All Forum Posts by: Account Closed

@Jay Hinrichs

Could you expand on back a developer or builder?  Do you mean be be an equity investor/debt investor?  By developer do you mean tract homes or custom homes in the suburbs or infill in the city? 

Thanks 

@Account Closed

As a ballpark figure it's about $190 per square foot.  If you want high end finishes because the area demands it it will cost more.  Close of escrow to close of escrow should be about 12 months (ballpark).  This is the build cost & does not include the cost of the land.  Unless you've done quite a few flips I would advise not to go this route as it's very risky.

Good luck

@Kristen Daniel

I saw a house that was being renovated.  I went in and started to talk to him and about 6 months later I invested with him.  As for the return you'll get it depends.  I've done both debt (with a different investor not my current partner) and equity.  Debt 13% plus 1 point annualized.  Equity 10% to 30% not annualized but total return.  For example 13% annualized only amounts to $6,500 on $100k investment if the rehabber only uses my money for 6 months.  That same 100k investment would equal 10k if I got 10% return even if the rehabber only used my money for 6 months.  All loans are in first position.  

Hope that helps.  Btw if someone offers you more and uses the word "guarantee" run away.

@Justin R.

So I'm going to give you my advice but first I'll share my experience.  I almost got scammed by a con man a few years ago.  I stood to lose 350k but was able to recover it.  However it cost me 100k in attorney fees.  So believe me I understand where your coming from.  I also got a sick satisfaction that he went to prison.  You will not have that enjoyment unfortunately. 

 That being said I don't think you have a case because you were defrauded by a ghost.  So there's nobody to go after.  Errors & omission insurance specifically excludes fraud.  When you try to sue an insurance company they are well funded & can hire some of the best attorney out there.  

So after all the dust settles & you go through all of the emotions (anger, blame etc) you will come to a crossroads.  Do I continue to invest in real estate or do I give up.  Only you can answer that.  Remember many have failed only to get up wipe themselves off & double their resolve to keep going.  Unfortunately more have thrown in the towel.  If your why is big enough you will find the way.  

I chose to keep going.  Why?  Because I have 2 boys because I live in an expensive city because I want to travel the world & afford a nice house because I'm tired of corporate America and on and on.  I've since made my money back and have an honest business partner.  The funny thing is I made the money back rather quickly.  Almost every real estate investor, business entrepreneur startup has lost money.  Many have made fortunes despite early losses.  As for me I rarely think about the past because its negative energy.  

I hope you keep going & wish you all the best in your endeavors!

@Varinder Kumar

It absolutely is an issue.  Why do you think the property is 80k below market value?  A lot of potential buyers will pass on purchasing a home that someone died in.  It is better that it was natural causes.  Perhaps it would make a better rental. 

Good luck

@Kristen Daniel

if I had a 200k & wanted to jv here's what I would do.  Find a local rehabber that's done at least 50 flips.  Partner with them either via debt or equity.  Get experience & rinse and repeat.  Everyone is going to come out of the woodwork asking for your money so be careful.  This has worked very well for me in Los Angeles & it can work for you in San Diego.  Whatever you don't invest your money outside your local area.  

Good luck

@Drew Nagda

I would pass on this "deal".  Have the seller contact you again once he's able to give you a clean title.  You are assuming: you find the rightful owner (who their own relative that transferred title to the house can't even track down); that owner will transfer over title to you.  What if he/she claims the house is there's & the current occupant is renting from them.  If there's equity in the house what's to stop this mystery owner from claiming it as theirs? Legally they are able to.  You are also taking the word of the occupant at face value.  They have committed fraud in in order to avoid a lien.  Do you not think they would lie to you especially if they can unload an unwanted asset & get some cash in the process?  There are so many deals out there but I stop wasting my time & use that time to find another opportunity.

Good luck 

@Gilbert Dominguez

This is a solicitation and belongs in the marketplace.  I hope the moderators remove your post.  In the future please try to contribute to the conversation not just sell whatever it is your selling.

@Drew Nagda

The house looks beautiful great job.  I thought the house was a teardown from the original pictures.  I love the floors.

@Levi T. mentioned blanket statements are a bit silly.  Do you seriously think I would make decisions and invest my money from opinions from an Internet forum?  Funny stuff.  

As a side note I'm a private money investor and I looked at your profile.  I guess you're looking for investors who have 100k or more to invest with you.  You come across as arrogant and condescending.  You would be someone I would not invest with. 

Good luck