All Forum Posts by: Julian Buick

@Brian Eastman how about if there are no monthly payments and it just has one balloon payment at the end of the term? Would you consider the accrued interest to date? Even though none has been paid. Thanks

@Justin Gottuso If a so called private lender has offered you 100% financing at 5% interest with no appraisals and you have very little experience, it is most likely a scam. Unless, of course, you know this person and have a solid relationship with them. Don’t go looking for private lenders on the internet, there are too many people looking to separate you from your money. 

@Nick Belsky the way @Account Closed describes it is correct. The private lender would lend the money for the acquisition which would be a first position loan. You use your own money for the rehab. Then when it's rented you refinance through a conventional lender. The conventional lender would pay off the private lender, so at that point there is nothing owed to the private lender. If you are doing a cash out refi, which I assume you would be in order for the BRRR to work, you would get the remainder of the 80% LTV as cash. You don't get the 80% LTV cash in your hand and decide what to do with it. If you end up not getting back the full amount of your rehab amount then you will have to save up some more money before you do the final R, repeat. You do that either by saving the cash flow or from your day job, if you have one.

@Steve Morris are you assuming the risk is high based on the reward? Or are you familiar with Norada’s offerings?

@Kate B. why Pooler? It’s mostly new construction. 

@Bernie Granier there is a weekly podcast out there called the private lender podcast by Keith Baker. I’ve been listening to it from the beginning. The podcast provides a lot of really useful actionable steps for private lenders. Keith Baker is from Houston so you may be able to contact him through his website and see if he would be willing to let you buy him lunch. 

@Tim Emery no I couldn’t make it. Had a family emergency. How was it?

@Tim Emery there is a Savannah REIA meeting tonight at the club at Savannah harbor. There should be lots of investors there. http://meetu.ps/e/H74tf/tz0Q1/...

@Jeff S. I was also lead to believe that you couldn't partner with yourself to make a loan but I'm hearing conflicting information on the Private Lender Podcast Episode 76 with Nate Hare from Quest IRA. At about minute 26:30 Keith Baker asks him if your IRA is allowed to partner with yourself to make a loan and Nate says that it is absolutely allowed. You just can't lend your IRA funds to yourself. As long as the person you are lending to is not a prohibited person.

@Adam L. what percentage of your investable capital would this represent? If it is more than 10% then it is probably not worth the risk. If something goes wrong you wouldn't have the knowledge or experience to know how to fix it. If it is less that 10% of your investable capital and you would not be destroyed if you lost your entire investment then it might make sense. I have done deals like this before that have worked out well but I was willing to risk losing the capital because it was a smaller percentage of my total capital. In this case the builder looks like he has a solid track record so the chances of him not performing are probably slim but you always have to protect yourself Incase unforeseen circumstances happen. In a 100k SFR flip if something goes wrong and you have the means you can take over the project and figure out how to finish it yourself to get your money back. It's not hard to figure that out. New construction is a whole lot different and takes a whole lot more money based on the houses you have listed. Also I would be looking at more like 20% annualized interest.