All Forum Posts by: Jim Sestito

Thank you @Rick Pozos

Are you aware of any services that will allow direct payment / tracking of the loans life?

Hello BP,

I am looking to simplify to the process of private money.  How exactly to the transaction goes down, and how the lender gets paid back.

For the post I am focusing on investing with friends / family money.  Shouldn't matter but doing so in Massachusetts.

To the best of my knowledge this is how a transaction goes down; 

1. Borrower finds deal - requires capital

2. Finds Private Lender - offers investment opportunity. 

3. Negotiates amount + Interest rate + Terms 

4. Lender send funds ( gym bag of cash, check, venmo??)

5.  Borrower pays back (What sites let you set up a loan payback between two people?)

Any clarification / simplification would be greatly appreciated.  

Thanks guys,

Jim

@Jesse Andrews Were you able to move this property?  Feel free to message me any other deals you have in the area.  Thank you.

@Chris Prefontaine    Not sure if we have runners on the forums but I have to ask.  Are you related to the late great Steve Prefontaine??

@Ryan Hurd Sometimes the most simple advise is the best.  I didn't see anyone mention this yet but buying a 4 or 3 to start is very advantages if you are house hacking and want to house hack property #2 as well. 

-For this main reason.  Lenders are strict when buying a second multi family to owner occupy.  You need to have good reasons to do this. 

- It is much easier to go from 4 fam to 2 fam than it is the other way around for this reason.  

Damn underwriters just give us our loans!  Good luck everyone!!

@Julie Bradley

Track the expenses of your current multi family to a T.

when you look at your next property assuming its in similar local, condition, size - you can assume your expenses will be similar (not exact science here but a start)

Hello @Stephen O.  - One of the biggest takes I have received from BP is 'playing to your strengths.' - being involved with the property management company gives you a wealth of knowledge that many new investors do not start with.  

Add value where you can be answering others questions on the forums where fit and it will eventually come back full circle.  

@John Bernabel I agree with the popular 'go back to work' answer. 

To keep your personal moral up try thinking of the following;

Every company was once a start up.  Pick the brains of upper management - ask questions that pertain to building a business.  How did they find good help?  How did they survive recessions?  Growth, scaling, ect.  Everyone likes to talk about themselves - just a bonus you can get in tight with new boss while getting a lesson on building a business.

Good luck.

@Ray Hurteau  Thank you for the response.  I bought my first owner oc 2 fam with a conventional loan.  

Would love to buy this one FHA if it will clear / I Can get a bank / underwriter to play along!

@Omar Ruiz That location is great.  Do you know any contractors in the area?  If yes - get them to the property get a rough estimate on rehab costs.  

If no - then get your butt to home depot / other places where contractors hang out and make some friends!

The what to offer question is simply what you can realistically (run your #s safe here) sell it for. that number MINUS rehab costs, holding costs, closing costs, desired profit = offer price.  

Good luck - search around the forums for more flipping centered topics - you in the right place.