All Forum Posts by: Jarrin Benson

Welcome Charles. Looks like you're off to a good start. You'll find a thriving investor community here in Portland. Good luck!

Sorry- my original reply should have said pro forma where I said prospectus.

Mathew, I started out as an audio engineer myself. Let me know if I can help your people navigate the local production market. All of my work is national and international, but I do know some great Portland companies to work with. 

Originally posted by @Mathew Wray:

Hey Jarrin, 

Welcome to BP! What a cool entry to real estate...my family has a couple of budding sound engineers who are learning their craft so it’s good to hear there are opportunities out there in the industry. Your business background will be incredibly helpful to you. Lots of agents treat real estate like a hobby instead of a business and have no idea about budgets, P&Ls, cash-flow, or even that they have to pay taxes on their commissions! By having a solid business base-I’m sure you’ll do great for yourself and your clients. 

I’ll see you around the meetups and the forum!

Mathew

@Jesse Rivera hi Jesse, I’m planning to come to your meetup next week and will introduce myself. I feel like I have a pretty good insight on what’s going on in Indy right now.

Hi All, I'd like to introduce myself as a new BP member, investor and licensed Oregon broker living in Portland. I've been listening to the podcasts for about a year and half, and have taken the time to educate myself with many of the suggested books that come up in the podcast. Never before have I taken an instant understanding of a business and the numbers involved like I have with Real Estate investing. I've been an entrepreneur for years, and have a successful event production business specializing in audiovisual technology and logistics. Using my business and entrepreneurial experience, I plan to use my license to broker my own deals, as well as other investors and even retail clients in and around the Portland metro. I also plan to buy long term rentals in Indianapolis - a city I am very familiar with, having lived there for 15 years. Looking forward to being an active contributor to the forums now. Also, for anyone in Portland, I'll be at the Bigger Pockets happy hour tomorrow (Thursday 11/29 4:30P-6:30P) hosted by RareBird Real Estate. Come and say hi. 

@Henri Meli Thank you for sharing. Really great story. I like the idea of commercial RE more and more every day.

@Daniel Brown you would pool your partners money into an LLC and the HML would lend to that- and your partners money would represent the skin. Your partner doesn’t have an option to not deal with a HML if you are bringing one in on the same deal. They will have first position lien on the property.

Assume that hard money could cost you around 12% interest (annualized) + 3 points (3% of the total borrow - call it a lending fee). Also assume they will want you to have 'skin in the game'  - which your 100K partner will easily cover. It's usually 20% of the deal that you need to have available in your coffers. Also assume they will want you to be 'all-in' for less than 70% of the After-Repair-Value. These are the high ends of the spectrum of what I've seen and heard of, so if you run your numbers by starting here, you may find something better and you'll be golden. Shouldn't be hard to find these lenders if you have a good looking deal - which you will present in the form of a prospectus. They could ask you to fill out one in their own format, or you could create one yourself (every detail of the deal and your expected numbers). These folks are pretty experienced, so if they don't like the deal, it's worth listening to them.  I hope this is helpful for you to get started. 

Hi Michael, if you happen to be in town, RareBird is having a happy hour for BP members this Thursday at 4:30PM. That would be a great place to network. If not - feel free to connect and discuss your goals.