All Forum Posts by: Jonathan Killam

 Best bet is usually to find a title company that works with wholesalers as close to the subject property as possible.

Welcome Matthew! I would be happy to connect and answer any questions you have about wholesaling. I have also been know to be a resource to some of my wholesaling buddies that have needed a loan for EMD or even funding for a double close.

Yes, but you have options. If your property is in a trust they should not be able to attach it. Because the trust owns the property, not you. The other thing to note is that if you are not confident enough in the deal that you would put up your own house, then it may: 

A) not be a good deal at all 

or 

B) you might consider partnering with someone that has more experience 

Nobody likes foreclosing on someone's personal residence. Once you have more assets in your portfolio, you will get more favorable rates and terms. Worst case scenario we'd rather foreclose on another asset to be made whole again.  

The DOS is like the boogyman! 🤣 It does not get called all that often and most times when it does you can work around it. Creative finance is definitely a great strategy right now. I think we only run into problems when people are not underwriting and not operating properly. If too many bad sub to investor screw up deals or provide false information to the seller we have see Uncle Sam come down with new regulations. There is a time to create chaos and there is also a time you better know your 💩

No equity / no cashflow deals do have their place for certain investors. Sometimes the depreciation alone is worth taking a loss for a few years. Then down the road as you raise rents and you find yourself cash flowing. Also the property has appreciated and built in equity over that time as well. Do not get me wrong this is not a strategy I would use, but just like the rest of the creative strategies out there it has its place and time when it can be useful. 

Doesn't Grant Cardone still rent? lol

Hey Sylvia, congrats on all the success your team has had. I really hope you are able to find what you are looking for and please let me know if you do! I could also utilize that type of resource. One of the things that we actually help with at JK Creative Systems is gap funding. However, our investors are usually paying (and happy to do so) 30% flat with a 4 - 6 month term. The lending partner usually takes a 10% "fee" at COE and the remaining 20% is paid upon exit. The deal is secured with a JV agreement and memorandum. The reason why this money is always so much more expensive is that this type of deal inherently comes with a lot more risk.

Investment Info:

Condo other investment.

Cash invested: $3,000

STR arbitrage

 Congrats on getting started! I would recommend considering a sponsorship with an experienced investor for your first few flips. A seasoned investor will have the connections and ability to more readily obtain the funding you will need to get the deal done. Most sponsors will take 50% of the deal and expect to have the ability to take full control of the entity holding the asset encase you are not able to perform. However, 50% of something is always better than 100% of nothing.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $271,751
Cash invested: $30,000

Purchased subject to the existing mortgage

What made you interested in investing in this type of deal?

No banks and no credit needed

How did you finance this deal?

Sub to

What was the outcome?

Currently living in it, but will be STR in 1-2 years.

Lessons learned? Challenges?

Small issues with liquidated some other assets to fund the entry fee. The seller died shortly after the sale. Mortgage statements automatically sent to sellers new address when he put in his change of address with the post office.

We are relocating from NH and looking for a 3bdrm around the Charlotte area (approx 30mins out is okay).

We are business owners, but were working W2 jobs up until last month, while running the business as a side hustle. We both resigned to focus on this transition and getting our businesses going here. I am a Realtor, my girlfriend and I own a commercial / residential cleaning company together, and I also own a technology company. Our rental budget is around would be $1700mo, and we are willing to pay 6 months in advance plus security deposit. We know that we look risky on paper, and most of these big box property management companies have a narrow criteria that you must fit into. I am hoping that a solo investor might be willing to look into our background and see our track record for consideration. We are both Army veterans, we do NOT smoke, no criminal backgrounds, and no evictions. We do have a feline family member though. If you know of anyone that might work with us in the area please contact me ASAP. We are currently staying in a STR while we get established.

Thank you in advance!