All Forum Posts by: Joe Schaak

@Jason Hirko@Ben Stoodley Thanks for the responses about the joint venture scenarios. Can you explain the advantages of a JV situation as opposed to interest & points? For the investor, it seems the interest & points is a more secure deal because, if the rehabber runs over budget, their returns are still locked. Is the JV deal preferable for the rehabber for the same reasons? I understand that carrying costs and initial margin on the deal would be much higher. Is a JV deal more common? Thanks for your insights.

Okay. Pretty simple calculations, I see. What type of rates are people seeing for private money loans currently?

@Wayne Brooks Thank you. That's exactly what I was wondering. So, if I get my real estate license, that gives me access to the MLS and can save me the commissions, yes?

@Don Harris Thank you. So, if its an 8-month loan at 12%, I would take the percentage rate (12) divided by the term (8) and then multiply by 12 for the annualized return, correct? What if there are points up front? How would that be calculated in to the annualized return?

I'd like to gain access to the MLS and be able to purchase and sell property myself. What are the advantages and/or drawbacks of being a Real Estate Agent vs Real Estate Broker? Is being an agent enough?

I've heard some people who are flipping homes offering 20-25% return on money when looking for private money. How is that calculated? Are they figuring in points offered as well as the percentage rate on the loan? Thanks!

How are things going for you, Angie? I'd love to hear how your results have been and if you found a specific script that worked well for you.

Wow! Thanks to everyone for the really terrific comments. BP and your input is really invaluable. 

To catch everyone up, I decided NOT to pursue the property at the Sheriff's Sale because I didn't want to tie up my capital during the redemption period, @Raj Gandhi.  I love the idea of purchasing "Subject To" and I wish that I had thought of that earlier in the game, @David Moore. 

I also like the idea of purchasing the redemption rights, @Jason M., but I'm not clear on how that works. What are the mechanics of that type of deal?

Over the weekend, I thought of a deal structure where I would pay the owner's asking price. She would loan back $60k at 6% interest-only payments. That would have been a win-win for both parties. She receives her desired price and I get the property at a great net price. Unfortunately, when I called to talk this morning, she said that she thought she had the property sold.

I'll type up my offer and put it in the mail for her in case that one falls through.

Thanks again, everyone, for the great thoughts and help!

Unfortunately, the seller of a property and I were unable to come to an agreement and she has chosen to let her property get foreclosed on Monday. Her home needs a large rehab and she was unwilling to lower her asking price to the number I needed to make the deal work. I even offered her a percentage of my eventual profit on the rehabbed property. 

So, now, as I understand it, the property will go to a Sheriff's Sale. Will this happen immediately on Tuesday? If so, can I go and purchase it there? I know I have to pay cash/certified check. If I'm able to purchase the property, do I receive title that day? I'd like to be able to refinance into a bank loan in order to free up my cash.

Thanks in advance for the help (I have no experience with foreclosures). 

Thanks for all of the great feedback. I agree with each of you. The place needs about $25k in repairs in order to get top rental rates. The ARV would be $175k. Previously, I gave him an all cash offer of $135k, a part cash and part seller financed deal worth $150k, and an all seller financed deal worth $180k. When I presented the offers, I gave him comps and my breakdown. I just checked in with him again yesterday and I thought I would throw it out to the BP community to see if I may be missing anything. I'll put this back in the files and follow up with him in another month or so. Thanks, again!