All Forum Posts by: Nathan Waters

I have a few private investors that are very interested in lending to me. I have had informal conversations with the individuals and they are on board for the most part. Obviously they would like details on the deal. I want to present something formal. I am planning on showing them some before pictures of the property along with the BRRRR analysis to show where the money will be spent and how they will be getting their money back after the refinance. I would also show the numbers along with before and after pics of my most recent renovation to show that its a project I have some experience with. Does anyone else do anything different? What do you usually include and how do you pitch to investors?

thanks Rick. By the way, San Antonio is my old stomping ground. That's where i grew up before joining the military. I've heard its a great market. 

It could be one or more people. In this case it's a few individuals.

@Tom Jones

I have a few friends and co-workers that want to invest. The terms I am looking at are basically 10% interest only loan with no prepayment penalty and a 12 month balloon payment. I would have anywhere from 1 to 3 individuals contributing to the project. I have untapped equity in another recent house I have done that I can use to secure funding as well if necessary. It would be a similar type of investment but secured from another property that is already cashflowing. Does that answer your question? I wasn't sure if you referring to the source or the structure of the funding.

@Kenneth Garrett

Thanks for the response. This is exactly the information I was looking for. Several of my coworkers are interested in what I'm doing. Mostly because I never shut up about real estate. And they are all relatively high income earners with a desire to diversify. When they overheard me talking to another real estate investor, 3 people all jumped into the conversation eagerly looking for a good rate of return with no involvement. This is my ideal situation. I want to cash out refinance after the project and pay them all off between 6-12 months. If things go well, I would like to do one of these projects every 2-3 months. 

I found a 3 unit that I think will be a good investment. I can purchase and renovate for less than 75% of the ARV and the rental numbers look pretty good. I'm going to do a more thorough walkthrough with my contractor this week just to make sure we aren't missing anything. But my real question is this. How do I go about getting the money from the investors and ensuring that their money is secured by the asset? I am assuming I will have my attorney draft a private lender contract. Take it to a title company to have it recorded, have the money wired into our business account and then deposit the loan payments as agreed upon to the investors. Its seems simple enough, but am I missing something? This is my first transaction with non traditional lending and I want to do things completely legit and ensure my investors are happy with everything. So far they are very happy with the terms we have agreed upon and I could see this becoming a great long term relationship. Its up to me to make sure it goes well.

welcome to bp. Good luck on getting started. The podcasts are a great resource for advice and motivation. And this site is great for networking and getting answers others who have been there. Plainfield and Naperville would make great area for flipping if you get in good on the buy. Keep is posted on your progress. 

@Lee S. & @Aaron Cullen,

Thats exactly what I did with my 2 cash properties. I closed shortly after hitting the 6 month mark but started about 6 weeks in advance. Lenders are ok with this and familiar with the process.

I was able to do a cash out refinance before right at 6 months. It was a cash purchase

i do some work myself. Most of the big items i have a contractor do. I work full time so it's impossible to turn a house in a short amount of time without contractors for me.