All Forum Posts by: Nick Marshall

Hi Bigger Pockets Friends!

My partners and I have worked hard to find what we believe is a very good deal but we have some questions.  Here is a numbers run down of the deal:

Purchase price: $190k

Rehab costs: $125k

Comps: $460k

Flip Type: Convert duplex to SFH

Flip length: 12 months

Location: Forest Park, IL

50/50 split Investor ROI: 20%

However, the next step is getting the money for the down payment and we are finding it rather difficult because it is more than we can afford ourselves.  I'm curious to get feedback on tips for finding people who are looking to invest their money in deals like this.  It's commonly said that if the deal is good enough, the money will be easy to find.  Are investors finding more lucrative deals and that is why this flip deal is unattractive?  Or do we just need to get out and network more?  We are happy to upload our underwriting to give more detail on how we got the numbers above if that would help.  We believe this is a conservative underwriting.  I appreciate any help!

Thanks,

Nick

Thanks so much @Antoine Martel!  This is really helpful insight. 

Just a couple quick questions.  In regards to putting the private lender in 1st position on the property as a lien holder, can we still do this if the private lender (I probably should have used the word investor) is not fronting the cash for the entire property but instead the amount needed for the down payment?  We will still be using a mortgage to finance the remainder of the property. 

Also, do we need to let the money sit in the LLC's account for a certain period of time before we are good to move forward? Curious if the bank providing the mortgage will need proof it has been there for a certain period of time.

Hi everyone,

We are working on our first deal and after sitting on the sidelines for a while and reading all thing BP, we are very excited to have our first offer accepted!  

We are looking for advice on how to structure the new LLC we are forming with our private lender. The private lender is providing the cash needed for the down payment and we are putting in the sweat equity. Do you suggest making the lender an owner in the LLC's Operating Agreement or do you suggest treating the lender as a bank and asking for the money up front so the cash sits in the hands of the LLC and the lender is treated as a bank? We attempted the first scenario but we have run into many issues where the lender has had to have his credit checked many times and is constantly being bothered by the bank since he is the source of the money. This has not left the lender too happy with the deal so far so we are looking for other options.

Thanks for any help you can provide!