All Forum Posts by: Erick Jordan

While I truly appreciate your input here Jason, I am not asking for help writing an agreement at all.  I was asking for input about how to approach the situation.  I will have an attorney draw up anything I am doing, thank for your concern though. I am glad to see great PROs like yourself on here helping out.  That is what makes Bigger pockets so great!  People are welcome to make any comment they would like, helpful or not...smh.

I understand that and would do so, but this is not a deal for one property and would not be a "mortgage".  It is a deal for a set amount of money for a year at a set interest rate....  Insurance will be set up to cover the lender in the deal but the "loan" will basically be a lean hold on each property for the value used in that particular deal....  Dose that make sense?  I am open to input, lol

I have been doing deals with my own money but I just found my first "silent investor" and I need to know how to set up the money so that everything is legal and done right..... anyone got input here on JV deals or OPM?

Please do not let me offend you but here are some facts holding you back. There are a few thing in play here.... First if you are looking for deals on Zillow which is ok but you have to realize that the "deals" on there are not fresh to begin with.... by the time they hit Zillow they have already been on the "Coming soon" list of the local MLS and then once they go active on the MLS it takes un to 48hrs to hit Zillow and the rest of the sites. Second, as an investor you are not looking for prime property so for most agents they are not going to make good money on any investment property deal, typically low commission deals anyway. When you show up as a new investor to them, the agent already knows that it is not going to be a big fish property, so they are not going to make it a top priority to bend over backwards for you or a cheap house.... understandable, because I am an agent who also gets the 5-10 calls a month from people looking a cheap home for "deals". They know that you are looking for an investment and also know you are most likely going to want to lowball the property from where it is already listed so unless they know you as a person buying 5-10 of these types of properties a month it is not worth their time and effort to deal with these home in a timely manner. So what do you do at this point....? 1. work with a well known whole seller until you get your name out there. You can get on their email list and you see plenty of properties that way. Look up FB group for investment / whole sale in you area of interest 2. work with an agent you have met and talked through a buying plan with. Typically newer agents are very welcoming to investors who are really looking to buy now, just try then until you find one who is competent and motivated. 3. If property is really moving that fast then only use Zillow for reference at this point. 4. Make sure you are "ready to buy" do not waste people time. 4. MAKE SURE YOU KNOW YOU NUMBERS, do not rely on anyone to tell you what you will make on a deal unless you have verified there knowledge and skill on comps. Let me know if this helps!

I will post finished photos shortly

Investment Info:

Single-family residence fix & flip investment in Commerce.

Purchase price: $63,000
Cash invested: $74,000
Sale price: $189,000

Complete 100% remodel of 2 bed 1 bath home to make a 3 bed 2 bath home. I closed in the garage to make a master bed / bath / walk-in closet and laundry room. Completely new HVAC, roof, and septic system.

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

the numbers made sense...

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

It was a wholesale. I got it for 3,000 below asking on the deal

How did you finance this deal?

cash/card, all personal. 100% on my own

How did you add value to the deal?

I am a Realtor so I just looked at the actual comps in the area.

What was the outcome?

I made almost $40,000 on this deal so I am ok with it.

Lessons learned? Challenges?

I took WAY to much time getting this done, lol. Make decisions faster. Make hard calls sooner than later.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, me Erick Jordan!!! lol. Let me know if I can help you with anything!!!

I belive I missed the party but I am interested coming to the next meet up.

In TX where I am, it is very common to close in a garage.  When closing a garage, is it cost effective to raise the slab to the level of the rest of the house or is it ok to leave a stepdown of 3" into the new master suite?  

I have a contractor that operates a 501C3 NON-profit and they would like to use it to do work on my flip.....   I do not know anything about a 501C3 and need to know if anyone here has had any experience working with them?  Any information would be greatly appreciated.   I am also looking for any investor minded CPAs to talk to.