All Forum Posts by: Patrick Giblin

I am trying to learn more about hard money loans. in particular the details around typical terms, the process etc. I am trying to learn more both from the standpoint of someone who may use them and provide them as I get further into my investing career. 

@Tom S. Let me know about this group and want to jump in as well.

Starting out, living in Burlington and looking for deals in greater Burlington, as well as out of state in Milwaukee and Minneapolis as I lived in the midwest for a while before returning to VT two years ago. Have lived in and out of Burlington since going to UVM and graduating in 2008.

I work as a therapist for a home health company and looking to real estate to diversity my investments portfolio and generate cash flow in order to give me and my family options in the future in regards to how we want to spend our time.

Interesting idea! Also trying to figure out loan terms....Considering a portfolio loan comprised of partner's collateral with me putting in the 20%, vs just me taking out the loan at a fixed rate, and having may name on mortgage and both names on title...However I feel like that puts all the risk on me, hence my thought of portfolio loan. The home and STR on the property would be managed by my partner..thoughts?

From my research, 50/50 equity split seems common practice. However, how does that split factor in for the person who puts in 20% down payment? Does it makes sense to do 50/50 after figuring that 20% initial investment, such as any equity after the initial 20% down will be split 50/50?

Agree with all, especially @Noah Chappell about potential location in Minneapolis. Even if it is in one of those hot areas, from what I've read about the market on here those spots have been a bit tougher to rent and haven't seen the demand they usually do, so perhaps consider that when calculating rents if its in one of those high demand areas.  If this is your first deal, its a lot of skin in the game. If it was a 200K duplex, running those narrow margin between expenses and monthly cash flow, it would be one thing but that is a lot of spread to cover if you have a tough few months. If you have that much capital to deploy, maybe consider spreading it out among more various units to diversify your risk, which would be possible to do in the varied and diverse Minneapolis market

In discussions about a potential partnership and researching best options for both of us. Someone has brought me a deal and they need funds for down payment and potentially my higher credit score to secure a better rate. So my question is, how do we divide risk vs. money here? This potential partner suggested loan in my name, deed in her name and then them having a lease or rent agreement to pay me. However that seems like I'd be taking on both the overall risk and financial risk if something were to happen. Not sure if I'd feel comfortable wiring money to a personal account, and bank already knows this persons financials and the funds if in this person's account from me would have no seasoning period...Any thoughts?? 

Ditto what everyone has said here. No shortage of renters or buyers in the Burlington market, but but potential changes in housing policy as mentioned above will definitely impact the market here in some way. I would say if you want to get into the Burlington market, be ready to strike quick. Winter is a bit of a down season, but any home, rental or not, of decent quality goes exceptionally fast here in my experience. Example, the duplex next door to my personal residence had 50+ people come on the first day of showings and went under contract that day.

@Marcus Auerbach Great insight and I love the specific insight on MKE! I am really looking into that area as the price points are good for me, I know the area somewhat and have a small group of friends there who have lived there their entire lives and could be boots on the ground.

@Corey Hawkinson-great tip on getting into the attic, using roof rake! Thanks

@Robert McAllister Interesting point on the recourse if anything is deliberately covered up in the winter.

@Henry Lazerow @Charlie MacPherson @Khaled Morad @Account Closed  Love the insight and the concept of looking and working when other people are not and using supply/demand and seasonal changes in my favor. The furthest "south" I've ever lived is Rochester Ny, so the cold doesn't scare me off at all 

@Henry Lazerow

@Christian Barth @Brock Mogensen-great advice thanks to both of you. Keeping my eyes on all markets and working to analyze deals and continuing to learn each day

@Mack Benson Interesting point about the unknown aspect of this upcoming winter, with both the overall market and impact of coronavirus and the election if any. Here in Vermont, in my experience, it really slows down in winter and come Memorial Day things really seems to kick off again. I posed this question because my initial thought was to keep learning through the winter then hit the ground making offers in spring, but didn't want to shut the door on any opportunities in the winter. Thanks for your input.