All Forum Posts by: Malcolm Jarrell

I had to repost this, I wrote some things accidentally promotional. Took that out. Let's try again.

I've been doing my homework after listening to podcasts, watching many webinars and trying to connect with people locally. I've hit the roadblock/challenge of being able to meet face to face with investors, unless its local banks, which I haven't spoken with yet, only because I'm not really sure how to approach them and ask for a loan.

The same goes with HML. I have no local investors to buddy with in my area, also a challenge. I'm in Hamilton county. If you can prove me wrong, and point me toward someone in my area, I would forever grateful.

I have some great numbers on properties, using the BP calculators, on a few (of the dozons) that really stand out as being worth time and money.

Using those reports, how do you go about approaching a HML or someone you want to partner with, or a Bank when you want to refinance using BRRRR. I've found what looks like a total gem. I want to get my hands on it using OPM because like a lot of newbies, I have no start-up capital.

I've read that investors and partners want you to do the legwork if you have no $ to out Forth. I do leg work LL DAY, I have no problem doing it. I'd rather do that than try and save up $20K only being able to stash away $100 / mo.

If you want to see the numbers that I've run, you can tell me if you think it's a good deal, and how to go about snagging it (since I'm pretty green, I need some direction and a little push). Let me know and I'll email you what I've come up with.

I look forward to hearing what you all have to say.

Thank you all in advance. Every word is gold to me.

P.s.

As far as meetups and REIAs, the closest ones to me are 95 miles away.

Any advice on how to work with this while holding a pretty strict 8-5 m-f would be awesome!

That's awesome!  I love reading success stories like this.  It gives us little guys hope!!  I can't wait to be able to build. That sounds like an exciting adventure!

I have a situation, any direction or resources on how to handle this would be great.  

I've come across a listed rental property, listed at $540,000 and nets $1,250/month; it could use some upgrades so as tenants move out, upgrade and increase rents. Pretty sure it would sell for less. I've got $0 starting out toward real-estate, so supplying the down payment is a no-go, same with closing costs, and can't get a conventional loan for that amount due to DTI ratio and only have decent credit, not perfect credit. It sounds like the cards are stacked against me, and that's highly discouraging. There must be an avenue I can travel down, some sort of creative financing or partnering that could put me in the position to acquire this.

I wish I had a question about your endeavor, but I'm still learning. So maybe later I can pick your brain about the bigger projects.

@Jim Goebel

So one of the things mentioned on this link

https://www.biggerpockets.com/blog/simple-steps-purchase-rental-properties?utm_source=newsletter

as an option for funding a property is to have a partner.

I'm not aware of all the ins and outs, but altruistically speaking, I like all the ideas especially NMD and using OPM to fund while I pay people back with the profits. They sound simple (put the scenarios in one sentence each, how could it not?)

So where does one start? How do you know which situation suits you best? How do you know which Avenue of financing fits your situation or which one you qualify for? These are the things I'd love to learn. But how do you learn unless you have a situation that needs attention or by asking someone who knows the arena?

So at what point do you ask for someone to front the downpayment? How do you split the partnership?

I didn't really know which category to choose, I'm sure this will all come with experience.

Here's a situation, and I may be putting the Cart WAY before the horse, and/or setting myself up to learn the hard way, or by voices of reason...but here it goes!

I've found what I think is a great investment for a rental property. Using the Rental calculator AND the BRRRR calculator the numbers make sense.

The numbers make sense if I can get the peoperty under contract for 80% of the asking price. Asking $540K... numbers would work at $430K. Here's where I've been told to get creative.

The property is currently at 100% capacity which is great! It needs a little work. (Really...doesn't need much). It's appraised at significantly less, not sure why, waiting to hear back on that.

It grosses $55,000/yr, net ~$1250/mo after all is said and done. I would love to connect with someone willing to front the down payment, and willing to split the monthly profit, I can do the rest of the work. Maint, bills, paperwork, rehab when necessary...etc. I could finally sock up and fulfill my goal of getting of applying these funds to more rental or BRRRR worthy properties and even get out of BAD debt finally!! I could even be on the lending side, which would be great, I could help people like myself!

Now the fun part...

I have no money for down payment or escrow. I have no savings. I have no contacts and no JV partners (yet). I've been struggling to get out of debt, I've found it to be quite difficult with my current level of income and my amount of student loan debt.

I have been reading, studying, calculating, cold calling, mingling online, and trying to find great deals. The more I read here, and the more I watch all the webinars on wholesaling, assigning, flipping, the more motivated I become.

I have decent credit, not great, I have drive, the willingness to learn and adapt, I do not give up easily.

I have a goal of 10 rentals in 5 years. This would actually be the equivalent of 5 rentals after we split the net income. The first property, I've been told, is always the harest.

I haven't developed any relationships or strong bonds yet but am seeking to meet people I can trust, and create amazing win/win/win deals with, have a lasting relationship with, and do more of these deals with. I expect they get bigger and better!! SUPER EXCITING!

I would love to snag this and get a major kick-start to real-estate investing. What is the feasibility of this situation, am I asking too much?

I'd love input, help, direction, or hell...a JV partner!

Thanks all who are reading this and are creative!

Desperate to succeed.

Malcolm

@Marcus Maloney

We use the TREC 20-14 from what I've been told. I've also been advised to let the seller know exactly what we're doing.

By "exactly", I mean full intent, even lined out in the contract that way there is no confusion.

I have 2 contracts underway, both sellers know that I'm the middle man looking for bottom dollar, essentially the sniffer of good deals for investors who don't have time or resources to shop in my location. So, I'm doing the desperate seller a favor, I'm doing myself a favor by collecting a small match-makers fee, and the investors get a good deal, and our town gets one facelift at a time with each house that's improved.

I don't use shady tactics. I always them know what I'm doing, what my intentions are up front, that I'm not going to be purchasing the property, and the end buyers/investors will be at the closing, not me. None of the sellers have had an issue with this, other than the price haggling. But, when you have a house on the market for longer than 100 days, the sellers begin getting antsy to sell. This makes for a more motivated seller.

Granted, I know this isn't the absolute best deal we can provide the sellers, it's one they can stomach, or pass. They always have the option to say no.

I will say, with any money I make off of this, I fully intend to invest in out local market whether to fix and flip, BRRRR, or new build, and then begin giving back to the community.

I have no ill intentions of "duping" anyone. Everything is done under full disclosure so there is no confusion.

My issue is the worry of my investors seeing the property and deciding to not help leaving me in the position to back of the deal and wasting the sellers time, and their opportunity costs. I don't want to be the middle man in a deal gone bad. I'm only in it to help people who can't sell in a local market where there are no local buyers.

@John Thedford

Untasteful use of acronomzing. Or tasteful... however. I wonder if anyone else caught it.

Hey all,

Could I also get a filled out TREC example? I want to make sure I have everything filled out correctly.

Thanks!

Malcolm

Both were very helpful. I recognize that the smaller area has definitely been a challenge already. The larger cities are a little out of my reach so I thought I'd get started here to, you know, build character and relationships. I really appreciate your input.

I've been watching a house go through foreclosure. It's up for auction soon. I'd like to do a wholesale on it, its a great house, 2003, looks to need some repairs.

It's in Erath County. Is there a generic Assignment contract or Double Close contract for Texas, or is there one specifically for Erath County, or is it city specific?

I'd like to jump on this, but I don't want it to bite me in the butt for using ththe wrong form or the wrong approach entirely.

I'd love some advice.

thanks!