All Forum Posts by: Matt Powell

@Pavel Reyes Valdes

Did you end up going with United? If not, which brokerage did you choose?

Suppose it's possible the OP is just using hard money for a down payment on a conventional/portfolio/seller loan. Could also be using it for rehab costs so he can increase revenue from the property by raising rents. Would be a great way to leverage hard money in a limited capacity while hustling to earn that money back to pay it off quickly.

But I agree - using hard money for the entire loan on a long-term hold property doesn't make sense unless it's literally the only type of loan you can get because you have bad credit, debt-to-income, etc. And even then there would be obviously be other priorities before getting loans.

I'd also add that home equity loans and lines of credit could be good alternatives to hard money, depending on whether the OP currently owns and has equity.

Bryan - side question to your answer. Why don't some MLS allow Realtors to search for REOs? Just varies by MLS? (Which varies by region, correct?)

Hi all. I'm hoping to use a portfolio lender to finance my first flip. If I find that BankA offers residential rehab portfolio loans, will their terms depend on their confidence in the deal, to include my experience and the quality of the proposal? Or is it more like, BankA offers a product and it's always structured a certain way, has a certain interest rate, duration, etc?

Thanks!

Also posted in the Deal Analysis forums...

Hi all - new PRO member, and happy to be here. Bear with me - the question is specific to my situation, and I'll attempt to keep it brief. All advice welcome.

Attempting to line up first flip deal, but stuck on one of the first steps - lining up financing. It's not a matter of not having options. In fact, I have many. I have good credit and income, and my folks - who are retired - have money they're willing to help me out with. I would estimate that help could be as high as $100k, but we haven't talked numbers. And moreover, my father is eager to be involved.

That said, it's my first deal, and naturally, I'm anxious about the outcome. I'd rather not borrow a large sum of money from my parents on a first deal, but at the same time I recognize that money from them would be cheaper than money from just about anywhere else.

So ideally, I'd like to use a portfolio lender for the bulk of the loan, and my father for a much smaller chunk. Assuming that's something I can do legally (again, I'm very new), I have a few questions:

• Will a portfolio lender loan only a portion of a property's appraised value, if I only need a portion? I assume so, but I want to make sure here.
• How should I structure the deal with my father so that it's professional and makes him money, assuming a positive outcome on the flip?
  • Split the profit 50/50?
  • Give him interest on his money? What's reasonable?
  • Both?
  • Other?

These may be simple and obvious, but I'm in the very earliest stages of understanding my options. Any advice welcome. Thanks!

Hi all - new PRO member, and happy to be here. Bear with me - the question is specific to my situation, and I'll attempt to keep it brief. All advice welcome.

Attempting to line up first flip deal, but stuck on one of the first steps - lining up financing. It's not a matter of not having options. In fact, I have many. I have good credit and income, and my folks - who are retired - have money they're willing to help me out with. I would estimate that help could be as high as $100k, but we haven't talked numbers. And moreover, my father is eager to be involved.

That said, it's my first deal, and naturally, I'm anxious about the outcome. I'd rather not borrow a large sum of money from my parents on a first deal, but at the same time I recognize that money from them would be cheaper than money from just about anywhere else.

So ideally, I'd like to use a portfolio lender for the bulk of the loan, and my father for a much smaller chunk. Assuming that's something I can do legally (again, I'm very new), I have a few questions:

• Will a portfolio lender loan only a portion of a property's appraised value, if I only need a portion? I assume so, but I want to make sure here.
• How should I structure the deal with my father so that it's professional and makes him money, assuming a positive outcome on the flip?
  • Split the profit 50/50?
  • Give him interest on his money? What's reasonable?
  • Both?
  • Other?

These may be simple and obvious, but I'm in the very earliest stages of understanding my options. Any advice welcome. Thanks!

Georgia - what's the address?

And out of curiosity, how did you win the auction? Auction.com, courthouse steps, etc. 

Hi all,

I'm not yet looking at brokerages with which I can hang my license because I don't have my license yet. But I'll be working toward that soon. I'm asking this question because I want to start vetting investor-friendly brokerages now so I can be ready to go when I get my license.

So, that said, I'm curious what the process is like when candidates apply to a brokerage. For the sake of the discussion, I'm thinking about big houses like Century 21, Long & Foster, and Keller/Williams, though I'd be interested to know if the process varies from the big guys to the smaller boutique operations. Are candidates carefully scrutinized through an interview process, or will brokerages take any and all salespeople they can get their hands on? Seems to me they'd be willing to give just about anyone a shot, and if anything, let the salesperson go if he/she underperforms.

Hope my question makes sense. Just want to know what to expect when I start getting into serious discussions with one or more brokerages about joining them.

Thanks!

 I'm curious what broker you went with. Are they local to California, or nationwide? You can PM me info if you're more comfortable.

This thread has really given me a lot more to think about, and I'll admit it's not as clear of a decision now to get my license as it was before. That said, I see advantages beyond MLS access by getting my license, namely education and other conveniences like automatic lockbox access. If it were only MLS, I might not worry about it (doesn't Zillow get you like 90% there anyway?).