All Forum Posts by: Brian Alterman

@Jerry Holt Helps a lot and some great tips and advice.  I really appreciate it!  

Thanks @Jerry Holt. I guess my thoughts on if it was owned by an LLC or Land Trust were that if you were a beneficiary to the trust/LLC and passed, and your heirs were now in charge, they still might want to sell and dissolve the trust, etc. But, I do agree it's much more complicated that way and maybe not likely to find/get to the real decision maker that way. Just a thought.

I haven't ton plenty of other deals, but have tried other marketing efforts... like the ever so competitive absentee home owner lists.  That's why I figured Probate would be less competitive (partially due to the difficulty of even getting the prospects).  Want to find better niches to market to that everyone else isn't doing (yes I know lots of people do probate too, but probably not as many as the other categories of motivated sellers).

thanks @Jerry Holt very useful info. I guess I won't be able to use the computers in the courthouse to cross Check property appraiser while in there? If not hopefully pictures are allowed and then I'll go home to finish the research. Or worst case the ole pen and paper. 

Seems easier when looking for a specific person/case, but I want anyone haha. So will just ask for all records filed in the past month (heard this is a good length of time). But also checking under the deceased persons name will only show if they own property in their name. What if it's owned by a trust or LLC?

@Rick H. I'm surprised to hear you steer away from probates being the probate guy. That's why I'm here, to find out what I'm looking for BEFORE I spend time going to the court house. 

I've heard the process of going to the courthouse can be tedious. So was also looking for another solution like buying a list but not sure how accurate that info is and if it's worth it or already to late at that point. 

I don't need distressed necessarily and would prefer pretty homes that I can maybe get subject to or on terms. However as a back up option I can also try to list them with my brokerage if they really aren't that motivated or not in a situation for creative financing. 

@Account Closed What information am I looking for and how do I confirm there is real estate in the probate case?  Don't want to waste my limited time up there and come home with the wrong or incomplete info.

Looking to send some direct mail to probate leads.  I'm in Orlando, FL (Orange County) and believe I have to go to the courthouse to pull records.  When at the courthouse, what information do I ask for (or look for) to confirm there is real estate in the probate and then what contact info am I looking for in order to start my marketing?

Also, if you know of a good source for buying a list of these leads (since my work schedule won't allow me to spend all day and night at the courthouse going through records).  Or reasons you are against a list for this type of lead is also welcomed.  Looking for some direction here, good and bad.

I was looking into "Alltheleads.com" Any opinions/experience with them?

Thanks guys. Those were my thoughts too. I guess I need to ask for clarification on how the 12% interest is calculated. Only presuming it's on an annual basis which for this short amount of time would be way to much risk for me at 1%.  I'd prefer to see a 5-6% return in that short of time to make it worthwhile and less risky.  But, again I'm not a private lender yet and don't have a lot of experience using them either so I'm just trying to learn what the norm is to be able to analyze it best.

Hi all,

I have an opportunity to lend a small loan (small in terms of most deals, but not that small for me... I'm not really a private lender... yet) for a very short time and want to make sure I understand the calculations correctly.
Amount: $10,000

Terms: 30 days max (guaranteed 30 days worth of interest), 30 day extension if needed.

Interest rate 12%

Story: It's just a bridge loan in case the closing gets delayed. Right now it's all on track, but they need to pay back the promissory note for the flip and if closing gets delayed a couple of days, weeks (30-60 days max) they want a backup lender to carry this. I'm not worried about the borrower as I know them well and we are both part of a highly accountable REIA. It would be on a Promissory Note that's notarized and legal. However, it's not really secured.

Question:  12% interest, that's annual?  So, for a 30 day loan, the actual interest would be 1%?  Is that the correct way of thinking about it?  Or should it be 12% for the 30 days?

Thoughts/suggestions/advice?

Thanks in advance!

@Jacobo B. sounds like a good deal to me.  I might say depending on the size of the project,  your percentage could go up a little.  Thanks for the input!

@Jason Cox The twist, is the JV partners use a private lender. So, that lender would have 1st mortgage, right? I could get 2nd, but 2nd isn't very secure. I wouldn't be listed on the mortgage at all. That's why I'm thinking to put money into a deal as a minority investor, doesn't sound like a good idea. Only way to have it be secured is to be in 1st position, but probably never going to happen if you're not the majority lender. But, I've been searching for some examples of JV agreements and the type or wording and terms used in them to get a clearer understanding of how they work and how I'm protected.

I was going to do just a straight loan in the deal with a promissory note stating interest and terms and that I would be repaid upon sale of the property. But, from what I've heard is Promissory notes mean almost nothing in court.  And the only way to have a secured loan is to be listed on the mortgage.  Which for such a small part of the whole investment is probably unlikely.  

I know you're not a lawyer (or I assume not), but do you have any opinion on them from a lending standpoint?  If not going to partner in the profits, but just lending money are these a good option to use or is there another way you do it? Again, I'm not taking it as legal advice, only your opinion or how you do your business. Plus, laws could be different in FL vs other states.

Thanks again guys!

@Jason Cox Thanks for the details.  Sorry for the delayed response, I never saw the email notification.  So, with your 25-50% share in the profits for lending the money to the purchaser/rehabber, are you lending the entire amount, or at least the majority to be in the 1st lien holder position? I know I want the loan secured, but not sure if I go on the mortgage with the purchaser to secure my investment or another way.  However, I'm also not lending the majority of the money.  I would be lending towards half to all of the rehab costs, but not the purchase.