All Forum Posts by: Mark Whitted

Employer match is NOT a GUARANTEED 100% return. You COULD lose ALL of it. Although probably not.

@Joshua Zapin 

I have listened to High Return Real Estate's podcasts, but I have not talked to them yet. I would like to meet with them at some point. Let us know if you have more information.

I’ll be there!

Originally posted by @Jay Hinrichs:

@Mark Whitted  so this company brokered the note for you they made  the points ?  and you get the yield.. this is standard practice.. what kind of due diligence did you do on the borrower and the collateral?  or did you just take the brokers word for it.. and who is controlling the rehab draw process's for you ???? where funds held back.. ?  and are going to be given out in controlled draws with inspections. ???

 This was much simpler than that. No broker. No points. Just the 12% simple interest, 12 months interest only with the balloon. Theses houses (4) are actually in pretty good shape and currently tenanted, although at below market rents. I received the inspection reports and scopes of work. AWB is a turnkey provider and I dealt directly with them. I did all of the due diligence on them that I could think of including articles of incorporation and certificates of good standing for FL, where they are based, and OH, where the properties are located. I also spoke with two references. I have a 1st and only lien on the properties. I had a Cleveland real estate attorney review the documents. He ended up rewriting some things and AWB hd now problem with that. I might have been able to do more but I pretty much ran out of concerns and felt as comfortable as I felt like I could for my first deal. That $100k wire transfer was still pretty scary! 

Not raining on my parade. Sorry, but there are all kinds of ways to "invest in real estate", including notes. I just needed someplace to park my money short term until I turned 59 ½ and could withdraw from my IRA without penalty to do "real" investing. That milestone has passed so I'm looking forward to the repayment of the note so that we can get started on rentals.

Originally posted by @Jay Hinrichs:

do you know if you invested in a PPM note fund or an individual note..  if its a fund.. and they can't send the payments to the correct address.. that would be weird.. if its an individual note I can see that.. since they set up the deal with ET they should know the payments go there.

sounds like your doing short term rehab funding  Is that what you think your doing ?

those are standard rates in the industry... do you get to  see your collateral or ??

 I’m not sure what happened with those first couple of payments. They appear to be using a payment service. But they got it straightened out. It is an individual note. And yes, it’s for short term rehab funding. I received all of the information about the collateral so that I could perform due diligence beforehand. My wife and I took a research trip through the Midwest right after we closed and got to SEE the houses. 

Originally posted by @Kevin Allen:

Interesting, I've been thinking of investing with them myself. What type return are you getting?

 Because I invested $100k I was able to get 12%. Their minimum investment is about $25k and for that you’re probably looking at 10%. It’s interest only for 12 months with a balloon at the end to return the principal. Not too shabby. Shoot Peter an email. I don’t get anything for it but feel free to mention my name. 

@Levi T. Is towing for expired plates a profit center for you? I had my car towed from my driveway with no notice for expired plates. I know it was in the lease, but I still felt this was really sleazy. We were in the apartment cleaning and packing. The garage was being used for move staging so I parked in my driveway. I came out and the car was gone. It cost me several hundred dollars and about an hour of my time to get it back. Don't try to tell me that the management company didn't get a piece of that. 

@Thomas S. Why would you assume the tenant would lie and not assume the seller would lie to make the deal look better and unload the place?

@Federico Gutierrez Why would a tenant not sue a landlord with only one property? Especially if said landlord is a doctor or a dentist with millions in other assets? And it's "Quit Claim" not "Quick Claim". @Adam L. If you DO Quit Claim from your name to an LLC, DO NOT forget to change the insurance from your name to said LLC.