All Forum Posts by: Paul H.

Good topic. One goal I'm working on this week is writing up an investment proposal for friends/family that would be interested in private lending. I've dealt with hard money for a few years now and think it's time to go for private money! 

As for the legal, rules, guidelines side of things, I believe the only thing you need to do is have a solid formal agreement in place that would be used to loan money and/or record a mortgage/lien on a specific piece of property. I'd say make sure the agreements outline EVERYTHING. The standard items like loan amount, interest, timing, the property, late fees/penalties, etc. But also stuff like insurance coverage and what happens if the house burns down half way through renovation!  

And yes, it would just be considered interest income, placed on the 1040. Also, say you're doing a 6month loan in August, you could have in the agreement that interest is paid upon principal payoff. So interest and principal ends up being fully paid to you in January and you could defer that interest income until the following year. 

I took the jump in April 2019. I was at a job I did not enjoy at all, dealing with stress there and tons of management B.S... I considered quitting the job and finding a different full-time W2 job, but decided maybe it was a good opportunity to jump into real estate investing full time and see what happens. It was definitely a risky move and 2019 definitely had its share of stressful moments! But overall, I'm glad I did it and looking forward to developing more as an entrepreneur in 2020. 

Hey Joe, welcome to BP!
I'm an Agent and Investor in the area, I mostly focus north of Pittsburgh (Beaver County). Feel free to message me on questions, references, etc. 

I had a few purchases, renovations, rentals, prior to asking a HM lender for $ for my first flip, which added experience and made the process with the lender easier. 

First flip was combination of HM - $60K, some personal cash ~ $15K, and 0% credit card offers for most materials ~ $15K. 

Nice job James!  What kind of advertising brought you this deal?

I have yet to find a flip just needing the basics... perhaps 2020 will be my year for a successful lipstick renovation ;) 

A GIANT (3x6 or 4x8) dry erase board is what really gets me motivated. Placed in a finished basement, or office space area where it can be easily seen daily.

It's great to have some extra room to brainstorm ideas that can later be put into the long term goals/ideas side.

I'm not against formats electronically, just personally I love to see the BIG picture all planned out on a board instead of a 2 inch phone screen or 22inch computer screen.

My guess:

1. Risk level associated with investment.
2. Past track record of investment
3. Diversity of investments
4. Tax implications of investment
5. Social responsibility of the investment
6. Reputation of companies where investments are made.

Rich Weese has a great and very popular post on this site called "From janitor to multi-millionaire". I've had a good time reading his story, but I'm even more excited (and patiently waiting), for your article in the future, "From owning a Lambo to living in my parents basement".

I only wish I was the loan officer who was reviewing your requests. That could cheer up any bad day.
Good luck on your endeavors.

BAC does look interesting at this price, but your comment "just not anytime soon" is spot on. That's the reason I would stay away from it.

S&P also just downgraded them from an A to A- credit rating with a negative outlook, I think about an hour ago.

I've seen topics here about investing in other areas besides real estate, so I know BP has some members involved with the stock market.

I'm also familiar with the excel templates that members have posted in "FilePlace" which I have found to be Fantastic! tools to work with.

So my question is if any of you real estate investors are also Gung Ho about the stock market and have made excel templates that you would be willing to share.

Thanks in advance!