All Forum Posts by: Mark Redmann

@James Wise

I love that post.  That's the one thing Patrick Heller kept on stressing during our conversation.  It's all about the relationship. 

1. Yes I am new to the game and have to start somewhere

2. Yes I'm a newb and will pay my dues

3. Price seems steep?  Well, like you said, refer to 1 + 2. @Brandon Turner says 50% of something is better than 100% of nothing. 

4. I enjoy making good relationships. I've always been good at that in my personal life. I'll use it to my advantage in REI!!!

You should definitely make some longer posts! I always find myself nodding my head while reading what you're writing. 

 I didn't ask, but I believe he answered the question anyway.  They have it set up in such a way that if my GC walks for whatever reason, they have access to people who can finish the job, rather than wait for me to find a new GC. They can step in immediately and finish the job and not wait. 

He also told me that they are using outside investors money to fund these deals.  They have a ton of money at the ready, but not enough deals. @Jay Hinrichs is it possible that they are giving the investors some pref return and DLP is just splitting the profits with me? or would that not makes sense to DLP? I am still learning all this stuff, sorry if that's a dopey question. Patrick Heller DID say they don't want to keep doing JV's with me. They'd rather me do one or two with them so that I can get up my own funds, then move to a HML with them.

@Jim Stoffey@Jay Hinrichs

I spoke with a Patrick Heller from DLP this afternoon. He is sending me a lot of info. One piece being some verifiable transactions DLP has been a part of. Their LLC they use for the JV product is "Good As New Ventures LLC" Any property that I would bring to them to fund needs to be assignable to this LLC.

Regarding the $795 "deposit"... it's now $895, it went up "just last week", but i get a sense that, as @Dev Horn stated, it's more to keep the yahoo's at bay. They will not collect the 800-900 fee until they KNOW that they will do the deal. Only when they have done the diligence on their end will you have to pay the commitment fee. 

The $50K spread isn't something they worry about.  Patrick Heller made it clear to me that as long as both parties (DLP and Myself) are happy doing the deal, then they will move forward, even if it's a smaller spread. He used a 20K spread as an example on the phone with me.  

As far as equity split, he mentioned 50-70%, even 80% to me. This would depend on how involved I am in the rehab process he said. 

DLP has a few companies that they use. The one they use for this JV thing is DLP construction. Mr. Heller told me that last year they did 135 deals thru DLP construction worth somewhere near $10 mil.

Patrick Heller did burst my bubble at the end of our conversation. They JV in a 75 mile radius from the home office, located in Bethlehem. The only place they WILL NOT JV is in my home city of Philly... go figure. something about taking too long for permits and inspections. The 75 mile radius equates to basically all of NJ and all of eastern PA up to above the poconos, but not in NY.

Hope this helps some people. Personally, I would definitely use them if I needed to, in order to get started flipping home. I wouldn't JV more than once, maybe twice though. I don't want to be splitting the profits all the time. After they JV with me, Patrick Heller recommended I go a Hard Money route with them @ 20% down, 14.99% interest and 4 pts on a 6 month loan, 6 pts on a 12 month loan.

 do you have contact info or something for the Philadelphia turnkey companies?  thanks!

definitely read all you can about wholesaling here.  Of course there's no substitute for actually doing it.  I would NEVER buy (get under contract) a house without seeing it first.  You need to accurately estimate repairs, meet the seller, and so on.  You want the seller to trust you.  Be a friend, be trustworthy, do what you say you're going to do. Honesty is the best when it comes to this. 

I'm using Podio. so far so good. I can add my other partners on it so that they can see everything I see. Any one of us can comment or input leads. I would recommend finding the REI lead entry app on Podio's app store. one of the guys on here created it and its simple to use.

My biggest question/concern is What stops these people from saying no to 3-4 deals and pocketing the 800$ 'commitment fee' Like @Jim Stoffey said, that could be $2400. I want to get references from other JV partners who have done this with DLP. I want to know what their experience was, how they felt after everything was done, and whatever else they'd like to tell me.

Since they say they are in NJ and PA, I have people in other areas who would gladly monitor the rehab while I put up the $800 commitment fee.  Seems like a pretty nice deal for both of us. No money out of their pockets, just time to monitor rehab, and then we would split the 50-60% between us.  The guy I'm thinking about doing this with isn't working at the moment.  It would be perfect for him.  And what's more, I trust him completely to handle this.  

@Jim Stoffey

 I think I am going to stop in their Poconos office tomorrow and see whats up. I happen to be at my parents house in the poconos today and tomorrow.  Apparently the CEO has been on TV (Fox news, CNBC, MSNBC) and is endorsed by some big names.  

Anything you want me to ask?  I am interested in this as well and have a deal in mind that a wholesaler sent me today. 

I'm interested in this as well. I'll be following this thread. It was nice to meet you last night. Too bad we didn't have the opportunity to talk much. 

Northern liberties and Fishtown have grown so much. You'll be hard pressed to find any deals in northern liberties.  In Fishtown there's some opportunity, but you have to be vigilant in finding and buying the deals.  Things move fast here.  There is a lot of new construction in both these areas.  The same can be said for Point Breeze.  Quickly changing, some new construction, have to be on the ball when it comes to deals here also. 

For multifamily, yes any university area will be good, expect to pay more though.  University City seems to be a hot spot near where I live in Graduate Hospital.  I can't speak on areas around Temple U or Temple Hospital, no experience here. Why don't you do some research on the area surrounding Baltimore Ave between UPenn and oh i don't know, 50th St?  52nd St? Those are larger houses and there might be some multifamily opportunity there. It might be a better alternative than the higher prices of University City

I love this. Your willing to help and make it a win win for everyone is definitely inspiring.