All Forum Posts by: John Herrick

I Sure would like to have a phone call with anyone who feels they were scammed by CON-nected Investors (“CIX”) and didn’t get proper redress. Maybe working together we could share ideas on what has and hasn’t worked, and what to do— maybe take action together/jointly somehow? 

Just email me with your email and phone # and we’ll talk. My company is GFE Business Consultants/GDEConsultants.com. Find me there. 

  When I get scam and double talk from any product or service I’ve purchased, I become implacable and  a very difficult guy to flick off. For my whole very long career It’s never been worth any opponent’s while to mess with me— I’m one tough S__O__B to tangle with.

  By trade I’m an experienced investor principal, expert creative problem-solving-independent RE and financing consultant —always focusing on planning and execution of real estate wealth building programs for clients in their best interest. I am simultaneously a skilled RE and business financing/loan broker, helping to fund the plans I develop with and for clients. Licensed RE broker in 2 states over many decades with excellent track record and focus on dealing with integrity.

    God is my CEO, (one full step above my wife of 30 yrs.), so I know under whose direction and ethics I do the work for my consulting and borrowing clients.

   I include this perhaps bloviated though factual background on myself to back up my statement of;

--dedication to treating everyone fairly;

—always doing the right thing;

—and expressing love and concern for my fellow man/person.

If you hold these values and have been conned by CIX, please, let’s connect directly. At a minimum I’ll be able to pass on your experience and ideas and be able to help you as well as others benefit from it.

Cordially,

John L. Herrick, MBA                           Business Financing Specialist                          

How about getting UNSECURED credit lines and buying for cash, fixing, then refinancing based on the higher value? 

I offer those, typically $100k+, which will allow you to do several. Just contact me.

You still have to find a portfolio lender to help out. Interim, you should find hard money relatively available to do this.  When you have a small portfolio of these and need maybe $300,000, I can refer you to a source that will finance you on an ongoing basis. You will need a portfolio and a track record to get in with them.

Use this psychology on local banks: They regularly make auto loans in this amount. At some interest rate and points they can make financial sense of it, On the other hand, many/most bankers are just order takers, repeating policy like parrots. Keep looking. The credit union suggestion is good. They can be more open to a repeat borrowing relationship with you. Ostensibly they are member-oriented.

Another thought: Study and apply the art of raising private money from every IRA owner in your world. They are all around you and can be infinitely more flexible than banks. There are a number of private money courses available.

Let me know if I can help.

Borrow what you need to get the deal closed.

Evaluate adding square footage to bring house to same size as neighborhood comparables. Be careful, get good ARV comps for larger houses! smallest house in the neighborhood on land can be an attractive deal. Think outside the box!

If you need additional funds along the way or could just use more working capital, or would like to repay Dad earlier consider this:  I provide large unsecured credit lines which equate to an additional financing partner at way less than partner costs. Please contact me for details.

Once you get a lender's confidence you may get 100% of property cost plus improvements as long as loan to value makes sense (70% of ARV or less). Professional lenders will want you to have 10-20% of cash in the deal to keep you honest.

If you don't want to make monthly payments, offer two interest rates: lower for monthly payments, higher if it accrues and is payable at due date. You could even let it compound to make it more attractive.

Just make sure you present a well documented plan with your request. Lenders will become more flexible as they get to know and trust you.

Personally,I would find a portfolio lender and refi as soon as possible into long term institutional loans.  Smart portfolio lenders exist, but you have to hunt for them.

As additional assistance, you might get any required down payments from unsecured credit lines which I provide nationwide. Let me know if I can help you. Good Hunting!

You've done a good job of covering the basics.I use a lengthy and detailed 8 legal page agreement that I developed for use primarily as a seller when a sub2 was involved.  As a SELLER of an already sub2 property, you should cast the sub2 as a no-equity wraparound note and deed of trust, or get a separate guaranty secured by deed of trust. That way, any breach of the terms of the agreement allow you to immediately foreclose. It also locks in control over the jpayment servicing arangement so both buyer and seller can know that payments, taxes and insurance are being handled correctly. That can allow you to protect a prior seller/note maker in the event of default. 

You should obtain a power of attorney authorizing you to handle alll matters with the underlying lender if/when they discover. That protects you from an uncooperative mortgagor at some time in the future.

Easy, safe solution: Lend through a local mortgage broker with a good reputation.Do lots of due diligence, get references on the broker. Usually you want a first lien which does not exceed 65-70% of the value of the property. Also, make sure your IRA custodian keeps you in compliance with the multiple rules you must follow to avoid being penalized or even exploded by IRS. You should have a properly prepared promissory note and deed of trust or mortgage, depending on your state, fund through an independent escrow, and get title and full hazard insurance. Have the broker's price of having you as a client be the teaching you the process and standing by you through any collection or foreclosure issues. Credit qualification of your borrower is also good in that it weeds out people with bad track record, but it's less critical to the process.

I can help with stated income, low FICO non owner-occ financing. Rates between hard money and Fanie Mae. I also offer unsecured credit lines to acquire and rehab properties. Use for any purpose. Like a financing partner who doesn't control or interfere and just charges you reasonable interest. Let me know if I can help you.

Try to get as much cash as possible down. But you should be able to offer a wraparound note and deed of trust, charging a fairly high interest rate for a low down payment, non credit qualified buyer, say maybe 9%.  Wrap your existing loan for a healthy spread on any remaining equity. Another idea: have the buyer get a personal signature loan, unsecured credit line, or even a credit card for a small amount, just to increase the small amount of cash from another source. ( I distribute those lines in 100k+ amounts). Make sure you meet the Dodd Frank requirements with the required disclosures or determine that you are exempt.  Set up a clear servicing arrangement. Have the buyer's deposit go automatically to a dedicated bank account from which an auto payment on the underlying first is made. Give the buyer access to the account for viewing but not withidrawing. That lets the borrower be assured the payment is being made on the underlying first loan Have the note specify a monthly tax an insurance escrow if not already included in the first mortgage payment.  The high yield on your wrap equity should allow you to sell it to a private investor. maybe with a guarantee.  Wrapping with a good servicing agreement gives you the highest degree of control. Call me if you need help with this documentation. Good Luck!

Our product is not a series of credit cards, though it may include some. We go after a series of smaller revolving lines for our clients and thereby rack up results that are typically 3 to 5 times what a borrower can procure for themselves. The results come from decades of studying the FICO system and how it reacts to tweaks and changes recommended by us. Lots of art as well as science, and a huge service to investors. I calculated a savings of about 38-39% compared to profesisional hard money private financing costs over a five year period. Splitting up the banks also keeps you from being at the mercy of a single bank, and you are less significant and risky a customer since your line is smaller.

Sorry to hear of you being abused by an apparently irresponsible appraiser. 

A perfect alternative: Try our unsecured revolving credit lines $100k minimum to $250k max. Forget about the appraisal! Once you're approved and funded, you simply write a check up to the line limit!

680 min score. If you have 3-4 credit cards with decent limits and no derogs, we can fund you in 5-7 days. Let me know if I can help. John Herrick