All Forum Posts by: Fred Dray

Hi Edita

I think 45 days is too long especially if you are near a university.

I managed a 72-unit complex in Glendale Ca and usually had my units rented within 2 weeks at $1650 for 2+2. Granted Glendale is not as depressed an economy as Vegas.

A 14% vacancy rate is very high.

Check to see what average rent is for units like yours. Perhaps lowering rent by $50 would get the units rented faster. Also, what do the units that rent to students charge?

good luck

Thanks everyone for you encouragement and support. Feels like a family here.

Karen, I appreciate the heads up about the key words. Otherwise, I would have overlooked using them.

I have to laugh at everyone's comments on the stock market. I agree with Rob...it's like gambling....you do what the precentages suggest...but you're always hoping for the one last thing to happen that will make you a winner. Unfortunately, the one last thing..if it occurs...usually results from good luck. And the worst part is the stomach churning one endures waiting for that good luck.

I so look forward to learning more about the real estate market and hopefully generating some income.

Will and Addiel, thanks for your introductions and I'll definitely be in touch.

Best of luck to all of you and everyone else on the site. I really feel fortunate to have found this.

Hi All:

Let me start with what an amazing and informative site. Thank you for creating and maintaining this, Joshua. I'm also impressed with the knowledge of the members who post here and their willingness to share. Wish there was a site like this for stock investments.

I have 17-years experience as an apartment manager. Before that I worked in new track home construction as a finish foreman for painting and drywall contractors.

I find the stock market stressful and difficult to derive profit from. Thus, I'm hoping to invest in real estate. My plan of attack is to finance a few flips and build up my capital to the point where I can purchase a property to rent out.

Meanwhile, I want to learn about flipping to determine if it is something I want to do for myself. Problem is, I think properties in my area, Los Angeles, are too expensive for me to try and flip in.

At this point, I'll likely just be reading and learning from other's posts. However, I do have extensive knowledge in apartment management, leasing, make-ready and dealing with tenant issues. If anyone has questions in those areas, I'll be happy to share my experiences and thoughts.

Thanks everyone and best of luck in your real estate endeavors.
Fred Dray

Wow, thanks for all the great replies. There is alot to think about. We have not signed a contract yet...these are just the proposed terms. That's why I'm asking for advice.

I am supplying the funds and he acquires the property, schedules renovations and sells the property.

The guy I'm working with is a licensed real estate agent working for Keller Williams. I know him through a friend. I think he is honest, but has not flipped many houses. He is flipping in the Quad Cities area and has a crew there that performs renovations. So, this is out-of-state for me and I'm financing based on his experience and knowledge.

Yes Ron, I think joint venture is the best term I could find on the net to describe this. Thanks for the comment about me bearing the risk. I wondered about that and how to structure the deal to share the risk.

Thanks for bringing up the rehab, Levi. I wll have to double check. He has a crew that has worked on several houses in that area. I'll find out what repairs they performed on other units and what the costs were.

Good points, Ned. My partner is just starting out in flipping and acquiring property. I think at this point he's just trying to complete some transactions, so he has a track record to show other investors. I know he's conducting seminars to raise money. Most of his projects are for more expensive properties, this is in the range of what I can afford to lend.

Thanks so much for your advice/comments. Now I have an idea of what to discuss when we sit down to write up the deal. I'll keep everyone informed as to how this works out for me if I decide to put up the money.

Best of luck to all of you in your projects as well.

Wish I had found this site months ago...so much to learn. I'm serving as private lender (my first experience with this) and wonder if I'm getting a good rate/deal.

Not sure what info to provide, but here's the gist of the deal.

Purchase price of property $23,000. 3-bd 1-ba house (1,087 ss ft) built in 1959.
Renovations $7,000. Which include new roof, paint and new gas lines.
Wholesale fee $1,500
Closing and Holding costs $1,000

Total cash in $32,500 (which I am supplying)

Estimated selling price $45,000

Total projected profit after 5% closing costs $10,250

of which I get
Investor Payout (5% for 6 months = 10% APR $1,250
Investor Projected Profit (20% profit split) $2,050

So my investment of $32,500 for six-months will return $3,300

Does the above seem fair? I can't find any sites which dicuss what the interest rate would be for private lender real estate deals.

Thanks for your comments and advice. Hopefully, I will learn and be able to help others in the future.