All Forum Posts by: Marc Maitre

Quote from @Darrin Carey:

@Lydia R.
Well said overall. 

On a side note J Norton is my personal sh** list. He took a blog post I wrote, then read it almost verbatim and recorded it as a video and posted it as his own content. 

 Wow, that's how people get their content, unfortunately. But thank you for your response; perspective is everything now I see why it matters.

It's not rocket science; every market has Zillow, redfin, and Trulia. If you don't have access to the MLS, Propstream, or Aquisitoins accelerators, you go on those free sites. Sent your criteria apple to apple, look for sold under a mile, preferably at .5, don't cross major High ways or subdivisions; look at what sold six months to a year. Get 3-4 high comps and average them out, and that's your ARV potentially. I don't spend too much time on it because, at the end of the day, as a wholesaler, the end buyer will run his numbers and find his ARV or the agent will do so. If you spend more than 30 minutes on ARV, you're taking too long. Figuring out your MAO is an entirely different game, though.

Quote from @Darrin Carey:

As a private lender, I'm suddenly getting a lot of requests for three things that concern me.

1. Lending the Downpayment (behind another hard money lender)
2. Lending all the borrowers closing costs
3. Lending funds for putting up earnest money

Personally, I think putting up money for those items as a lender is EXTREMELY HIGH RISK. Out of 500+ loans I've done, only a very few have had problems.
Every one that had a problem had one common feature, the borrower had little to none of their own money in the deal. (Early ones, I didn't know better. The couple recent ones, the borrowers lied about it, and I found out later. Those borrowers made the forever banned list. Not because the deal went bad, but because they lied about the source of funds, and ghosted everyone went the rehab got hard)

Is there someone out there teaching this as a strategy to borrowers and potential lenders? 
Are people really making these loans? AND getting paid back?
Am I missing something here?

Darrin Carey

 This has been why I've been bussing my *** in wholesaling to have anywhere between 30-100k liquid to have skin in the game, got tired of being told that lol. Because I do watch and listen to those IG videos telling you how you can invest with 0 money, it's very enticing for someone without the experience of structuring deals and buying real estate. When I tried to do this by calling multiple lenders, they told me I needed to have skin in the game. 

For the person who says people are broke and trying to get rich quickly, that's pretty broad because being broke is perspective. I want to do my first flip and acquire my first Multi this year; if the deal makes sense and everybody makes their money, and it's a win-win situation, why does having skin in the game matter? I'm ignorant and biased, but don't hard money lenders run numbers to ensure it's a good deal anyways; if the rehab, purchase, closing cost of purchase, and closing cost of the sell;  fit within the numbers and we all win and we all take into account anything that might go wrong, ultimately why does it really matter? 

Should it not be case by case, we make the rules at the end of the day; who says you do have to have skin in the game, I truly find it silly, but again I have no experience, so I could be speaking out of emotion and not truly understand what goes into structuring deals. 

I get that one person out of the whole thing has no risk at all by having 0 money but what if they can use their house as collateral or something of great value, they are also making the least and want their first property to get started. I understand both sides, to be honest. I wouldn't care to fund someone's deals if I made my money and they would get their first rental or their first flip. That being said it has to be an amazing deal. 

The person who says you have to have skin in the game is almost like the type of person that made it to the top by grinding and figuring it out, so now they are not going to help you out and make it easy for you. Not to name-drop, but Social media gurus like Pace Morby make it sound super easy and teach you to go after deals that will have you have 0 to nothing in the agreement. So if there's a bone to pick, it's with him lol from what I can understand, he is the driver behind sub to deals, 0 finance deals, Allegator method, and a whole bunch more. 

By the way @Darrin Carey my goal is to work with you on my first deal when I have skin in the game because I do know it's important to have for many private and hard money lenders. Hopefully I can learn from you as well

You got solid advice from @Scott E. and @Elliott. Since you've flipped properties, use your greatest strength, running numbers and analyzing rehab costs. To make sure it's a good deal. Look at the comps sold for 3-6 months in the same area, apples to apples, and see what needs to be done and add that to your number. If it's a good deal for you as a flipper, take 15-30% off that amount, which will be your MAO Max allowable Offer. Offer that to the seller and see if they accept. Send them a purchase contract, then market the property on places like real estate Facebook groups, craigslist, REA, etc. If you need help, reach out

You need to go and study up, I spent the first month just learning instead of diving straight in. Max Maxwell, FlipwitRick, Wholesaling Inc, Wholesale Hotline, are just a few from the dome that can teach you all of that for a more beginner channel Souad Mehdoun goes over so many strategies. Ultimately if you have to ask that question on a forum means you didn't try at all to do some basic HW. Real estate is all about taking action start taking some towards educating yourself brotha. If you have any questions reach out. Don't mean to sound harsh at all btw 

You're missing a huge part of the basics here. You need a title company or Attorney to close the deal anyways. Even if you did have a buyer, you have to go through the title company to do things like make sure there's no lien or owed amount on the property, title insurance, conduct closing for you, get wire information from the buyer and seller, Unpaid fees for work performed, Undisclosed owners or heirs with claims to the property, Special assessments on the property,Outstanding loans on the home, Etc. I promise if you google some questions, you'll get an answer. You need to Study up too if you didn't know such basic things about real estate. 

Nothing, you're the LLC they could care less as long as you have a legit LLC to just go on documents instead of your name you'll be ok. Just get an Instate LLC and go to

https://www.incfile.com/form/i...

https://www.emporatitle.com/ they are nationwide and based out of Columbus; they are really good. I'm in Cincinnati and I used them for Cincinnati deals.

Quote from @Jeff Copeland:

I see this question a lot. I'd done hundreds of real estate transactions as a buyer, investor, agent, and real estate broker, and I still don't really know what everyone means by "investor-friendly title company".

You want a title company that will:

1. Follow the terms and conditions and timelines of your contract(s),

2. Perform a thorough title search,

3. Issue a title commitment for the required title insurance policies,

4. Hold and disburse escrowed funds as required by the contract and the transaction details,

5. Manage and close the transaction from start to finish, process the deed/title transfer and mortgages, and record the necessary documents. 

But this is what they do for every single transaction, whether you are a first time retail home buyer, or a seasoned investor bringing them an assignment of contract and a purchase and sale agreement. 

There's nothing particularly "investor friendly" about this. You just need a competent and reliable title company. 

If in doubt, go with your local Fidelity National Title or Stewart Title office. Both are respected national brands operating in multiple states. 

I've come across a Title company that won't do wholesale deals so when certain people say title friendly we mean one that is not going to just allow us to double close on it. As a matter of fact, I've come across some who don't even allow that. 

Real estate is all relationship based. There's no website anyone can send to you where you can access hedge funds. The answer to your question is networking; REA groups are nearby. Join them, attend all the meetings, shake hands, and ask questions. If you're looking for title companies and attorneys, google it, bro, and see who's in your area. Call them and be upfront. Tell them you're a beginner looking for a good title company, and ask them what the process is like, or even better yet, visit them in person and build a connection.