All Forum Posts by: Ryan Lee

 I think i see what are you trying to do. Are you using the contractor as partner so that you don't have to front all the money upfront? There's nothing wrong with that, you have less liability and exposure cash wise. On the other hand you have a contractor that may give you a higher price (there's always an increase in price). The good thing is if that's your game plan then go for it.Both parties have an interest in getting the job completed fast and on time. Each deal is unique and giving away 50% of profits is not always a bad idea. Get in get out fast minimum exposure and repeat the process. 

Sometimes people get too caught up with the profits. Analyze all your deals carefully my friend.

Kyle,

When you make the transition I would like to meet with you over coffee.

 Michael congrats on this idea. I think its a good one. Energy industry is an awesome industry to grow into. We have solar panels going up everywhere, or geothermal heating/cooling for homes and now with Tesla coming out with a 35k car that goes 250 miles, the world is your oyster!

I would be interested in talking with you on how you would be able to build an energy efficient house that would be able to construct in under 6 months time and cost either the same or less than a standard build. 

 I am interested if you find a way to get the money down through a lender for 10% or less. The other way I can think off, is to get a private lender and pay them a certain % of the rent, and then refinance out of it, 6 months later. 

 this is what i find working with a hard money lender over the years

- Credit pull is not needed.

--if they are asking for one, ask them if you can provide a copy from 1 of the credit bureaus of there choice or your own. (this way it doesn't mess up your score)

-Never pay a fee for an application, more than likely they are a brokerage house. you will get approved but still have to deal with another company

-you would need to put some skin (money) in the game. usually 25% down. Or if you dont have that 25% use a private lender to fund that 25%. 

I learned this the hard way so you don't have too!

If you need proof of funds just ask some of your previous clients you close or friends to make a letter for you. Proof of funds are never always guaranteed. Just like a mortgage pre qualifier doesn't mean you will get that amount.

I hope this helps. btw we still have to meet up one of these days.

just a lesson learned, give back the money. And i always tell the person who put money down i will continue to show the property until the lease is signed. i explain to them the same scenario that happened to you. 

The only way to truly gage how effective the bandit signs are is to put them in high traffic areas, and also use a separate line like google phone on the signs. Then you know whenever that line rings, its coming from a bandit sign. 

Please get advice from a accountant. Business entity is not a 1 size fits all. I would contact 3-10 people that invest in real estate in your state, ask them some tips or situation of how they structure their deals. Some people may just do buy and hold, while other fix and flip (1031 exchange possibly after), etc. Ask them whats their strategy and business structure. Once you know that ask them if you can have the person contact that do their taxes. Then you vet the tax accountants!

Do your due diligence on vetting people. You may make money on the deals, but if you get tax at a higher rate then it doesn't make sense.

 They might not even be Hard Money Lenders but middle men for them. think like a brokerage firm. Real hard money lenders will request things like business plan, past performance (past deals), credit check, and possibly cash down. I would think twice about paying for a hard money lender, and if you are going too then ask someone that used them before if its worth it.

 Nicholas, if a short sale home is exactly what you are looking for, can you do me a favor and reach out to me once you have one under contract? I help buyers purchase short sales that the bank have declined and sent to auction.