All Forum Posts by: Brandon Laughridge

I have two partners that are interested in investing some cash to act as our own hard money fund for rehabs (to resell and hold). We own our investment company equally but their money is going to be a "side car" so to speak and I won't be throwing in.

I realize we could probably just do this on a gentleman's agreement but I'd prefer to learn a bit about the proper structure so that if someone we aren't as cozy with gets interested we could do a similar deal with that individual (potentially).

This isn't going to be a fund per se so don't tear into me on SEC stuff or any of that noise :). But, to that point, would it make sense to keep their contributions separate so there's no way to construe anything as "pooling" or whatever nasty buzzword might come up?

The general terms of the deal are 12% interest only, no points or any other fees. The clock starts as soon as the money is in play. If it just sits in the bank then our company isn't paying for the money.

So for example, say we buy a home for $40k and are putting $15k into the rehab, we close and start paying on that $40k immediately (so $400/month) and then pull out the rehab money to put into our operating business in a few draws or something (we will establish some terms to dictate this internally). No predetermined term to the loans or anything...just pay for money in play.

Essentially, this ends up being a way for our business to have access to some reasonable funds and my partners to have a good place to make money on cash they want somewhat liquid (in and out 3-12 months sort of window).

First off, what do you think of these terms?

Secondly, how would you structure this and do we need an entity for their money? What sort of docs would we need to draw up for each loan (or would we just have some sort of blanket agreement that puts the terms above into proper legalese)?

Sorry for this post getting a little long. I really appreciate any insights anyone could provide!

FYI for anyone checking out this thread: I talked to VRM today (7/11/12) and they said revised terms should be out in early August and they'll have LO's who can give more info/prequalify and they should be ready to lend mid-August.

How long does one have to live in a unit of an OO FHA financed fourplex before it's legal to move out and rent it to someone? I'm interested in buying one but don't really want to live out in the burbs for any longer than I have to.

Thanks all. I called VRM and they confirmed that they are the new lender on this program. As of 5/7 it is suspended for a transition process from BofA to them but should be back soon (although they wouldn't give a date).

Does anyone know who is making VA Vendee loans these days? I spoke with B of A and apparently they're no longer doing them and somehow didn't know who was taking over the program. They mentioned "Imperial Lending" or something like that but they seem to be hard money lenders.

Thanks, Ryan! So in essence the only things holding you back are closing costs and deal volume? Assuming they'll keep refinancing you could scale up infinitely?

Just bumping to the top in case anyone can help. I'm mostly curious if it's feasible to rehab in batches over the course of 6 months or a year and then refi the whole group into a portfolio loan.

Given mortgage lending scrutiny these days, how are investors making rehab and refinance strategies work (at scale)? Is it feasible to buy using cash or a LOC, rehab, and then refinance a "batch" of properties via a blanket loan?

Hello! Long time lurker, first time poster here.

I'm extremely interested in the syndication model for acquiring multifamily properties because my business partner and I are pretty adept at networking and raising capital (raised north of a million $ for our various businesses over the last couple of years).

However, there's lots of garbage out there related to syndication and it's tough to find any good resources. I wanted to ask two things:

1) Would someone be kind enough to give me the basic outline of how a syndication could be structured? I realize that's like asking "Tell me how businesses work" or something equally as general but a few scenarios would be glorious :D.

For example: We find a 30 unit building for $800k, want to do $200k in renovations, and assume it will be worth $1.5mm after words. Assuming all equity is raised from investors, how does a GP generate fees on that, what would our equity split be typically, etc.

2) What reputable resources would you recommend to learn more on syndication? Books, membership sites, people to reach out to, etc. would be amazing.

Thanks a ton!