All Forum Posts by: Jake Parks

I’m not necessarily going after the property I was referring to, however that property is underperforming due to a severe lack of management because the owner is across country. It would have to be a cash purchase. I say I can get a double out this because of the price point of purchase coupled with increased NOI and some other fixes in expenses. I’m not concerned with the property performance as much as I am with complying with the law when I ask the question. Thanks everyone for your responses.

Thanks for your response Aaron Klatt. I would actually be at more of 50% equity position based on improved NOI. The properties value would be doubled. Additionally, when completing the refi the reason supplied for doing the cash Out Refi would raise some eyebrows I would presume, but I figured the bank would just ensure those people are actually paid off much like they would with a reason being for a cash out to pay off or consolidate debt with me keeping the excess cash.

Thanks. So would this be the case even though they wouldn’t be on any documents involving that investment? In essence, say I get $50k from 6 people via a private loan for each at 10%. There not involved an any way title, operating agreement, nor partner. Those loans would be a promissory note with a personal guarantee.

I want borrow $50k per person from my family and friends with a Interest rate of 10% annually (distributed quarterly or monthly) to purchase and rehab a deal, stabilize the property, and put debt on it from Fannie Mae. I would then pay them their $50k back thus owning the deal for either nothing or whatever amount I put in to get it done. My question - do I need to follow all the rules that come with the SEC/Syndication or if because it’s essentially a personal loan or hard money do I not have to?

Facebook me ( Jake Parks ) I have a deal coming up the first of the week that may be of interest to you.

I live and invest in Avondale, which is beside Lakeshore and also have a flip going in Lakeshore that I may turn into my own house for the time being. Good area, try to stay on the east side of a Blanding Blvd, but not horrible on the west side of it. Nice starter homes at a decent price point.