All Forum Posts by: Howie Baker

Our company is looking to do a direct mail campaign to the area apartment building owners where we would like to invest. We have received a list of the owners from our title company and this is where we hit a snag. A lot of the owners of these buildings are registered as corporations, partnerships, or LLC's. The secretary of state website in California will divulge address information of these corporations but not any phone numbers. The only names listed are those of the "registered agent" who may not necessarily be the best contact person. Of course any skip tracing follows individuals not companies. Any suggestions on how to proceed and who to mail to for the greatest success at contacting these companies would be greatly appreciated.

By the way, the company I am working with now was created by a contact I made here on BP just by reaching out to the local investor list for a meet and greet!!

Brian and Ryland,

Thank you both for your advice and opinions.  The hardest part of this is feeling like I was taken advantage of by a friend.  The lesson seems to be more about deal structure and taking steps to be assured that I have an out to take over the property if the original investor is not performing or have some type of collateral in position that will be used as a guarantee if defaults.  I am still hoping that he will rediscover his integrity and figure out a solution.

I appreciate the help!!

Howie

Greetings Pro Members,

A person I have known for five years and who early on in my career acted as both a mentor and coach for me got me interested in being one of several private investors in a high end flip he and his partner did in the San Francisco area.  They purchased the property as a Land Trust.  They ran into trouble in how they managed the property and I believe they had a falling out with each other though they did get the property completed.  The project has been completed for two years now and I have not seen a dime.  My friend (I actually had traveled with him and hosted him at my house a few times) has completely gone off the radar and will not return any calls or contact attempts.  He had proposed a payback schedule three months ago that was supposed to start in June, I have not seen any money nor heard from him since, though he continues to work as a real estate agent in northern California.

Does anyone have any suggestions as how to proceed? The money lost hurts but in the grand scheme of things won't make or break my retirement fund that it was a part of (self-directed IRA).

I will say that despite vetting him for years as a mentor and coach and knowing other successful flips he has done I thought this would be a slam dunk, obviously I was terribly wrong.  I left a message asking him to listen to Will Barnard's recent podcast about always making sure your investors get paid back even if you have to take a loss, I guess he has not listened yet.

Any thoughts would be greatly appreciated!!

Sure leaves a sour taste in my mouth for the work that we do, because so much of our success is due to the trust and integrity that we put into our efforts.

Howie Baker, D.V.M.

Hi Bigger Pockets,

I am looking for an attorney in or around Los Angeles to discuss surplus funds.

I look forward to hearing from someone soon.

Thanks for your help.

Howie Baker

Can I safely purchase an inexpensive home using money from a private lender than sell it to an end buyer (either owner occupant or another investor) with owner financing creating a spread on the interest rates thus creating cash flow for myself and financing for a buyer who may not qualify for a conventional loan? I would make money on the down payment and cash flow or sell the newly originated note in the near future, pay off my private lender and pocket the difference.  Are there Dodd Frank rules I need to be concerned with?  Thanks so much!   Howie

First of all thank you Bigger Pockets for creating a platform that allows me to reach out to other investors for networking (as well as great education and help with deal structure, calculators, etc.)  From my networking through BP I found another local investor and have began working alongside his company as an acquisitions manager!

My question is how do other BP'ers research possible areas of growth and appreciation to get into emerging markets?  I get the idea that even knowing a large investment area like the whole city of Phoenix, I need to have some degree of boots on the ground to understand the more defined smaller areas and neighborhoods where growth and appreciation occur.   I am specifically in charge of locating apartment buildings with greater then 20 units.  Do you all have some suggestions how I whittle down to cities, municipalities, and finally neighborhoods to locate the best areas.  Any input would be greatly appreciated!!

Howie

Great Post!  Finding the Balance in our lives...so very important!  My mindset and a deeper understanding of my purpose for working in real estate has always been to grant me the freedom to enjoy my life, with my family, my friends, my kids and our love of travel and play (something that most typical 9-5'ers are not able to accomplish).  It helps that I love the adventure and challenges that this profession offers, I love getting the chance to form connections with people that will be beneficial for the both of us, and I love getting to upgrade and improve people's lives while beautifying the planet as well.  So, the chance for more family and friend time and an ability to make pretty things....Sign me up!

Greetings Monique!

Welcome, this is a great site I hope you explore and utilize all its options. I have a question for you, a few years ago per direction by coaches, mentors etc. we formed an LLC here in California for the purpose of using it in our real estate business. Since then I have done most of my investing passively through my self-directed IRA. We have never used it in a deal, but we are currently moving towards becoming more active investors and may need to use it in the near future. We have not kept up on the annual requirements for meetings, minutes, etc. as the LLC is made up of just my wife and I. Can we bring it up to date safely so as the protection it will provide us in the future is still intact? Thanks for the help!! Howie

Hey Alexis,

Is he doing this for buy and holds?  Is he placing the private lender in second position or is he giving them an equity position in the properties?  I think for the private lender with proper due diligence on the project and the person doing the deals they can mitigate their risks.  I don't see a problem for the man setting up the deals this way as long as the deal is structured to be successful, just is more challenging when you are financing 100% of the deal.

Howie

"Our success begins with our thoughts of creating a successful life, our mindset and our belief in our own success is the most powerful tool we have"....Howie Baker, D.V.M.

Hey Robert I agree with Cory, your best bet initially and a big part of this game is to enlist the help of an agent and expand your network as well. We use Redfin out here in Los Angeles which can provide some pretty good comps though I do not know if it is in all areas of the country. You might find help from your local REIA club, I am working with a broker that allows me a level of access through his MLS membership, all because I did a meet and greet with him! You also want to make sure that you prove your willingness and desire to be a benefit to them as well, share with them your plans for yours and their real estate success.

Howie

"Our success begins with our thoughts of creating a successful life, our mindset and our belief in our own success is the most powerful tool we have"....Me