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All Forum Posts by: Patrick Sears

Patrick Sears has started 49 posts and replied 129 times.

Post: Best accounting software for note business

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Hello,

Just curious as to what everyone is using for their note buying/selling/originating business?  I'm currently using Quickbooks 2007 for my rentals, and have been thinking of updating to the newer version to go along with my new laptop.  However, I see nothing but bad reviews for the latest QB version, and the other brands out there are seem either to be not any better or ridiculously expensive.

Any thoughts or recommendations?

Post: Mining for Seller Carry Back Notes

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Hi @Wayne Snell, I'm thinking of switching from fix and rent to fix and sell on terms like you.  You said you are selling with yields at 7.5 to 14%.  I assume that is the total return to your buyer taking into account the note's face interest rate plus a discount on the note balance?  If so, that makes my proposed business plan very workable....

Are you seeing large demand at that return?  Also, what price point are you specializing in and what rate are you originating your loans at typically?

Thanks!

Post: Hotel cap rates

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Jimmy, regarding "losing your shirt", you can say that about any business or investment.  But, assuming the business model isn't inherently flawed, with the right amount of hard work, knowledge and working capital, you should be able to survive and even thrive.  

What I'm talking about wanting to do sounds like what you are doing.  Buying hotels and turning them around-is that what you do?

Post: Hotel cap rates

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Great reply, Derek.  Thanks!

I know these 3rd party companies can take a hotel given to them by a buyer, reposition it, and then even manage it for you, creating a semi-absentee owner investment.  And I'm sure they would do it better than me. And I'm thinking a brand flag would look favorably upon it for my first deal, at least. So would a lender.

The big question though is, if I bought the place then hired someone to both reposition AND manage the place, would there be any "meat left on the bone" to be profitable? How profitable?

Post: Hotel cap rates

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Jimmy (or anyone else), any ideas on good books or resources on how to buy hotels right, fix them up, turn them around and MAKE SOME MONEY?!?!

I read online bios on industry pros that started with one hotel and now run management/investment companies with 30 hotels across 9 nine states, etc.  How do they actually make the trip from point A to point B?  Where does the money come from? What is the process?

Books I see on Amazon seem to focus more on operations, accounting and customer service. Not really much on investing or value add.

I've taken a look at the online certificate offerings from Cornell; they have some classes that seem to deal with investing in and valuing properties.

Tons of info on apartments out there, very little on the hotel business.  

Any thoughts?

Post: Selling Homes to Investors on Terms

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Thanks Ahmed for that! I am going to look into that more for Virginia, as I think the land contract model would be more flexible and give me more protection in a default situation.

Post: Selling Homes to Investors on Terms

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

That is awesome, Jeff!  That sounds exactly like the modus operandi that the author of this ebook I read on the subject called "My Life & 1000 Houses: The Art of Owner Financing" does.  

I don't know what the economy is like where you live in Michigan, but how much demand do you get for these properties?  How long does it take for you to unload them and how many have you done?  What are the price points?

Post: Selling Homes to Investors on Terms

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Thanks everyone for all of the great replies.  

I have briefly looked into the requirements to become an RMLO in Virginia.  Wondering if it might be worth it if I were to really get into this and start selling to everyone, not just investors.  I have tried Googling "RMLO Richmond Virginia" to see if I could use one here, but nothing really comes up.  Any ideas on how much they charge?

Jeff, on the house you just bought specifically to sell to an investor; did you fix it up first or just sell as-is?  What were the terms and how much down did you require?

Thanks!

Post: Selling Homes to Investors on Terms

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Hello,

I was wondering what y'all thought about paying all cash for low-end fixers, NOT fixing them up, and then offering to sell them on terms to local investors looking to fix and flip or fix and rent?  Trying to get away from the rental/landlord thing...

Some thoughts:

  • Example: Buy a house for 20k-40k; sell to investor for $5000 down, 12% int, 240 month amort with 3-5 year balloon?  These types of homes around here will rent for $800-$1100 all day long depending upon # of bedrooms
  • Season for 6-12 months then sell either the whole note or a front-end partial to a note buyer
    • What would the discounts be for either scenario? Recourse vs. Non-recourse?  Would there be a strong market for these notes?
    • If I sold a front-end partial, would the note buyer get put on the title as a 1st position lien holder?
    • Would it make things easier if I tried to structure this as a land contract/contract for deed to my investor/buyer?
  • Sell to investors with LLC's only to avoid Dodd-Frank issues
    • Or get my mortgage origination licensing and sell to everyone? 
    • Can I make decent money originating loans for other investors?

I've read a couple of ebooks on the subject; they are ok but not exactly college-level reading, at least not from a finance perspective.

Would it be realistic to turn this into a full-time business and build a 100+ note portfolio of these things?

Thanks!

Post: Richmond Virgnia area RMLO

Patrick SearsPosted
  • Midlothian, VA
  • Posts 130
  • Votes 17

Hello,

Anyone know of any RMLO's in the Richmond. VA area? Google isn't pulling up any.

Thinking about trying out the flipping with seller financing thing.  Anyone having any success with that business model?

Thanks!