All Forum Posts by: Owen Dashner

Does anyone else find it mildly annoying when people refer to a foreclosure as a property "going back to the bank"?  The bank never owned the property originally, so why would it be "going back" to it? I've never understood why that saying is used. Any other strange real estate sayings out there that don't make a ton of sense?

Follow me for more useless observations. #lazysunday

Nice work, man! The first one is the hardest, but you will learn more on doing this one than by listening to 100 podcasts.  Congratulations!

Point of clarification - is he taking loans from people, or are they investors (equity)? Or both?  I'm not saying you are wrong but is it possible that the people who invested money with him are part of syndications where the money is tied up for several years (which may very well fit the business plan(s) of the projects?  Tough to say without seeing the docs.

If he in fact borrowed money from investors purely as debt, they would have recourse to foreclose if they had proper loan documents drawn up (Deed of Trust, Promissory Note, Mortgage, etc.). Again, it is tough to say without seeing all of the paperwork for the agreements with the lenders/investors.

As mentioned above, money is normally the issue.  But, I have also purchased properties from an estate where the owner died in mid-renovation.  It may also be a divorce situation, behind on taxes, illness, job transfer for the owner, the city busted the owner for not pulling permits, contractors may have ghosted the owner and/or taken their money, the owner could be in jail/prison, etc. The list goes on and on.  You will likely never know the real reason unless a neighbor or the listing agent has some scoop.  I wouldn't read too much into it. Check your municipality's code violation list to see if the property is on the list.  If not, rock and roll.

You need to get an attorney involved ASAP.  This could very well be a criminal theft issue as well, so you may want to put in a call to your local police department to explain the situation and find out what next steps would be.

You are going to need to put together an overview presentation of the project, including your background and a proforma of the deal.  I would also recommend recording a video of you talking about the project, explaining your vision and why it's a great deal, and walking through the pro forma. I did this recently with a hotel to apartment conversion project, and it is a huge time saver. You can send a link for the presentation to potential investors, partners and lenders.  

Are you going to syndicate, or is this going to be a JV? If it is a syndication, you will need to work with an SEC attorney to draw up the docs.

Wow, phenomenal numbers on your first flip!  Congratulations!

Any legit HML will run their own comps. But, it won't hurt you to submit some strong, valid comps to support your loan request. At the very least it will show that you did your homework and that the ARV you are targeting is validated. This is certainly beneficial and gives you some credibility, especially in a new lending relationship.

Thanks for the suggestions, @Matthew Wilson!

I also like:
@jdamji
@markevansdm
@ryanpineda
@tarlyarber
@jscottinvestor

Keep 'em coming please!

@Sanat Bhandari Jay Hinrichs is correct - I am not aware of any hard money lenders who will loan to owner occupants of a property except maybe a small group in the California area. Regulations are much more strict on loaning to an owner occupant than doing a B2B loan to the point where it isn't worth doing them for the HML.