All Forum Posts by: Mark Limke

I feel that starting with private lending is overly optimistic. Private lenders are your family and friends who know you and believe in you and are willing to risk their treasure to help you.

Private lenders should not be placed in jeopardy, because they are trusting you. But you have no experience, so to me, no reason to assume you aren't going to lose money. If you can make your investors whole, regardless of whether your deal goes bad or not, then use them if they'll trust you.

I don't know you as people, but in general, I think new investors, having no experience, would have trouble finding private lenders. A novice lender is by definition risky, and people with money are generally too smart about money to take that risk.

So, you need to partner with someone who has money, and get some experience in lieu of great pay. Or use seller financing. Or hard money lenders. Any of the options outlined in Brandon Turner's book on how to invest with low/no money. Find a deal where you can make it work, it's out there!

Good luck, @Bensley Faustin!

Reading the responses, I will echo what @Pam Storm said: have your criteria, and stick to it. Make sure your criteria is nondiscriminatory, and apply it every time, and don't bend it, if you want to avoid lawsuits and fines.

Someone mentioned avoiding military. I am not sure how you would have a nondiscriminatory policy that would make that possible.

Someone else said they always give the military the benefit of the doubt. I'm an Army veteran, nine years active duty, long time ago. Maybe my experience doesn't apply now, but I suspect it does: don't put military people on a pedestal. Treat them like you'd treat anyone, and be ready for surprises they can't control, like deployments that are inconvenient for you, but unavoidable.

Some military folks are heroes, some are scumbags and deadbeats, just like in any large group of people. Check them out with fair criteria you apply to anyone, and you will be doing the best you can.

I don't know a thing about PA, so this is general thoughts only.

First, disclaimer: get advice from an attorney before investing in property you suspect may have liens or legal issues. BP is not your attorney!

Practically speaking, you should at least call the various government offices that may have information about liens. In my area, I would probably start with the county, which is the taxing body and which maintains property records.

Here's a link you may find some value in. Read the third question's answer carefully. It has instructions for you! True, you're not talking sheriff sale, but the lien info is potentially valuable, so start there, I say.

Good luck! And notice the very last sentence above: that means hire an attorney and spend a few hundred bucks.

I haven't used it, but will consider it when I'm ready. It comes from Danny Johnson, who was interviewed on the BP podcast some time ago. He's one of the sharper guys I've observed, and seems to have a really good handle on most aspects of this business. And hard to find a nicer, more considerate guy. I recommend Lead Propeller just based on its source.

And check out his website, FlippingJunkie.com, too.

I'll leave the fees to someone else to address.

Any loan payment delinquencies and late fees, etc., will be reflected in the seller's payoff letter from the lender on the property. This is purely the seller's responsibility, in a technical sense.

But -- you are here to solve the seller's problem. If that means handling their late/missed payments, then that's a way to sell your value to them. 

Of course, you need to price your offer so that it makes sense for YOU. You pay their late payments by dropping your offer enough to cover them. Or something similar. Do you get the idea? It's your bottom line that matters, not how you structure it or what you call the numbers inside. Be helpful, and talk their language (i.e., late payments and how they go away).

Having an agent, that is, the house being listed, does not complicate it. It just means there will be a commission to pay. Don't let that stop you, but calculate the commission as one of the costs to acquire.

What are your plans for the house? You should analyze it fully, determine your own ARV, estimate repair values, and figure out the value of the deal based on your own analysis, or that of your own agent. Use conservative values, not optimistic values. The listing agent will usually lean toward upper values, but not always.

Why is the house for sale? Distressed seller involved? Why would they go below market value, is my question.

How will you be financing the deal?

Seems like he has good rental references. The income is important, and there. I would want to see why his credit rating was so poor. Does he pay his bills, taxes, and utilities? In other words, I don't care about his credit cards, but does he pay the bills to live? As a veteran, I'm partial to giving a break.

I wonder if it's permissible to question how long he is due to stay at this assignment? Seems non-biased and relevant, but you never know, so check before asking.

Oh, yeah -- on the one landlord who was perturbed he had to leave early, how was his tenancy otherwise?

Hey, Mark. Podcasts, which you are onto, are definitely a good way to shape your mind to 'get' the lingo.

Also read the BP ultimate guide, for sure.

I'd recommend getting the Millionaire Real Estate Investor, too. It's on Amazon, you'll find it.

Have you read Michael Gerber's EMyth Revisited? You should, everyone should. And learn how to analyze deals, for sure. Find a local experienced real estate agent who has worked with investors.

That'll keep you busy for a while. But dive in, as soon as you think you can, or sooner!

This stuff is pretty simple, if you can find someone to explain it to you. I am always amused at how many of my fellow Realtors are completely freaked out by this, so I try to find ways to help them.

I recommend you get your real estate agent to give you some tips on how to predict these costs. Tax proration is pretty simple, once it's understood, and the same with interest on mortgages outstanding. Most of the potential fees are pretty predictable too, so again, get your Realtor to help. If you were in my state, I'd just offer you my spreadsheet (Excel), but mine would not be right for you.

Do you have a real estate agent/broker as part of your virtual team? Ask them to help define what the market value is. Look at the assessor site to get some idea of the assessor's valuation. It doesn't necessary relate to what you're doing, but it's one more valuation fact.

Check for other properties about the same distance from areas people commute to (population centers, perhaps). Some people LIKE to live in more isolated areas, and this house might be just the ticket. Your agent should be able to give you an idea of how quickly things move in that market niche and location. Ask the agent for comparable properties.

Just a few ideas to consider.