All Forum Posts by: Account Closed

Commercial or residential - it does not matter.

Your credit is a problem. Assume that you can not do deals in your name or where you will appear on the title. Lenders will not work with you as the liens can be senior to their position.

A few suggestions and this applies to all types of RE.

Focus on finding deals for others and get a piece of the pie but do not go on title.

You can set up an LLC or otherwise to do deals. Granted the IRS can make a claim on the LLC. An new LLC will still depend on your credit file. Over time the LLC might be able to borrow in its name but most lenders will still want to know the credit background of any LLC members who have a significant share.

If you are married or have a family member who you trust and who is not also under the IRS liens you can do deals in their name. Risky but you likely know the drill there.

If you did some large deals you might be able to deal with the liens. Hence there is room to believe that you can grow your way out of the situation.

I spent some time with a Chicago investor who has IRS liens and yet he was able to some some commercial deals. Mostly fringe things when he wanted full control. Otherwise he tended to flip deals or take passive stakes that were not held in his name.

Two things.

1. The process for how you get paid tends to fall out based on how you are setting up the deal. If you want to sell the contract you can charge for the contract. When you get paid is not specific and is generally based on what the two of you agree.

2. If you use a different process (double close for example) you are not selling your position in the contract. You are selling the property.

So, the mechanics for how you get paid will tend to line up with the legal requirements or the way the deal has been structured.

Why does the above matter? Second point.

How and why will greatly depend on what is taking place end to end. Many lenders will not be happy to loan a retail buyer the funds if there is someone in the middle. They want to see the seller on title when they review the documents during underwriting. Other times the end buyer is an investor who is paying cash so they might just want to buy your contract and then have title transfer directly form the seller to them without you being in the middle.

Different strategies work in different markets. You also have to adjust over time as the market changes.

One investor while flip X deals before holding one as a rental. They are using some of the profits from the flip to plow into the rental. Over time they will build up a number of rentals so they have income even if they stop flipping.

Another investor will find a partner so that someone else puts up the cash for the deals the first investor finds.

Lots of variations depending on what you want to do and what is the right strategy for a specific market.

O/T - Could you update your profile so it works with the new BP system?

I was curious about your RE background so I clicked on the profile button. An error message is returned.

Good alternative when it works.

Helping a borrower qualify can work well. It would lower the payment for the borrower and get the lender 100%.

Granted this borrower is below the minimum for most loan programs.

Michael,

You noted that it is $10 to set up.

What is the fee each time you want access (or want to allow access) to your account?

Thanks in advance

Ken,

Thanks for sharing the details. It helps people to see the type of deal.

Your deal size can work against you. Some private lenders and commercial finance companies will want a higher minimum.

A bit off topic but something you should be working on is getting a line of credit (not a HELOC) set up with a local bank. It takes time and the tend not to want to do much at the start. If you start early then they can get to know you. Likely you will be turned down for a while until you have a decent track record.

Once you have a LOC you will find that they are very dependable when you have a deal that fits their criteria. It will lower your cost of funding. You should continue to use private sources in addition as you never know when a bank manager will changes or other things. You also will have some points where you just find more deals at the same time than any one source will fund.

Good hunting. :shoot:

Toby,

Your best estimates will be from local engineering firms and others who do the work in the area.

Toby,

Reasonable idea.

One constrain is the ability for the lenders to negotiate. Some of the loans that have been resold end up in packages where little flexibility is provided. Or the lender sold off the credit risk and a condition of the credit swap restricts what can done when it comes to loan term modifications.

The Sec of the Treasury was highlighting this on CNBC a few weeks back.

That said some lenders do control their loans so they will strike a bargain.

Josh,

:wowie:

You have the oddest way of saying thanks. Multiple places on the site request feedback, suggestions and bug reports. I figured I was doing my part given the published request. Sorry if I am confused. I was trying to say how the site works for me. Similar to how user feedback is collected to see if the site is being used the way the designers expected.

I was not complaining or saying that you were doing a bad job. Nothing personal at all.

As you noted that you were stunned let me try to clear the air.

I did not ask for anything to be done on any particular timeline. Just capturing ideas as and when I think of them. Use the ideas you like. Schedule how you want. I am not making any demands, period.

If you feel pressure it is not from me.

You claim that you have a small team and a tiny budget. I am sure you do. No reason to doubt you.

On my side there is only me and I get paid zero for my contributions. I am giving back to the community and you happen to be hosting the site. You likely benefit more than I will given it is your site and I am contributing for free. That works for me so I am not complaining if you make a buck.

Lets move forward and to continued growth in the community.

:superman: