All Forum Posts by: Jim Peret

Hey @Diya Wahi, not everyone wants to conduct a 1031 exchange so my tax advisor has suggested a "lazy 1031" to me in the past. This is where they sell a property and purchase another property within the same year. Then, conduct a cost segregation study on the new property within the same year and accelerate depreciation to cover the gain from the 1st property that was sold earlier the same year.

Their tax pro can help them work out the details of all that but that's the gist.

Hope it helps!

LOL... there is probably what 10k private money loans made daily in the US..

But  I will play along.

PML if its true PML not HML calling themselves PML is very much relationship based.

So I just took on a  new client in the mid west... And here is what I have closed for him in the first 120 days.

1. fix and flip he put up 10k I always require the first two deals to have 10k into them then i fund 100% of everything after that. so all in he is about 100k including the 10k profit I will make I just saw the HUD this morning and he will get his 10k back and make 32k Net profit..

2. Self storage  did a deal for him were I gap funded it buyer needed to close in 3 days there is 400k in equity I  put up 75k to close the deal and we get 100k back when it sold no matter what its sold for plus cash flow.. I will split that with him 50 /50.. So I will make 50k on my 75k he will make 50k putting up ZERO.  Keep in mind though deal came to me on Wednesday Thursday and had to close on a Monday one of the reason I could do it that quick of course title was all done so I just reviewed title policy( dont need a lawyer to do my deals with my experience) etc.. And I Always go meet my borrowers before I start with them and He had showed it to me when I was there.. I was not interested at 1.2 mil but became motivated buyer when I could buy it for 800 and get 100k of upside I said sure why not..

3.   3 houses  125k closing i put up all the money  he had two of them sold for 100k and that closed 5 days after we bought it so basis on the last house is about 25k .. and its on the market for 89k.  I will make about 10 to 12k on this one he will make about 60k without putting up a dime.

4. fix and flip  he put up 10k but we had to remove the tenant so its under rehab now.. same spread as the first one  he will get his 10k back and make about 30k I will make 10 to 12k for loaning in 100k for 6 months..

5. cosmetic flip  cant recall the numbers but this one i funded 100% and its about done I will make my 10k and he thinks he will make 15 to 17k on a 30 day rehab prime area of his little berg.

I also pay all the insurance he has to pay UTLS though and he has to put up EM which you know the mid west its a joke 200.00 bucks or 500.00 bucks..

So bottom line he meets  me a PML on BP I like him I do a background make sure he is a good citizen he checks out.. I fly back to take a tour of his market meet his wife as well on my dime.. And in the first 4 to 6 months he will net over 100k on a 20k investment And I make my normal funding fee's which are higher than HML fees  but I dont do appraisals and i have zero junk fees.. So he just pays me my fee and all those other fee's every other lender charges are not added on which many borrowers dont realize how much that is until they get to the settlement table.

U would be surprised though how many people just dont think this is real.. But it is.. Although I will tell you I really have to like and trust who I do this with.. its not lending by appraisal and fico score.