting an appraisal to confirm this.

@Bill Jacobsen Yes I see the potential problem based on your figures.  However, I failed to mention that the property is generating $4,585/month.

A fellow investor presented a short-term investment opportunity to me.  She asked that I provide 100K to help with the acquisition of a fully occupied 4-plex for a period of 3-6 months.  Consequently, I'll receive 1.5% per month.  She is also putting up 20K of her own money.  Total acquisition cost is $400K.  Bank requires 30% down.  

My question:  If I'm not paid, what recourse do I have?  Considering the bank will be financing the deal, I will have a junior lien position in this deal, correct?  Therefore, I couldn't commence any foreclosure procedure could I?  Looking for some input on this.  I would like to do it, but I just want to know what recourse do I have being in a subordinate position.  Thanks in advance.

I've actually done this myself, That is, I took out a HELOC (the MAX) on my residence. (The money was so cheap (%0.99 first year) that it just made sense - HELOC via credit union.) I'm only charged interest on the amount I actually use. For example. if my HELOC is for $100K and I only draw $20K, I'm charged interest on the $20K. However, the $80K is still there for me to use.

If they are truly motivated and your email response states you are willing to pay cash and close quickly.  They should call/respond regardless of any fancy email template you might use.

In addition to direct marketing, I have magnet signs on my car.  I've gotten a few calls using this method.  Also, I put my business cards on the driver's side window of cars in parking lots of, for example, Home Depot, Walmart, Target etc.  

"...where do you get the prospects to send the direct mail to?"  I use a website that provides prospects based on the criteria you input.  I will PM you the website.

Eric

@Andy Collins - Thanks.

@Kimberly H. - Thanks for the comment.

@Matt Devincenzo  - Thanks for taking the time to explain.  Really appreciate it.

@Chris Martin - Thanks for the information.

Eric