All Forum Posts by: James Gallagher

Thank you all. Yes I have been contemplating this and feel it does come down to equity and balanced consideration also of the sweat equity (ideally, however not always). After all who is the one generating the deal and 'productivity' in the first place. 

That said, because of the nature of money the cure should be balance, somewhere around 50/50. Which in most cases according to my current experience and deals to which I am referring, i.e. rental returns would be for instance 1/2 the CAP, or 1/2 of ~16%. So 8% would be this split on 100% to ARV and some points or perks could be added to be competitive. Thoughts?

I would be curious to know more about what other more higher yielding and less involved deals look like.

Yes thanks Bill that clarifies greatly and is informative information helping me to expand my understanding. I like what you are doing and would like to run this fix and flip strategy myself as well sometime soon in the future. Currently I seek to just expand my buy, rehab and hold- rental business here in N. Texoma and pref jv could also be an option. Not sure which is best however as we already own the properties. And, I do feel we would actually hold longer (>3 yrs) than what it seems you are doing. 

 Hi Bill,

You said new investors can be paid up to 20%? Is this on a note secured by a first mtg? Regarding types of projects, I would like to know more, can you give examples?  What I mean to do is simply to follow our already successful strategy of accumulating additional discount or wholesale property for high yield residential rental income to hold at least through the term of the x% note.  There might also be an option to offer a premium to the note buyer at the end of the term where subject property is then sold at premium or else continue to recieve the yield x. 

Any suggestions on simplest logistics. The reason this is needed in this market is most of these notes would be under $50k.   

Hi John thanks for your reply.  Are you saying you would be lendor for 6% in this case? What would be other necessary details? Would you need properties to be local? As for us we have been owner operating now for over a decade and have maintained an excellent credit rating.  We ran into that 4 mtg maximum thing and this caused me to stumble as well as my 'solopreneur' introverted phase I am now out of. Wish I had expanded sooner as this only means greater cashflow and faster wealth creation, however ... hindsight 20/20.  The point is to act now. The rental market here has never been stronger, job growth is good, and there are several high yielding, discounted and wholesale rental opportunities hitting the market. It's been good to me and so to stay in the game is to step up the game. 

Creating, giving notes and mortgages is new to me. What are other logistics. As you know I could go to banks however with loans of this size the closing costs have not usually made sense and the onerous process is also a turnoff.           

Hi All,

I just got some great advice by a fellow Bigger Pockets and RE leader. Why divest out of good cashflow property- owned outright when I can create a win-win with another investor? I got it!  

So now it is just a matter of learning a little more again and hence my question. Who knows where I can find hands free investors who would like 6+% returns on their money secured by 1st mtgs with 100% capital returned in 3 or 5 years?  

We are talking about ~$40k loan/mtg on one 3/1 SFH and I also have another property offering a duplex coming in at $59K. Loans to be used for reinvestment into business. I look forward to your suggestions. Thanks

Hi Rumen,

I can sympathize where I also tried to help a tenant, moved him into a nicer place where he proceeded to break over 50 windows smash the front door, turn the place into a psycho scene movie look alike. I let it go for this one and gave it over to divine justice. I just wanted this psycho out of my life. Also the fact the 'penal' system is complete and utter joke when it comes to these things. You may however proceed via this: https://www.rentrecoveryservice.com/contingency-ba...

You may have better luck than me with them and if you do i would like to hear about thanks.