All Forum Posts by: Julian Buick

@Dion DePaoli isn't every seller financed loan a "loan being made on a property owned by the lender"?

@Rob Deweese another option is to get a HELOC on your primary residence (you can get 80% LTV) and use it to invest with local rehabbers on fix and flips. You can make up to 20% annualized return doing loans or higher for joint ventures. That's what I've been doing and it's working out so far. That way you don't have to deal with being a landlord. No investment strategy is without its risks and you have to find the right people to work with or you could get screwed. Best of luck.

@Jack B. I recently worked with Anderson Advisors in Tacoma. They are setting up a living trust to move my primary residence to and a land trust to move my rental to. It cost me $2200 to set up the trusts and quitclaim the properties into the trusts. According to them this is the best option for asset protection. They are the experts, you should look into it. 

@Ryan Kemp also talk to @Rich D'Agostino at Builders Capital. They offer land development deals all the time. 

@Spencer Bowen you are correct it is 40%. I calculated it really quickly in my head and got the wrong answer. So, just to be clear, I'm an investor, not a builder/developer. I don't go out looking for deals so I don't spend a lot of time analyzing deals on a daily basis like the other guys that I mentioned do. When they come across good deals they will contact someone like me to help fund it. At that time I will take a look at it and see if it makes sense. If they came to me with the one you mentioned I would turn it down because, like Rich said, it doesn't have enough room for margin for error. BTW they wouldn't offer up something with that slim of a margin. That's why I suggested you talk to those guys. They will help you understand what constitutes a good deal so that when the time comes it will have a good chance of getting funded by someone like me. Or you will be able to wholesale it and make some quick money. 

Good luck,

Julian

Anyone going to this? 

@Spencer Bowen there is a deal that we are looking at doing on Queen Anne that is a new construction on a vacant lot. The total investment is about $1.7M and the Net sale proceeds are $2.5M. It's for a 3 row town home that should take about 14 months. That works out about 30% annualized return. These margins are a lot better. As far as the property on Goat Hill, after reading through your description again it's starting to sound quite familiar. There was a property that I looked at up there recently that ended up not making sense because there was a height restriction. You should look into that. It may not be the same property but definitely something to look into. 

There are a couple of people that you should talk to that will help you analyze your deal. They do this thing on a daily basis. 

@Rich D'Agostino and @Ryland Taniguchi

Good luck

Hi @Spencer Bowen I live a couple of miles away from Goat Hill. When you say this is the first builder/developer deal that you got through marketing, what exactly does that mean? Have you done any deals before? Is your marketing geared towards wholesaling? Is that what you're hoping to do with this or are you hoping to do the whole buildout yourself? Do you have experience in construction? Or do you have a builder that will do it for you? How much would you be putting into the deal? And how much would you be financing? Do you have a HML that would be willing to work with you? As for the deal itself, it looks like you will be in it for about 970k for a profit of 134k in 16 months. That's about 10% annualized return. That's pretty slim. It's a great location though thats pretty immune to market fluctuations so that's a plus.

@Jeff Rabinowitz would the private lender have any additional restrictions on them since they are now lending to an owner occupant as opposed to making a loan strictly for business purposes? I.e. Have to be Dodd-Frank compliant?

@Edward B. @Brandon Hall @Daria B. @Cameron Skinner Whao did I open myself up for that. First off I already have a CPA. I just started investing last year and the only investment that came to completion in 2015 was that one house flip, which was a profit share. I made a grand total of about $4500. In 2016 I will have a lot more investments come to completion and my taxes will be a lot more complicated. My CPA looked at my situation and said, honestly, this year (2015) you would be better of just doing what you've been doing. The amount of money that we can save from the $4500 won't be worth paying for our services. Just report it as ordinary income. I appreciated his honesty. I'm trying to figure out, using turbo tax, how I would report that as ordinary income. 

Thanks