All Forum Posts by: Nathan Shotts

Who is your go-to skip-tracing service? I'm not looking for cheap or free. Who can you recommend that will provide me accurate, quality results in a workable format with a quick turn-around that I can easily interpret, integrate, and scrub?

I know this is a dated thread, but its important to NOT use the TREC promulgated Loan Assumption Addendum when trying to purchase a property subject to an existing mortgage. This addendum is ONLY for use when ASSUMING a loan. ASSUMING a loan means that the buyer is accepting all obligations for the note. When buying a property SUBJECT TO an existing mortgage, the buyer is not assuming responsibility for payment of the note - that responsibility still lies with the initial mortgagor/original borrower. That's actually the main benefit of "sub-2" deals, and you'll complete negate that if you do an assumption. 

Neither TREC or TAR have sub2 forms, so make sure you contact a real estate attorney to have them draft one for you. I wouldn't recommend using a form you find on the internet....

This. 1000 times this. You have one of the most valuable resources available to a newbie investor - time. Use that time on the road to listen to EVERY episode of BP podcast, and then every audiobook they recommend on the episodes. You'll get a PhD in real estate in no time and make money doing it.

@Eric Telese that definitely would have me concerned. I have impeccable credit, high income, buy low LTC (55-60%), and finance my rehabs in cash. Even then when I have gotten hard money its not that cheap.

I also loan money occasionally and wouldn't consider lending at those rates as it isnt worth my ROI for the risk profile of a flip unless you have an established relationship (read 3-5 deals in the past year) with the lender.

Most of the hard money lenders have private lending backers or institutional money that expects an IRR of 8-10%. Check out Fundrise or Peer Street, etc. You can provide an IRR of 8% when you're pumping out hard money loans at 0 points and only 8%.

@Camille Johnson if you're paying double digits to private lenders why are you scared of hard money? May actually save you a bit.

Also, have you thought of unsecured loans or a line of credit from a small bank? I use both of those tools in my business for cheaper money.

Agreeable gray from SW is another great choice. Or if going cheaper from Home Depot, Smooth stone by glidden is very close. Always satin or semi gloss, pure white trim in semi gloss.

Are you investing in your local market? I'm also curious as to which turn-key provider you've used. Seems there are a lot of mixed reviews on many in the "hot-bed" cash-flow markets.