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Hello All....I wanted to know from the members of this community of how do you get around the various pre-screening questions the broker or seller love to ask?

main two questions they love to ask are:

1. how many properties do you own, and in what states and etc (basically they want you to provide them a small list of the properties you own)?

2. can you provide a proof of funds (financial statement)?

now i'm not saying every broker or seller will ask you these questions, but i am saying that 85% of the professional commercial brokers or sellers will. they do this to separate the tire-kickers from the players is what they say.

so for all the people on here that has experienced this when getting started, how were you able to either sidestep these questions or answer them in a creative way that made the broker or seller feel comfortable in going forward and disclosing certain info about the property.

Taz and Charles thanks for the comments.

Taz i wanted to know do you do all of your market and financial due diligence while under your signed LOI, and then once that checks out you then move to the actual drafting/signing of a P&S agreement were then you put up your earnest money?

the reason for this question is that i was told the LOI is really for the purpose of allowing time to draft a detailed P&S agreement, the actual due diligence comes once you get the P&S agreement signed (so you could have a signed LOI and still not get all of your required info until there's a binding P&S contract signed w/ earnest money put up).

Charles i wanted to ask two questions, 1- are you purchasing commercial properties or single family houses? 2- (if commercial properties) exactly what do you say to the owner or his attorney that allows you to not have to put up any earnest money with some of your deals?

one thing i definitely agree with the both of you on is that you don't want to lose your credibility, i have never had any intensions on getting over on the seller, i was just trying to figure out how to get around this hurdle before i even experience it. see i would hate to lose a deal on something as crazy as not having the initial earnest money deposit, especially if it's a great deal and you know you could get bank funding and etc to make it work.

now i used to wholesale/flip SFH, so i do know of a couple of ways of getting around putting up earnest money deposits, but thats done with the individual home owners, and most of the time commercial property transactions are done through savvy attorneys and i didn't know if any of those old SFH tactics would work in this arena

Hello everyone, i was just wondering if anyone has come up with any creative ways of either delaying or not putting down an earnest money deposit when putting a huge commercial property under contract.

the reason for my question is that when putting commercial properties under contract the earnest money deposit can be pretty substantial (normally 1% of purchase price or a little less if you negotiate, but chances are it'll still be a lot)

i heard about a clause Scott Scheel uses that stated something along the lines of "earnest money will be due at closing" or something, but i say to all of you will something like that fly when chances are the contract will be getting reviewed by their attorney.

i plan on having pretty rock solid contingencies in all of my contracts to protect me from having my money go hard before i actually have the funding to close on the property.

Hi Susan, thanks for the link your awesome. Susan i wanted to ask you do you have this same recording but in mp3 or other portable file format.

because i love to download audios like this to my mp3 player and listen to them through out the day.

Hey Jason, thanks for taking time out of your busy schedule to give me some knowledgeable advice about this topic.

all I need now is to know how to keep my attorney fee's down when creating these contracts lol, which I would like for my lawyer to draft so that way i'm well protected at an advantage (my lawyer charges $320 an hour, thats why I'm concerned about this issue).

Thanks for the help guy's, but I found out exactly how to do this.

Thanks for the help guy's, but I found out exactly how to do this.

Hi, i was wondering how do you other investors come up with the funds to pay for your due diligence cost (soft cost), which on commercial real estate deals can be substantial.

the reason why i ask this question is because most banks that will finance your deals will not pay for your due diligence cost or will let you roll it over into your loan (i guess they want you to come out of pocket for these cost).

i know about private funds, but right the money the private lenders lend go straight to the closing table and not in your hand or acct to pay for due diligence cost which are due right away

or is it simply just getting an equity investor to pay for these cost (which the banks won't mine, because its not adding any more debt to the property). or it is getting all due diligence cost rolled into the closing (make them wait for their payment) down payment cost and then using your other funds to pay them off.

i just wanted to know how all this works, because i always hear people saying they bought this and that with no out of pocket money, but i figured if your going through the due diligence process and something doesn't check out correctly and you don't purchase, somebobdy is gonna be outta money, right.

hello all, i just wanted to know if some of you others would share with me how to you spend your days. I would like to know what an investor should be doing every day to become knowledgeable and successful.

so if it's not to much, I'll like to know what are yall daily rountines, like from mourning to the afternoon (or whatever) and how much time do yall give to different task.

I would really love if someone could give me a big overview of how the private lending process works. I'm a beginning investor and i see the power of using private funds but i just don't know the proper and legal way of doing this.

now i know about talking to people you know, other investors, and marketing to other high net worth individuals, which all of this i would consider the first step in the process.

the second step i'm guessing some will say is working out the agreement/financial details with the your private lenders once they say they want to invest (which i plan on doing all this in step one, letting them know they're either going to invest as a lender or has a partner and this is what they'll get in either scenario)

but my questions are:

1. when do i have to worry about the SEC?
2. what paperwork will i have to provide to my private lenders for them loaning me money (well loaning the deal money)
3. do i have to file any paperwork with my state in order to use other peoples funds for my deals?
4. when does private placement memorandums come into play