All Forum Posts by: Jason Lavender

I know borrowing from a parent could be a very easy with loose terms or safeguards for either party. How about one step further where both parties need some assurances without all the vetting. Is a term sheet and some signatures enough? A second place on the mortgage? Attorney or google simple contract? Last thing I want is to ruin a friendship. I went into a business partnership with a friend once that was a disaster.

I’m in the middle of my second flip, first rehab done and under contract now. Im always looking for good funding sources so today I got a call at work from a lender I checked into a long time ago about getting a loan, rates were not good enough so story over. Nope. My friend, full disclosure he works for me for my painting business, overheard me discussing with this lender some numbers and later asked me if he could loan me some money on my next project. He knows full well about the two flips I’ve been doing and wants to park his money with me on a deal. I was kind of floored, however it should be a win win for both of us. My hesitations are borrowing from a friend/employee, and how to structure the loan and what documents to use to protect both of us? Anyone have suggestions or experiences to help guide me? Thanks in advance.

@April Thibodeaux I would do both simultaneously. Begin to line up any kind of financing avenue you can, there are as many ways to finance a deal as there are deals, be creative. Continue looking for houses and continue analyzing deals. Pick an area that you would like to do your first project and comb through all listings. Identify the potential winners and run the hard numbers, practice, practice, practice. When you have proof of funds then your ready to pull the trigger when you find the right one. 

I'm asking myself this same question approaching 2018. So basically the idea that doing fewer (3-4 year) higher return deals is better than doing more modest return deals (20+ year) I think is difficult to do and risky. I would rather hit singles and doubles than try to hit home runs everytime. Plus I think in most markets, mine anyway those deals are so few and far between, I dont think however just doing volume for volumes sake is a profitable or long term strategy either. You see this on Amazon where booksellers sell books for a penny just to make money on shipping lol. Scaling imo is about deal flow, finding off market deals is a must, and staggering your flips and even doubling up on them is necessary to do 20+ a year. Interested to hear other thoughts on this topic. 

Squatter FSBO that’s hilarious. That’s a go getter attitude if I ever saw one.

I think this thread could be bigger than the actual tax bill. Great stuff. 

finding off market deals is the way to go. Get on your local REI/wholesale/house flippers Facebook groups and throw your name out there, get on some wholesalers lists,Craigslist and drive for dollars. Also online auctions can be very good if your patient, Ive done this and there is a definite dance to this process.

Very nice!!

No bueno. I can’t think of any upside to this.

Read the forums 24/7. That’s a start