All Forum Posts by: Richard C.

Why ask for help and opinions if you are unwilling to listen?

10% is not enough. Everyone has told you that. If I am a private lender in California, and I can make 10%, PLUS 4 points up front, lending at 65% LTV, and have borrowers lining up at my door, why should I go with your project?

Are there other real estate investments that could yield more than 10% COC return? Absolutely! Tens of thousands of them!

Look at it this way.  What are you bringing to the project that an investor cannot get cheaper elsewhere?  The answer is the lead, on the the property that your landlord may be willing to sell you at a below market price.  Your husband as GC?  Why wouldn't an investor simply hire a GC, and end up paying for less while having complete control?

"We would like to do this project not as a 50/50 split between us and investor, but just as a straight interest rate of return of 10% for the investor. Did I answer that correctly?"  You answered it correctly, but Steve wasn't asking a question, he was giving you a suggestion.  Specifically, that an investor would not be interested in 10% interest, and that if you want to find the money, you are going to need to do something like what Steve suggested, and take a share of the eventual profit.  A share that will almost certainly be LESS than 50%, by the way.

Steve was suggesting that title searches on similar projects would reveal the names of the investors involved in those projects, and provide you with a list of people to approach.

Certainly raises the bar for certain other operations.

You say, "rude and discouraging."  I say,"direct and realistic."

There is such a thing as a market price, for anything. That is as true for loans as it is for the catch of the day at your local seafood place. And that price goes up as a deal gets riskier, but it doesn't really go down.

5% is 30 year fixed conventional loan territory, not risky spec build territory. Sorry, but it just is. Even if you were putting in 30% of the money, you should expect to be paying 10% or more on the remainder. Plus several points up front.

You're asking for the sea scallops for 99 cents a pound. It doesn't work like that.

To "play", you are going to need to ante up. Do you have any money to put up at all?

So you have no money of your own, don't own the existing property, don't own a home you can put up as collateral, and want to borrow a million dollars? At 7%?

I don't want to be mean, but there is no way in hell that is going to happen.

How many similar projects have you completed? How much experience as a GC does your husband have?

Oh, no, not toast!

David, seriously.  I'm becoming embarrassed for you.  You do not in fact know how financing real estate in entities works. You just don't. By claiming that Reantus taught you what you posted, you actually make Renatus look bad.

Are you really completely incapable of self reflection? Of admitting error? If your response was, "I may have misunderstood the training materials, I will have to review them" then that would reflect well on you and at least not reflect poorly on Renatus.

Your "defense" is counter-productive. Because it consists of nothing more than repeated assertions, not backed by data or experience, it is not at all convincing. In fact, half-baked answers have the effect of making Renatus look WORSE, not better.

For example, your responses on this thread reveal that you do not know how conventional mortgage limits and lender overlays work, that you do not know what a corporate entity does and does not do for you, vis-a-vis financing, and that you do not know the difference between conventional financing and portfolio lending. 

Responding with, in essence, "Yeah well these allegedly rich guys I pay to talk to me say nah, bro" does not enhance your position. At all. Not even a tiny bit.

I'm sure Grove appreciates you taking some of the negative attention off of him, though. Maybe he'll throw you a deal.

Listen to Rob. It could even be that these people are essentially, "mystery shoppers" working for a fair housing/civil rights/tenant's rights outfit.

You really need to figure out what your legal obligations are.

Last time I had a house for rent, advertised as not including any utilities, I was asked several times, "It's not electric heat, is it?"

It absolutely matters.

I think all these shows are fun.  They're mostly entertainment, though to me they have some value in showing the various finishes they use.

Some of the stuff is obviously scripted.  I remember one episode where supposedly in the one night between when they bought the house and when they started work, some "kids" had "a party" and trashed the place.  I've never seen such a pathetic effort by set guys to make it look like a bunch of kids had a party and trashed the place.  Very, very obviously all faked up.

Another was when Christina was helping do demo (wearing heels if I remember correctly) when she encountered a rat.  A white, fluffy, spotlessly clean rat.  Maybe that's how Hollywood rats are, looking like they just came from a pet store.  Here, they are nasty, gray and won't just stand around looking at the camera.

But they're fun, worth watching for the finishes, and besides, they help set your customer's expectations, so it is good to know what they are up to.

Plus Christina's legs.  Worth watching the show for that reason alone.