All Forum Posts by: Joe Davis

@Jesse LeBlanc something seemed off, but yes we need to expose these scam "lenders" for sure. Sucks that so many have been ripped off. Borrowers and lenders both!

If Mr. Nguyen put all that time enterprising rather than creating such a scam, he'd probably be doing pretty well and not worried about his cellmate demanding his own "double closing".

1 Vote

Quote from @Becca F.:

It's now 2 weeks later since the last comment. Anyone know what happened? He's out on bond and will there be a trial soon?

Has the FBI responded to anyone? I've been dealing with kind of horrendous real estate situation so haven't filed an FBI report yet. I filed one with the FTC over 4 months ago - no response.

Would also be interested, he nearly got us for a TON of money. This post saved our bacon.

1 Vote

He is getting more sophisticated. Nearly got us! I am SURE he is going to get a few.

0 Votes

Quote from @Sarah Reece:

After a lifetime in residential real estate I'm finally wising up and wanting to diversify a bit and start dipping my toes in the HM/PM space. I've got about $400k to loan and if I can prove my model to myself, I have access to another $1m in cash. I am getting clear on my buy box and hoping to stay local (WA state) with my lending. With all that in mind, I'm assuming that my first step is to create an LLC entity for protection and then have an attorney create a loan package with a note...right? I posted on a local group asking for attorney referrals and got some responses about my plan that made me question if this is infact what I need to do to start as a number of people said escrow will create these docs for me.

What say you oh wise ones with experience? What are my first moves to take action?

Sarah, I am a small local direct lender in the Houston area. When i started out the hardmoney mastermind with Jason Balin and Chris Haddon was extremely useful. A lot of lenders of various sizes on there that can help with some of the logistical questions, software, contracts, recommendations etc.

I also have quite a few good book titles on getting into lending.

4 Votes

Quote from @Alicia Evans:

I have heard there are smaller lending groups where you can purchase a note of the loan for a private investor with fairly good return rates. I live in the Bay Area and I want to get into real estate, but there's just not a lot on the market right now and what is on the market is selling for hundreds of thousands of dollars over asking price. I am looking for connections to vetted private lending groups to learn more about my options as a smaller lender.

P.S. Any advice on how to avoid a scam in private lending is welcome! Thanks BP folks (:

Alicia, not sure if this is still something of interest to you. But we let co-investors invest partially in the notes that we originate in our market (Houston, Dallas, San Antonio). Essentially, you can get in that particular note for as little as 10% of the overall face value. It's a great way to get started in private lending - you don't have to worry about the origination, servicing etc. I am sure others are doing this too, but if there is interest let me know and we can talk.

2 Votes

Quote from @Christian Camacho:

Hello everyone I’m based out of CT and looking to lock in some wholesale deals. Looking for someone with experience willing to mentor me, give me some tips on making calls and closing. I have recently purchased a program which provides me with up to date A-B contracts, assignment contracts and option contracts. I need help learning how to assign them to investors/buyers.

There is a wealth of knowledge online, and on the forums. I think if you broke it down to specifics we could help. As long as you know how to get the property under contract and how to correctly analyze the deal with the correct numbers, the buyer will come.

0 Votes

Hartford, Connecticut

Quote from @Joe Pirapakaran:

Wondering if anyone can provide some insight

So your done rehabbing your deal and ready to refinance

lets just say, you owe your private money lender 140k thats purchase, rehab and interest

the house appraises for 200k. With a 80% cash out refinance your loan amount is 160k

Are you only writing a loan for the money you owe the lender ? (140k) or the full 80% of the ARV (160k)

what are there pros and cons of both ?

I always tell people, before they start thinking about what % they can leverage out the refinance for, ensure that this property will meet the DSCR threshold at the higher leverage amounts. too many people get caught up on whether they can get 70, 75 or 80% but then when the appraisal comes back and market rents show less than they thought - they are out of luck. You will only be able to pull out as much cash as the debt coverage ratio allows.

0 Votes

Cleveland, Ohio

How much will the property be rented for? You want to make sure it hits the DSCR ratio.

When did you acquire the property? You can get no seasoning on a DSCR refinance, but low seasoning is going to affect the rate.

Mostly on the cash-out you will see 70-75% on the leverage.

How much experience and how good is your credit? These will be factors.

But even before knowing how much you can leverage up to, see what the DSCR will permit.

1 Vote

Milwaukee, Wisconsin

As a lender who sees the successful exit on the DSCR, Memphis, Dayton, other parts of Ohio we see a lot of out of state buyers.

2 Votes

Quote from @Bobby Flanigan:

Hello All,

New to Bigger Pockets and looking to connect with real estate professionals in the Omaha area. While I am out of state, my wife grew up in Omaha and we have many family and friends in the city.

My business partner and I are looking to BRRRR (all cash) and are committed to doing as many deals as we can. Would love to connect with Agents, Wholesalers, PMs, Contractors, Lenders, and other Investors - whether to do business together or just share knowledge.

Please let me know if this is you. Thanks!

Welcome to the BP community, it's so much fun connecting with other investors. If you ever need anything looked at on the capital side, both long-term (one of the R's) and/or the Purchase (the B) im here to help.

1 Vote

Omaha, Nebraska

All Forum Posts by: Joe Davis

Joe Davis has started 3 posts and replied 83 times.

Post: FRAUDSTER ALERT... watch out for Justin Nguyen in Florida. BE CAREFUL LENDERS!!

Post: FRAUDSTER ALERT... watch out for Justin Nguyen in Florida. BE CAREFUL LENDERS!!

Post: FRAUDSTER ALERT... watch out for Justin Nguyen in Florida. BE CAREFUL LENDERS!!

Post: Looking to Move into the Hard Money Space - Feeling Stuck

Post: How do I become a private lender?

Post: Need help with wholesale contract assignment

Post: Refinance question for BRRRR

Post: Refi options to pursue for a BRRR deal

Post: Best BRRRR Markets out there?

Post: Looking to BRRRR in Omaha