All Forum Posts by: Jonathan Marcus

I paid my investor 10%, 1 year term, second position. 

Find out what the usury laws is in your state to make sure you won't be breaking it, if you will be asking for a lot higher interest. Also, something to think about if you plan on doing this as a business is what other hard money/private money lenders are getting. Visit your local REIA to get a better idea.

First find out if she is open to doing owner financing. If she is, ask all the pertinent questions such as when she would want to be cashed out? Her down-payment requirement? Balloon payments, if any? length of amortization?  

Discuss it with your Broker if you really desire to have it in a business entity. Also, it won't hurt to discuss it with your accountant especially when it comes time to sell. Best of luck.   

Find listed properties (check loopnet) and you can determine it that way. Listing Brokers would usually give the properties NOI and of course the asking price; this will give you at least a good idea of the Cap rate sellers in the area are seeking for.

Without talking to the owner you don't know if its a property that can be wholesaled. Just speak to the owner first and find out what is the problem. In this business, you get paid to solve real estate problems. As the saying goes, if all you have is a hammer, everything looks like a nail. 

Speak to the owner introduce yourself and ask about the abandoned property and go from there. Once you know the problem and if you don't have a solution right away, tell them you'll get back to them after you speak with your advisers (BP Family) hopefully with solutions that is a win-win.    

The check will be made out to the parties on the deed. However, if you stop paying on the mortgage only you will be on the hook. Now if the partnership is you get the mortgage, your partner puts the down-payment then at least both of you have skin in the game. 

You can always buy a property under a business name, but it will be a commercial mortgage and a 20% or more in down-payment. I have clients in NYC who buys investment properties and they all create an LLC to put the property in but again they put down sizable down-payments.

Real wholesalers don't start out as wholesalers. They start out as rehabbers who either gets a lot of deals and must let go of some deals or who got tired of rehabbing and just decide to wholesale the deal. 

Look for active rehabbers and propose to them that if they have deals they can't tackle (either too busy, short on funds, etc) that you would be willing to buy it from them and they make a quick buck.   

If you have a personal mortgage on the property, your mortgage company will not agree for you to deed the property into a business entity and would trigger the due-on-sale clause on the mortgage. You have a buy it under the business entity's name from the get-go but then it will have to be a commercial mortgage. 

If you have a partner, it is simpler to just add the partner's name onto the deed which secures his equity stake on the asset.   

It is always advice-able to line up your financing even before you get an offer accepted. Speak to a number of HML so you know their lending criteria and that you qualify. Once you know the money is there, it gives you more confidence when you make offers.

Of course. If the property is listed you can make the offer directly to the listing agent. But understand, the listing agent works for the seller so he or she may discourage you from making low offers. You can remind the the listing agent, by law, all offers must be presented. And if your offer gets accepted the listing agent gets to keep the entire commission. Or just find another buyer's agent to represent you.