All Forum Posts by: Mike Lee

Thanks @Percy N.  I thought I explained well enough, but I see I may have been a little too ambiguous in my wording.  I'd prefer to limit the amount of info I give on an open forum, as it's a working business model and I'd like to not give away too many trade secrets.

I have an investment vehicle:
1. RISK: minimal as it is backed by a deed (home being occupied by and therefore taken care of), and a promise to repurchase the investment.  The risks that may be associated with this investment  are if the company becomes insolvent, but even that risk is marginalized as you still have an actionable deed, purchased at 60-70% of value, to a house that you can foreclose and take full possession.
2. REWARD: That is one of the questions I am trying to have answered.  What percentage would you expect as an investor that would make you happy with this secured investment with very minimal downside? 

example:
If I were to sell you a guaranteed cash flow of $6,000 plus a return of your initial investment, to be paid back within a one-year time frame, how much would you pay me for that cash flow?  ($75k payment now to get $81k in one year = 8% return).  Keeping in mind that this investment is secured by a deed, and a promise by my company to repurchase the total investment back from you if the debtor doesn't pay within the time frame.  Additionally, you could also choose to keep the house with the option of foreclosing on the property and take full possession.

Does that help in any way?  

Not sure if this is the right forum, but I wanted to test the interest level of a business idea I have been working on.  

If I was to offer an investment vehicle that guaranteed an agreed upon return which would be backed by Real Estate (SFR), the local Government, and an option for a company buyback if the homeowners didn't pay the agreed amount:

1. would that be something you would be interested in?
2. what percentage would you need to make this worth your time and investment money? Please be realistic. (Yes I understand you can flip/wholesale/yadda a house and make a great return, but what I am referring to here is the infusion of passive money... solo 401k/IRA, investment dollars for yearly cash flows, etc.)
3. Would the option of using your retirement fund (401k, IRA, ...) as an option for funding a deal be appealing?
4. Is an annual term too long?
5.If given the choice at the end of the term, would you prefer to take the house (at which time you could uncloud the title), or would you prefer to have my company buy it back?
6. Would the option of using your retirement fund (401k, IRA, ...) as an option for funding a deal be appealing?
7. Any other items that would add attraction to the deal.

I am already doing well in the real estate development world, but I feel that there is potential in this other option.  I was hoping to do an informal survey group and ANY advice you can offer would be great.

Thanks in advance BP motivators for any and all info!

Mike Lee

Would love more information on this land.

Hannah,

I am especially interested in the 198 unit Greenville, SC property, but would also like to take a look at the 210 unit Atlanta property.  Can you please provide information on both? 

Michael O. Lee

I think we have a lot of overlap here, as I was overseas for an extended period of time, and am now self employed. Needless to say, I have been fighting that same battle. I think buying a house, all cash, is a bad idea and I made that similar mistake (paid off two home when I got back, and regretted it).

Since you are looking at multifamily, I would encourage you to do this. SFR lenders will absolutely look at your income and employment history (aka they want W2's). Commercial lenders could care less about your income (although they will look at your reliability, and potentially your track record), and care more about the properties income. "Can the rental income from the property support the mortgage?", essentially wanting to know if the DCR is ar 1.2 or better. For this reason I would highly recommend looking at multifamily greater than 5 units (that's the commercial lenders threshold; below that your income and job would be a factor).

I am constantly looking in the Atlanta area, and although it might be hard to find a multifamily for ~$366k (the $110k / 30% -->typical amount down), you could always partner or participate in a syndication (crowdfunding).  I sent you a PM... let me know if you want to chat more.

I am very interested in learning more about IRS Auctions.  Are there any encumbrances that would supersede this sale, what are they, and how would I find out about them?  Honestly I'll take any and all advice on these, and could use some "pointing in the right direction" on research and/or contacts.

I'm looking for an investor friendly agent that can help me Identify multifamily investment properties in the Tampa/St Pete's/Clearwater area. He/She must be familiar with the area, and should know how to deal with a private investor. Can anyone point me in the right direction?