All Forum Posts by: Jared Cacciapaglia

Good to know.  Eventually, we would like to get to a place where we can use 100% private money as well.  If you don't mind me asking, what kind of terms do you usually offer private lenders?  I have been using the following terms as a benchmark for our potential private investors in order to analyze returns. 

• Minimum $10,000 investment by individual investors.
• 12% annual interest
• 1-2 points up front (1-2% of your initial investment)
• 1-2 points upon sale (1-2% of your initial investment)

Thanks @Curt Davis for your input. I sat with an attorney this morning to discuss the best method for going about this business. He referred me to a commercial lender and suggested I form an LLC to purchase the home. This way we can utilize the cash from investors in the LLC for Downpayment and Rehab Costs. Although commercial loan terms might be more stringent, I think it will allow us more flexibility vs. conventional residential home loans.

Do you have any experience with this? 

Is there a vehicle (Trust for example?) that would allow us to utilize investor's cash as a down payment on a mortgage? 

For some background.  My friend and I are looking to start buying, rehabbing and re-selling properties (flipping) as a business and are just starting out.  Maybe the properties we are looking at are just out of our price range; you tell me!  Between the two of us, we may not be able to foot the entire 20% down payment.  We have several friends who want to make substantial cash investments in this business, however.  

So, to my initial question: Is there a vehicle (Trust for example?) that would allow us to utilize our investors cash as a down payment?  This way we can use our own cash to cover buying costs, renovations and holding costs thus having plenty of skin in the game.  Would love some help.   Thanks!  

Hey James Sestito welcome to BP! I'm also a relative newbie to BP/real estate investing and live right down the street Wrentham! I have to say that my favorite part about the BP forums so far is the specific answers advice and information you get from others like Shaun.

Welcome Beau Blinder! Take it from another newbie, everyone here has been very responsive to posts and give great tips on how to make your BP experience better.

Should be plenty of meat on the bone to offer him a reasonable finder's fee, I think I will bring this option to the table for him. Thanks for the feedback and another nugget of motivation to get this deal done.

Adding to my goals: don't leave BP posts hanging for this long...

Don't need his money, just him as the main contact. I like that idea (relieving him of the up front financial burden) as a part of the story I am continuing to develop in an effort to get him focused. Thanks Scott.

I'd love to hear what other BPers think about this situation and what I can/should do.

My best friend approached me last October with the potential to buy a house from a family friend of his in the greater Boston area. This family friend is a motivated seller simply waiting for her ailing dog to pass away so she can move out of her house and into a trailer park. The dog has since passed away.

She owns the house free and clear and is willing to sell it to my best friend and I for a significant discount assuming we help her move and get rid of the things she can't bring to the trailer park. She's gotten to know the both of us pretty well, but my best friend remains the main point of contact for the deal. Otherwise I would be running with the ball as we speak.

Now, the numbers all make sense for us to purchase at the discounted price, clean the place up with minimal repairs and has an ARV that will yield us a great profit.

Here in lies the problem: my friend is becoming less and less committed to the deal and it's been increasingly difficult for me to motivate him. He hasn't had the best of luck in his personal or financial life over the past 5-10 years, but I figure something like this could be a catalyst to turn that around. Needless to say he's pretty risk averse. On top of that he has never been involved in a real estate transaction and knows little to nothing about real estate investing.

So, my question(s) is: What else can I do to motivate him? Should I remain persistent until I convince him, OR should I walk away and take his reluctance as a sign that this could be detrimental to our relationship?

-Eager for some feedback!

Thanks All for the warm welcome, tips and encouragement!

As for some if those goals @Mike Hurney, short-term I'm looking to obtain my RE license and have a potential flip opportunity that I'm hoping takes shape ASAP (next 6-12 months). Mid-term (1-5 years) I'd like to buy and hold a few more multi-family rentals with the goal of 10 units. Long term (5-10 years) id like to double that order to 20 units on the low end and potentially do a few more flips. All the while building a solid network and core team.

I would love to hear about some your goals. As relative newbie, what kind of goals do you have in real estate investing @Jonathan Schwartz ?

I guess I didn't go back far enough and listen to the earlier shows, Ep. 43 will be the next one I listen to....Crazy Properties with Shaun Reilly! I think that would make a damn good podcast show title.

Thanks for the Boston AREIA location update too, I'll have to get out there soon.