All Forum Posts by: Swat Khan

Welcome to the BP forums!

Make sure to check out the podcast, search through the blogs and forums. Tons of great content.

Good luck!

Are the lenders that are interested local lenders or regional?

Denise,

If you're going hard money on a turn around project, it will require the owner-operators supervision to keep your GC and management true.

1. Get Local: Why not use a TX lender on the property in TX? Yes, depending on who's lending you may need a local sponsor that lives in Texas. I wouldn't be surprised if you find California lenders in TX however they will need to be already comfortable originating loans in TX.

If you are not in contract, get "in" with your lenders prior to presenting them a deal.

2. In general, when you speak to hard money guys you'll find 9/10 times they want to be near the property and they want to make sure that the owner-operator is capable of paying them back and has estimated the repairs properly.

3. Process to get started:

A) Get property under contract.

B) Find a property management company local to the property who has a CCIM. This will be leveraged to make your team strong. If you can, you would want to be at the property to asset manage during the early stages if it's a turn around since you're using HML.

C) Get your inspections done and deferred maintenance bids.

D) Get lender involved. Send a resume of your team, inspections, and stabilization plan from your trades to your hard money/bridge lender

E) They will send 3rd party inspections

F) Get funded and close with a good title company.

G) Stabilize 12-24 months

H) Refinance with conventional financing and pay back your Bridge/HML.

Note: Don't expect cash back financing unless using a conduit lender. If they do give it to you, they may still make you keep the cash in escrow for 1 year before releasing it.

-SK-

Edit: should say "Buying apartment building using a trust?"

(Sorry hit submit before I could edit the subject.)

Dear BP family:

We just had an LOI accepted on a 44-unit that is about 8 miles from our 188-unit. I am in charge of getting the purchase and sale contract put together.

1. My partner and I were wondering if using a Land Trust would be useful for for added security and anonymity?

2. Can we just use a standard Texas Land Trust like you would use on a single family residence?

Anyone have experience using trusts for anonymity for apartments?

Thanks in advance.

-SK-

Reminds me of the quote:

"What we fear most is what we most need to do".

Fear means:

False

Evidence

Appearing

True

-SK-

Smart move. They say the car is a university on wheels.

Here are some great books that I highly recommend that I've read in the past year in no particular order:

1- The Magic of Thinking Big (the size of your belief = the size of your success)

2- The 4 Hour Week - Tim Ferriss (productivity and leveraging technology and 80/20 rule)

3- Eat that frog - Brian Tracy (productivity, focusing on 80/20 rule)

4- Lean Startup Method (bootstrapping and adaptive learning)

5- How to Win Friends and Influence People (classic on working with people)

Enjoy.

-SK-

The more time you put in the more confidence you will build. Congrats to you for starting young. As my mentor says, this business is simple: get going, stay going, and continuously improve.

Due to the era that we live in, with technology and the internet, you can run 90% of your business from home which means being able to use communication tools like the phone to communicate with sellers and email to exchange documents.

The key is to know the deal and ask a lot of questions and let the seller talk. The more offers and rejections you get the more deals you will close.

Make sure the spotlight is on the seller. This is a relationship business and you want to listen more than talk, you're a doctor finding the problems. Then using this Info to build a diagnosis and then prescribe an offer.

-SK-

Awesome Jeff! Thanks for sharing.