All Forum Posts by: Jamaal Johnson

Good morning all!

I was pondering through ways to approach various leads I have received through Direct Mail campaign and figured I would throw a few questions out to BP for experienced lenders to give their take on. I feel the answers to these questions will provide solid ground for any newbie who is thinking "what should my next steps be".

1) How much should a new flipper expect to come out of pocket for when doing first couple of flips? (Typical Points/Interest and up front downpayment)

2) What is the process like when the borrower is needing a draw to pay for work completed?

3) After how many flips with a lender should the borrower expect to receive more lax terms? (Less out of pocket cash)

4) What are mistakes you have seen from Flippers you have dealt with via Hard money loan?

5) How can a blue collar worker with low to no personal assets/income work around this dilemma to obtain Downpayment for Hard money?

6) How often are interest payments wrapped into balloon so there are no out of pocket charges to borrower during construction/market for sale of property?

@Jay Hinrichs I was hoping you can answer a few of these given your background as a lender & your overall REI experience.

ALL COMMENTS ARE WELCOME!

Christopher,

The answer to this question is pretty much universal. Hard money loans are only short term solutions. You will absolutely want to have an exit strategy set in place. Generally hard money would be used to buy/fix up a property and then REFI into a conventional loan if holding. Make sure your numbers are right before getting into something like this (you make your money when you buy) and force appreciation to maximize equity position prior to approaching bank with REFI request.

God bless.

Casey, It is legal nationwide to wholesale however make sure to get all purchase agreements/assignment contracts reviewed by a local attorney to ensure you have the proper verbiage & contingencies. You may want to look into getting real estate license soon however for the benefits of MLS. Once you have enough capital for DP on hard money loans this will be absolutely necessary if you want to make it to the big leagues.

God bless.

Good morning all!

My name Jamaal (Call me Jay) 22 year old investor looking to network with others in the awesome world of real estate!! Its such a blessing to have a site where like minded individuals can come together and throw around ideas and help each other scale their business to the next level. What I am looking to accomplish with you guys is to build lifelong profitable partnerships through single family/Multi-family wholesale and flip projects. One thing that we must understand is not only wasn't Rome built in a day, but if the architect attempted to build it himself it would have never been done. Helping each other further our investments and business is a sure fire way to get us to where we desire to be. I look forward to building a future with my BP family!

God bless,

Jay

Good morning all!

I am curious to know how successful some of you have been when it comes to virtual wholesaling. Below is a few of the following things I have been trying to wrap my head around and wanting to see if you guys can give your feedback.

A) How do you find/market to properties you have never seen?

B) How do you collect the necessary data to package to your buyers?

C) In short, What is the process like from negotiation, locking in contracts, assigning and closing with individuals that you have in some cases never even spoken to?

I have these weird vibes that I get when pondering the unknown when it comes to real estate and that tends to lead down an endless road of "what ifs". Hopefully some of you guys can address these few things so I can get onto making deals and my neighbors stop thinking I'm schizo from from watching me blab at myself !! Just kidding but all jokes aside ,All feedback is welcome!

-Jay