All Forum Posts by: Pedro Amador

 Idk how much this man is willing to invest yet . But lets say he lends me 50k and we do interest only @ 10% for 6months . I would essentially be paying him 833.00 a month until due date and then i would pay him the 50k all back right away right ? Am i missing something.  i know i need to have a promissory note and have him as a second lien holder . 

 Sorry if its confusing 

Joe thank you for your time. So to be as transparent as possible let me lexplain my situation so i cannot really say how much i will allowed to borrow but i am greatfup with what i get . My criteria is homes PP under 150 minues rehab etc . I want to use the money my PML lends me to use as a HML downpayment. So my Hard-money will pay for the PP and i will use left over and my funds to front the rehab, to later get reimbursed by the HML . I know in most situations i see a PML w enough capital to fund the Purchase and the REHAB . I am looking at this as a worst case scenario meaning he might just want to lend me a small amount such as 20k or something light around that neighborhood. I dont have the history for lender to not ask for a downpayment so i cant avoid that part which is what i want to use the PML for and i will use my fund on reserve to pay for holding , interest . My goal is to make a minimum of 30 k on a flip with wha i make profit off that i will just re set aside and start building my capital faster to then buy and hold. I would like to use my PML for the duration of the project so about 3-6 months and then if he likes what i do i would like to hold his money and use it for a year or teo and just pay him interest and then the total amount at the end of the contract . But for now i want o use my PML funds to pay the hard money downpayment and the up front i have to come out of for the rehab

Happy new year hope everyone's having a great start! Ill get to the point i am meeting w a potential private lender this up coming week, i have been doing my homework and educating myself with what i can to approach the situation. This will be my very first deal ever. I plan on doing a flip. Im not sure how much this man is willing fund i do know that he has two very successful restaurants . I dont plan on talking numbers or asking for anything our first meet i want to get to know him ask him questions and find out what his goal, and expectations are for his future and his money. That being said here are my questions

What do you ask you PML when you first meet them and what crucial questions should i ask that you wished you had asked at first?

What term should i include in the agreement?

How should i structure the lend. Lets say worst case scenario he does decide to invest w me and he lends me 30k should i do maybe 10% interest on the 30k for 4-6 months. ?

If my numbers are off can someone point me to the right direction on where i can figure out how to set my numbers right all i find is info on how to build a relationship w PML but no actualy terms and numbers.?

Would it be a good idea to use Private money for a hard money down payment and the rest to pay my rehab and that i have to pay up front before getting reimbursed?

Thank you for your time !

Happy new year hope everyone's having a great start! Ill get to the point i am meeting w a potential private lender this up coming week, i have been doing my homework and educating myself with what i can to approach the situation. This will be my very first deal ever. I plan on doing a flip. Im not sure how much this man is willing fund i do know that he has two very successful restaurants . I dont plan on talking numbers or asking for anything our first meet i want to get to know him ask him questions and find out what his goal, and expectations are for his future and his money. That being said here are my questions 

What do you ask you PML when you first meet them and what crucial questions should i ask that you wished you had asked at first?

What term should i include in the agreement? 

How should i structure the lend. Lets say worst case scenario he does decide to invest w me and he lends me 30k should i do maybe 10% interest on the 30k for 4-6 months. ? 

If my numbers are off can someone point me to the right direction on where i can figure out how to set my numbers right all i find is info on how to build a relationship w PML but no actualy terms and numbers.?

Would it be a good idea to use Private money for a hard money down payment and the rest to pay my rehab and that i have to pay up front before getting reimbursed? 

Thank you for your time ! 

@Bruce Woodruff

Thank you sir

@Bruce Woodruff

Well when i gave 3 different lenders the scope of work and the rehab estimate they all said i was being charged too much and this was without permits on some of the work so . Yes i do want to do everything the right way im just being pulled into different directions w the lender and the subcontractors.

Also if i get permits for adding an extra room and get everything done once the city passes me how do i get it on paper that now the 2/1 is a 3/1 or does the city do this automatically once i pass all my inspections

I have two questions but let me give you the details as to not confuse anyone. I went to go look at a property this week. SFH , 2/1 w a detached garage. 1940s . Fort worth texas area

•No existing central HVaC system.

•Electric needs upgrade all thru out home.

•plumbing needs to be updated all thru out.

1st question is

If hire to install the HVAC , get the plumbing replaced, and as well as all new electrical do i need to pull out permits as long as i get everything up to code and if the buyer send his inspector out itll be good can i avoid having to pull out permits and put in the description of my home when im selling it (that everything is upgraded and new) ?

Because w permits alone alot of my bids are charging almost 1200 more plus the permit .

2nd question

When im adding another room in the same square footage inside a home do i need to pull out permits in order for it to be legit and on paper . In other word to covert this 2/1 into lets say a 3/1 as long as its in the same sq footage and up to code do i need to pull out permitsor just when im adding square footage . My contractor said if im adding a room withing the 1040 square feet i dont need permits only if im adding sq ft to the homes but how will i get it to show on paper in the print do i need permits in order for it to be legit . ?

Thank you for your time and im sorry if i confused anyone !

@Marc Ferguson I’m getting prop. Sent to me daily from a few diff wholesalers i know to do my due diligence and run my numbers as to not get screwed by then but i haven’t done anything yet just been analyzing deals and then it hit me if i was to send in an offer how do i got about it which is why i had this question . Do i need to work with a realtor now or is it best to just hire a realtor to help sell the prop.?

@Marc Ferguson ok yes i think this is what im looking for ! . I just didnt know exactly how to go about doing this . I figured it was more like ‘hey kyle that prop. On elm st. 55k and its either yes or no and then if we agreed we would then go to getting papers signed . But now i know i need this form when submitting an offer ! See i knew there was a professional way of approaching/submitting an offer in. Thank you everyone for the help i will now be looking for an offer template to turn in or submit my offers ! Im sorry for all the confusions and thank you everyone