All Forum Posts by: Jim Stoffey

Hi Michael, I think I've been through that house you're talking about?  Is it on Cedarcroft Ave?  It had a ton of water damage.  Let me know what you or your GC thought of it! 

I was at the newbie meeting as well, I live in Audubon.  The SJREIA meetings are great. 

I'm about to get my NJ license (passed the test, interviewing brokers now) so maybe I can help you out. Using a 203K is a great idea as long as you don't mind the hurdles to getting the loan. Worth it IMO. It opens up a lot of doors that other investors have to pass up on - specifically the REO's that have the first-look contingencies. I can recommend a loan officer for the 203K's if you want to pick his brain.

Hopefully I'll see you at the next SJREIA meeting!

Congrats on your success, Todd!

I'm hoping you can provide more about the private investors who are now willing to provide 100% financing and will split the profit 50% at the end.

Are these individuals companies or people you know? I'm working to structure a deal like this myself, with a company.

If it is a company, how are they financing it? Are they using a 'mortgage' (hard money), or is it interest free provided you'll split the profit with them? Are there any other interesting terms or conditions?

I made a post about the joint venture I'm referring to here. Good luck finding your next flip!

Great story, better deal!

How much time was remaining on the leases when you took over? If these tenants had been living there for years, were you at all concerned about squatting or destruction of property? Was there any discussion with tenants prior to purchase?

Edit: you just answered my question in the response before mine. Thanks and good luck finding another!

@Troy S. Nothing lined up. Shifted focus to South Jersey and am actually in day 2 of 10 of the licensing class as I type this, for NJ and PA.  I had a hard time finding a good agent, so I decided to get my license to try and work with investors and open up some doors. 

I'm probably going to post a detailed outline about the class as it progresses. It's amazing how they teach you to act as an agent. Apparently it's not that I've been talking to bad agents, it's that my expectations are too high. But, hopefully that will work to my advantage when I'm licensed!

Keep movin forward!

Awesome, congrats guys! Great post as well. Hope to hear more about it at the meetup.

@Troy Sheets @Mark Redmann

@Mark Redmann It makes sense for DLP to want to build relationships, so you'll come back to them for hard money....Honestly, 0% of something instead of -10% works for me! Can we call this flip hacking??

Haha! @James Wise I was just listening to your podcast in my car and I was thinking "ah man, he didn't welcome me! :(" You must have read my mind!

This structure provides a way for us to be involved, be protected, and most importantly, build relationships. You and @Jay Hinrichs hit the nail on the head.  I am way more interested in the education here.

Let me know when you write your book; if you send me a free copy I'll make it my favorite real estate book on the podcast when Brandon and Josh invite me for an episode (in my dreams)

Oh man! I love that show...but that's exactly why we were concerned. We're looking at a property today with our GC we are very interested in.  I don't think that's what these guys are doing, but we'll find out! Keep you all posted

@Dev Horn

Man, this sounds like a big project, but the fact that you're going to rent it out when you're done is awesome.  I'll be following this, @Devin Berrian.  Will you be posting your numbers at all?  Best of luck to you!

Sorry for the delay in response.  I didn't realize this post was getting so much attention from you all.  The advice has been fantastic.

@Jay Hinrichs to clarify, although you did clarify already, but again my only financial risk is the $795 'Commitment Fee' which covers their inspection.  They could turn down 3 deals and yes we'd be out $2400, but we potentially saved ourselves from 3 bad deals that could have drowned us. 

@Mark Gallagher has provided excellent advice as well. To your point, it is all about building relationships. That's why I like the JV structure. I also like the hand holding for my first deal. Before this all fell together, I was looking to do an intern/shadow for a flip for someone else. But I feel confident I'm ready for this.

@Bill Hinshaw keep me posted with your progress.  It does seem like a great way for you get out of that "employee" status in your business so you can scale.  Cashflow quadrant!