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All Forum Posts by: Lee Ali

Lee Ali has started 4 posts and replied 50 times.

Post: Bad time to make the jump to commercial?

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

Yes, look into HUD 223F. The terms are great and some brokers "may" be able to do 100% financing. :)

Send me a PM if you want a referral.

Post: Adopt A Newbie

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

Just checking Joshua. ;)

Say, are there any plans for Real Estate Investment Meetups?

Post: WolframAlpha.com

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

Wolfram in the name has to do with Wolfram's desire to be recognized. Check this out:

"Wolfram also foresees a day, perhaps in his lifetime, when his name will be enshrined alongside those of Isaac Newton, Charles Darwin, and Albert Einstein."

http://www.businessweek.com/technology/content/may2002/tc20020516_7010.htm

I am trying to read Wolfram's 1,200 page book A New Kind of Science but, with all the stuff on my plate, I don't think that I will go too far with it.

Lee

PS: How do I get the link working at the bottom of my posts?

Post: Adopt A Newbie

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

Isn't one of the purposes of this site is to save people from gurus? LOL!

Post: 22 and broke.

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

Robert,

There is no need to announce anything about your current financial situation to anyone. It is irrelevant. NOT because you don't want to be honest, but because real estate allows you to get around all of the road-blocks IF you know how to find stellar deals, and how to present those deals to people with money.

Believe it or not, once you know how to find and package the deals, money starts coming from woodwork. Banks have straight-jacketed real estate for way too long. I am hoping that alternate financing model take off while banks are hiding for cover.

For smaller deals, all you need is a mortgage and a promissory note to give to your investors. For larger deals you need to master syndication. But in either case, you need a good property and great story.

I am assuming that you have read the Rich Dad, Poor Dad series, have read Think and Grow Rich and watched The Secret.

Lee
[LINK REMOVED]

Post: Need help skipping the bank(using private money)

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

For up to $25,000 go to LendingClub.com. If you don't have good credit, partner with someone who does.

Banks have straight-jacketed real estate for too long. Don't get ripped off by pseudo banks AKA hard money lenders.

Lee

Post: The next step

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

The guru network is currently selling courses on wholesaling, REOs and short sales.

Unless you have deep pockets to buy low and sell low, the only game which is safe today is buy and hold for cashflow.

Post: Is there "private money"?

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

Allen, the key is how you approach the Private Money people.

If you approach them to "borrow" from them, then you will get $500. But if you bring an opportunity to them to be a part of then you may have $50,000 chasing after you.

Again, check out LendingClub.com, etc., to start off with.

Fund deals with HUD 223F which will require only 7.5% from you. $25,000 from LendingClub will get you a $400,000 cash flow property.

Like anything else in life, "approach" is a important as "access."

Best of luck!

Lee

Post: Is there "private money"?

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

I agree with Taz. It is the other way around.

Pooling money is a big no, no.

Quick tips for Allen:

There are primarily 4 sources of Private Money:

1. Money under the mattress.
2. IRA accounts. Good amount of information is at trustetc.com
3. Seller financing.
4. "Cash values" of life insurance.

75% of Private Money will come from friends and family. So start being VERY nice to them, if you have not been already. LOL!

It is easier to get equity partner compared to getting a debt partner.

Equity partner will take a bigger split. Debt partner would be fine with 8%-12% return.

You don't want to have too many investors in one deal. Most states have exemption rules if you are dealing with around 8-10 investors as long as you don't pool money.

If you pool money from even two people, you have to file all kinds of state and or SEC forms.

When you mix investors from two different states, things get complicated.

Since you have good credit, you may borrow up to $25,000 at great rates from LendingClub.com. Which is basically quick Private Money or a "sob-story" :) money source. Prosper.com is bigger but it is in quiet period right now. Loanio.com is getting compliant. Zopa.com is another source which may work for some borrowers.

I wrote a book on Private Money called " Private Money: The #1 Solution to Eliminate Booms and Busts in Real Estate Forever!". The book basically has two purposes, that is:

1. Mr. Real Estate Entrepreneur say hello to Ms. Private Money and get
to know her world, especially her pain points.

2. Ms. Private Money say hello to Mr. Real Estate Entrepreneur and get
to know his world, especially what he has to offer as the best asset
class for your portfolio.

I am estimating that 80%-90% of the buyers would be Real Estate
Entrepreneurs who will either make it available to their Private Money
lenders, or to use the information in the book as talking points when
communicating with their Private Lenders.

Post: Has anyone seen an 80/10/10 recently?

Lee AliPosted
  • Investor
  • Austin, TX
  • Posts 58
  • Votes 8

The only thing promising at this time is HUD 223F. It is basically a 85/7.5/7.5 program with 7.5% seller financing and 7.5% down. But I am investigating how the seller can do 15% with 85% first.