All Forum Posts by: Frank Hinck

@Kambon Kali

Don’t have a form contract for you to use, but it should be a simple 2-3pg doc stating their insurance requirements, payment schedule of how they bill you, your payment terms net 30 by check, collecting lien waivers. Always have them sign your contract, don’t sign their proposal - they throw favorable terms for themselves onto their proposals.

@Peggy Liu

Also if you’re looking to get into a 1031 you can go this way because the hold will be at least 1 year. Also this could be a good way to get in with a developer - you can prebuy the homes before they’re built at a discount rate (to get the developer cash flow) and then sell once it’s done.

Just don’t overpay on the Model since it will likely be fully upgraded, try to negotiate paying half the costs of the upgrades.

@Isaiah Pearson

Sell it Subject To, or Owner Finance it, or depending on your state rules Contract for Deed / rent to own

@Greg Dickerson

Greg if I ever get to developing you’ll be my first call.

Didn’t know about the DavisBacon requirement, good point.

@Henry Valle

In most circumstances, your home state is going to be your most-effective option.

If you were to form your business in another state, you will still likely meet the criteria for doing business in your home state. So, even if you were to form your business in Delaware, Nevada, or Wyoming, you would have to file paperwork in your home state, eliminating any tax or cost savings.

@Michael Sabosky

Agree with @Greg Dickerson there’s many different classes / types of commercial. If you have a business you could “Hack” an industrial or flex building through an SBA loan but you must occupy 51% of the square footage, there’s still good opportunity to rent or lease out the rest. Check out Loopnet and search by $/SF for some industrial flex in your area.

@Gloria C.

Agree with Jon. If the borrower can show the bank that they have the property as collateral to build on then they can use it for equity towards their 25% down for the construction loan. 7% interest only on a 5 year balloon would work.

@Joshua Howaniec

In residential I do think it’s possible, commercial no. You can do your research, pull properties & comps off your work hours. Or flooring store could be 4x10’s, or go full commission not hourly. Not going to be easy the first year for sure. Start with selling to your friends and referrals, make a list of the 200 people you can contact and call 10x day for 20 days, then cycle back through with texts, then FB messages or calls again. Getting the word out as a new agent, asking for their trust in you personally to gain their trust in you professionally. Keller Williams is a really good Training brokerage.

@Prithvi Sri

Rate seems right for the economy and the business type What city state is that lender in?

@Joshua Howaniec

Get that RE license evenings and build up some business before leaving flooring sales