All Forum Posts by: Larry Miller

@Tie Lasater 

Sorry, I didn't get you connected on that last post. 

@Tie Lasater, thanks for the contact. I'm trying to get a hold of him now. I'm hoping we can find a good wholesaler in the phoenix area so we don't have to pay the overpriced values in that area. We'll probably end up renting for a while so we can find a deal. 

I just started investing with a flipper in Texas but a change in jobs is moving me to the Phoenix valley. I am hoping to make some connections in the Phoenix, Tempe, Mesa, Gilbert, Chandler areas so I can learn a little about the market there. 

We are looking for a home more on the east side of the valley right now and will be there on July 11th or 12th to house hunt, so if any wholesalers have a house in a good school district that will fit a family of 8 I'd be interested in talking with you. 

Thank you for all your answers. This first one is relatively low funds (25k) and ARV is around 180K. I did request to be put on as a 2nd (it's a subject to), but as I grow and put more in I will definitely make sure I am protected.

I've learned a ton from other's posts, but now I have a need of my own. For background, I was/am looking into buy and hold properties in San Antonio, but in my search I found that a friend, who owns his own construction company, has started flipping houses. He has done several flips already and his business is really starting to take off, so while discussing all things real estate with him I mentioned that I have some reserves and would like to get into RE investing in any form just so I can get my feet wet. Well, three days ago I got a text from him asking if I am ready to invest in a property that he is flipping. I immediately moved on this [after discussions with the wife ;) ] and we are on our way to at least getting a foot in real estate. 

Now, I know every deal is/can be different, but my question is this: What are the typical steps I should take as a lender to make sure I am protected?

I signed an agreement with him setting out the terms of the agreement (i.e. the amount I would lend, the % return, the time frame, contingencies for exceeding the time, etc.), however, I am dealing directly with him and his LLC and not really with the property (i.e. title company) at all, so I feel like I am just making a loan between friends with no protection on my end.

Now, I am good friends with this individual and I know that he is trustworthy, and in addition, he has funds (and his reputation) in the game, so I am not worried about getting screwed over on this deal, otherwise I wouldn't have done it. 

If this works out, I want to continue in this role to help build my knowledge of RE investing, but I also want to set a precedent from the start that will protect me and my investments, so any advice for me as I start down this road would be very much appreciated. 

Thanks for the quick responses, that is how I was hoping it would work. I will confirm with my bank and get it set up now so I have access to it if I need it. 

I am looking at using a Home Equity Line Of Credit (HELOC) to buy a house in San Antonio but I am new and don't know how the timing will work. I know you can get pre-approved for a typical mortgage and use that pre-approval with your offer, but is there any way of showing funds available using a HELOC without actually borrowing the money. I don't want to borrow the money and have to make payments if the offer I make falls through. On the other hand, the bank I talked to said it will take 30 to 45 days for the HELOC to be processed.

I guess my question is: How do you work the timing when using a HELOC to buy a cash house?

@Alex Kamunyo I'm going to second Jonatan Barbera. I've been looking for property here also (only I'm including areas outside the 1604) and everything that has come up on MLS has been over priced or is already under contract. In this market you need to find something off market, or get in touch with others who are finding deals through other means. @Rick Pozos is a local investor that has some meet-ups planned, I would suggest going to the meet-up and getting in touch with other knowledgeable investors in the area.