All Forum Posts by: Janelle Stamos

@Brian Napierala Thanks! Speaking in general terms, how would I come upon those referrals? I know BP has specific rules about seeking access to capital (for good reason) but I genuinely don't know how or where I would begin the process of seeking these introductions or the most polite/respectfully savvy way to ask for them. 

Any tips or blogs or videos that I could refer to would be appreciated!

I am reading through the forums about the extreme importance of choosing an ethical, skilled, open-minded, knowlegeable, etc good lender. 

This makes sense. 

As a brand new person I am going through the Bigger Pockets forums trying to piece together what people say the hallmarks of these good lenders are. Is there a way I can tell from their website or social media? Is there a key question I should ask to separate the good from bad? 

Any tips at all on how to do anything more sophisticated for my due diligence aside from flip through Google, look to see how BBB lookup goes and hope for the best. (I'm willing to do that! haha) 

It seems a very big deal to do this search right. Any pointers would be appreciated. 

Thank you

Also a note: I of course want to create a profit from this but I am very willing to have my win on this be after the partners recoup their investment + percent. So I am very open to how this structures itself and I have a lot of sweat equity/hands on/feet on the ground ways that I can make this a no-maintenance deal for any funding partners. 

Just wanting to say...I'm being realistic about what I can expect in immediate returns with such an unorthodox setup for this deal. And ready to roll up my sleeves to work to try to make up for the capital I don't have at this second. 

I am reading here that those type of realistic expectations are important to have :) 

Very, very grateful for these great questions and helping me get more educated.

@Andrea Lane

Q: Do you have money to close the deal?
A: Less than $10k cash to invest right now. I am hoping to have $100k in 6 months. What I can do is provide property management, AirBnB management, admin management for the deal and also I will have funds to invest in 6 months like I mentioned. Will that be meaningful to say that I can bring? 


Q: Have you done your due diligence, and do the numbers make sense?
A: I have followed YouTubers to put together an overview. I think that the numbers make sense. I hope they make sense. I have been also reading through the forums here to make my numbers be more clear. If there is a particular Bigger Pockets thread that I might read that'd be awesome (if anything immediately comes to mind). 


Q: Are you looking to wholesale the deal? 
A: No. I want to either buy and hold for rents OR upgrade and flip will be fine. I have planned to tell the lenders that I am open to their suggestion.



@Aidan Wong

Q: Do you have enough to cover closing costs?
A: As of today, no. The seller is trying to close by the end of December and yes I will have that available to cover closing costs then. I have taken on a second job to have money to put into this as of last week. So I will have some funds of my own as quick as I can. 


Q: Do you have financing in place to cover the 20% gap funding for the purchase?
A: No, I do not have that personally. I saw something on YouTube about 'second position' lenders for that gap. Is that realistic to try and find? 


Q: Do you have an exit strategy if the deal goes sour?
A: What I saw on YouTube is that I need to have at least 2 months of vacancy contingency and also be able to pay the costs of marketing to put it back up on market. I can have that by December. Would I need something more than that to have a good exit strategy? 



@Jesus Roman

Q: Would this be a flip or a buy and hold? 
A: I am open to either one. The property as of today is producing over $25k/mo in rents (with less than a 20 days per year vacancy rate as the current owner is an AirBnB Super host). I was planning to tell the lenders that I am open to whatever they choose. Is that wise? 

Thank you again. I appreciate this reality check and wisdom very much.

Hello, 

I am a first timer at all of this. I rent 1 unit on a multi-unit property lot. 

The owner of this property intends to sell. It is not on the market yet. I asked out of curiosity if she was going to sell and she said yes. 

I do have either immediate cash or credit for the amount that the seller wants to bring the deal under contract. 

After Googling, I have read that private money or hard money might be a path forward for me in this deal. 

Do private or hard money lenders typically fund earnest money to bring the property under contract? Is that a thing they do? If yes, are there any tips for how I can take this to lenders without getting cut out of the deal? (I read on Google that this can happen) 

Thanks for any advice. I am a first timer and the availability of this property came up quicker than I thought!