All Forum Posts by: Roberto Pineda

Like everyone else is saying...their business model isn't any different than any other wholesaler/rehabber out there, including the We Buy Ugly Houses franchises. How would Open Door wipe out the little guy when no one else has been able to do it with the same model? 

And in DFW, we've already had large hedge funds make their way into the market and pay 80 cents on the dollar...little guys are still around.

Unless you think the fact that they are a 'start up' makes them special in some way? A new angle of some kind?

Yeah, I'd like to know too :)

Well, I guess since no else has responded yet, I will give you my perspective but it's not worth much as I have never used any either. 

But the gist is, HML's are a tool like any other. There are situations where it makes sense to use it and other situations where it's a bad idea.

If it's a slam dunk deal where it's going to be a quick flip and there is a pretty good margin to pay off the HML fees and interest, AND you have to move quickly, then go for it. Next to using your own money, it's the fastest way to get capital for purchasing properties.

If it's a somewhat maybe not great deal where there are slim margins if everything goes right, then I would not use it. I would look for a RE partner and share the spoils instead. They aren't called "hard" money loans for no reason. 

Also, HML's have requirements too. You said you don't have much money to start with and that you are looking to invest out of state. HML's have origination fees and points that you pay up front. Plus they are going to look at your experience and the deal itself. Even though they have a somewhat different outlook on lending, HML's won't lend to just anybody either.

Best thing would be to look up some HML's and talk to them about what you want to do and in what scenarios they would lend to you and what the up front fees are, how they pay out your loans, etc.

Here's a group I met a couple of years ago at a REI in Ft Worth, they seemed to be straight up and everyone there liked them.

http://www.emeralddolphinenterprises.com/

There's also these guys:

Scott Horne - http://hornerealestatelaw.com/

Milton Colgrove - http://thelawfirmmc.com/attorneys/

and Bryan Dunklin (I can't find his website)

Edit: Full disclosure, I haven't used any of them professionally but I've met them all and you'll see them around the REI clubs here in DFW. So I'm not recommending any of them but they seem to know their way around real estate law.

I was wondering about that myself :)

I'm only going to use the code on letters for now. But the code would be unique on each letter; letting me track the person and the actual marketing piece that got their attention.

I'm going to ask them to mention the code when calling me and then I can look it up on my spreadsheets

Hi everyone,

Wanted to get some feedback on an idea I was thinking about.

When I send out the letter to homeowners telling them that I buy houses I was also thinking about adding a line at the bottom saying that if they refer someone to me I will pay them $100 at closing and the person they refer to me will get $200 towards moving costs and then giving them a coupon code to give to that homeowner.

I'm wondering if anyone has tried this and whether it's a bad idea for some reason or if there is a better way of implementing it.

Thanks for your time

Marc, did you ever find one? I need one too