All Forum Posts by: Peter Giardini

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Congratulations...

You have done well.

As Jeffery stated most associtations are centered around many new investors, some old-timers who never share anything, and a guru hawking expensive books.

Another concern I would have is... can you own an income producing property as a non-naitve.

I would check out how many other non-naitves are doing this and what kind of issues they are experiencing.

Also, how long to you intend to live in Thailand? When you decide to move will you be able to sell?

I am not sure there is a document that can protect both of you... and in today's environment just simple claim... real or imagined of abuse or hostilities and there isn't an agreement around that will survive those claims.

I currently have a client who just went through the same thing. He is not living in the house he is paying for... and not a happy camper!

I'm with Nick.... don't do it.

Thanx for the heads up.

I am sure we will be seeing many more scams in this economy.

I have been lucky regarding scams... but have had to deal with more then my share of squatters.

All professional tenants looking to free-load.

I have used this method. The results were mixed. I stopped using it when I got my head handed to me in local (Baltimore MD) rent court.

One thing I would caution... keep your approach very simple. If it takes more then a minute to explain, the tenant is going to cry that they didn't understand what they were signing and that you were trying to get one over on them.

Good Luck...

The private lender needs to have their investment secured by the property.

This would mean that at closing you would sign a mortgage... with the private lender being essentially the bank. That mortgage would be recorded to give the lender a first position on the property should you default.

Here are a few of the documents you might want to execute to protect the private lender...

1. Borrowers Loan Disclosure Statement,
2. Purchase Money Deed of Trust,
3. The NOTE,
4. Balloon Rider to NOTE,
5. Guaranty,
6. Assignment of Rent and Leases.

Any good title attorney will be able to create the required documents.

As for the terms of the loan...

Typically private lenders will charge points up to 5 points and interest up to 15% annually. These are entirely negotiable between you and private lender.

I would reommend that you not promote unually high rates of return... (i.e., offering high points and high interest payments) as it will scare many people away.

Also, the terms for these types of loans are usually interest only payments, and 6 months or 12 months in length.

Good Luck...

Maryland is a great place to invest. Particularly PG County and Baltimore City/County.

Managing contractors is always a challenge. I would have the contractor give you an acceptable proposal, execute a contract that includes progress payments (draw schedules) and performance timelines.

If this contractor is a partner these steps are just as important... you will need to add one more step... and that is the specifics of the partnership.

Who is responsible for what... the mortgage, the financials, cost overruns, who does what work.

I wrote an article and posted to Bigger Pockets on partnerships.. you can find it here... http://www.biggerpockets.com/articles/1285-real-estate-investment-partnerships-making-them-work-for-you-

If you need to learn how to better estimate repair costs check out the Rehabbers Lab in the events section.

Good Luck!

That is some rant... I love the "murdered a minute of my time"... may I use that in the future?

Your points are well taken. The explosion of social media has been a boon in terms of creating great relationships both personal and business... and it is the astute individual who works hard to balance those two.

I know I am constantly being challenged to provide non-business stuff on my Facebook page and Twitter.

Finding the balance and of course participating instead of just selling is the key.

Thanx for the rant... which was not only grounding... but right on!

Welcome aboard... there is a ton of information here in BP... jump in, participate and profit.