All Forum Posts by: Michael Hickmott

If you owned it within an IRA (self directed) you would pay zero taxes, if you are married, between you and your wife you have a life time exemption of $500,000 on capital gains. Don't know if this helped?

Looking for an investment partner for reasonable financing for new buy and hold deals. What is reasonable? A loan against stabilized rental property single family homes in town, with a senior mortgage. Since I already have "skin" in the game 100% would be nice, just think in three years that would be an 85% LTV! If you want 18% for 90 days let's not waste one another's time. If you want upfront fees don't bother responding. I only work with brokers that can deliver. Actually I don’t really want a loan what I want is an investment partner that thinks like I do that wants to make a great return and have a lot fun doing it. If you only want to invest then you should know that everything I do is done through a lawyer and escrow. The deal could be monthly payments of say 8%/year, a balloon in 3 years and an added profit kicker at the end, which could raise your return to around 15% or even higher! I have one deal now that will net you 21% today. Perhaps some Real Estate we can sell and split the profit 50/50. There are a lot of ways that we can make this work.

I am open to rent sharing, as long as you are open to sharing in the overhead costs, but don't expect monthly payments and rent sharing and points and profit. I need $150,000, but if we can work together we can turn that same money around until we do $2.25 million in rentals or much more. Frankly, if I could find the right investment partner match we could do 500 units; my friend in Philadelphia has already accomplished this. The exit strategy is a community bank that will provide a commitment letter agreeing to fund 3/1 or 5/1 after milestones are met. I have a portfolio lender right now that will do this. In fact we could make the deal subject to that written bank commitment, to show you that this is a safe investment. I've done over 100 properties. If I don't meet the milestones then you will own some really nice rental properties. I have never had a deal go "south". Let's do some business and get creative instead of the LTV and ARV nonsense trap. If you can't think don't bother contacting me. I have always made my partners money. Frankly I need an investment partner; I really don't want a loan, if you lived in the greater Tampa Bay, Florida area that would be better. If you want to know more contact Mick at [email protected]

My company, EquaTrust Properties, has several free and clear performing and stabilized rental properties. We have been in business roughly 2 years. We do not flip or wholesale properties. We only purchase, rehab and rent to hold. We do not ever deal with banks, period. I am a General Contractor and we have a CPA and Certified Financial Planner as partners. The company is an LLC set up as a partnership for tax purposes. The loan will be to that company and not to me personally. I do business on this basis, every deal stands on its own, and my individual situation is of no concern to anyone, if you want a credit report just ask. It's business to business.

I am looking for about $120,000.00, either a line of credit using the properties or cash out. Here are my preferred financing terms;

No points, $120,000, for 36 months, 8% interest paid monthly, with a 36 month term then the principle is retired. 1st mortgage lien against the properties. I prefer to NOT deal with Hard Money, unless I can borrow the way I prefer (as above). Why, because I require $120,000, not 65% of $120,000 (funding is 100% only on every single deal), my “skin” in the game are these free and clear properties, which are worth approximately $200,000, each has solid rental track records. If you are a broker, DO NOT CONTACT ME unless you can meet the above conditions, Principles only. Use of funds to purchase and rehab new properties, so they are also free and clear title.

WE never pay up front fees for anything so if you ask the answer is no. All monies and agreements will be through our company lawyer and through the escrow account; insurance and taxes are paid into this account and confirmed by our attorney and not withheld or paid to any other lender account. We are looking for a strategic partner and one that will be able to fund about 1.2 million, based on market conditions over the next 36 months. If you or someone you know is interested in this arrangement then contact me [email protected]

EquaTrust Properties

www.Eqtrust.com

Thanks Chris I did. I talked to them over the week end and the most they would tell me is they are a Delaware company, didn't share their corporate name, but they certainly wanted a lot of information from me, such as bank statements, copy of social security card, and a lot of other stuff that I just don't feel comfortable in giving out to anyone that I don't have any kind of relationship with. I asked them the name and phone number of their lawyer; I didn't get that information either. So I'm moving on, I'm trying to do a 100% seller finance deal today on an 8 unit apartment, in light of no one else coming to the table, we'll see how that plays out. Thanks again Chris, but like I say I did have misgivings right out of the blocks.

Thanks Chris, I checked with the State of Georgia and they are not registered under that name. Funny, my company has a web site and we list our corporate name and the name of our attorney. I have asked this company to give me the name of their company and I will check them out with the BBB, I also asked for the name and phone number of their attorney. I would really like to believe they are legit, because we are always looking for money to finance our deals. To bad there isn't any legit company out there that does this, at least I haven't found one yet, just all a bunch of scams, but after all this is America! I've never been "taken" in a business deal because I always check everything before I make a move.

I have had some discussions with an organization called Privatemoneymen.com they are located in Georgia. They do private lending. Has anyone out there had any dealings with this company? If so what did you think of them and did they deliver, if they didn't then what was your experience with them. I need to know what others think of the company and if they have helped you?

I should also mention that my wife is a CPA and CFP, so we get the best of both worlds. Own the asset in one company, pay the expenses through another and have income distributed through a partnership. Try when possible to pay the majority of your justifiable expenses by the business and not personal. It works for Mitt Romney, it is cost a lot less than he paid to set it up. Don't take a wage.

I do not have intimate knowledge of his dealings, I do know for a fact that he uses seller financing and notes. So most of his dealings are with motivated sellers, as far as I can gather. He does use private lenders (Real Estate Investors) and he is also a hard money lender. So for example, he would have the seller to a multi unit property take back a first senior mortgage than then issue a note for the down payment with soggy terms which will allow him to go back before the note is due and ask for a discount for paying it off early. I have another friend, who I am meeting with today, that borrowed 100% loan to value, $800,000 for a 7 unit building for 3 years at 8% payments of interest only monthly, then 100% principle due at the end of the 36 months. At the end of this period the property a 7 unit vacation rental had increased in value to 2.6 million dollars and one of the banks that turned him down BB&T, loaned him $800,000 7/1 ARM commercial. This is how deals can be done, they don't happen every day but they can be done. I also hate banks, and the hoops that they want borrowers to jump through. I have a rule, each deal has to stand on it's own, no personal financial statements, credit rating checking or other things that banks ask you to provide, all activities MUST go through the LLC or just get up and walk away. Make them follow your plan not theirs, if you follow the Banks requirements it will take you a 150 years to own 4 properties. Do play their game, because that is exactly what it is.

age of the roof and if there are any outstanding, and unfinished permits?  These two things can really cost big bucks if you find out AFTER you buy!

Perhaps I have a different idea. Is there anyone you know that you could partner up with? Hopefully with a better credit rating. Are you handy? If not get handy,get your hands dirty and see if you like rehab. You will need to replace your negitive credit situation with sweat. Try some real fixer upers, I know one guy that started with only $30,000, went into section 8, which is what I do. 13 years down the road he and his partner had nearly 500 rentals and sold out for millions. There is little you can do about your bad credit situation, but I am not aware of many things that can"t be solved by cash flow.But you need to be able to get your hands dirty and want to succeed. Put every penny you can into real estate, stop buying things, there will be time for that when you have real money. If you want it bad enough you can succeed. Don't quit.