All Forum Posts by: Scott Brown

@David 

@David M.. Hi David.  The borrower has a cash business, not taxes filed for the last year, 550 credit score.  All of which sounds horrible and not allowing me to get a MLO to pre-approve him.  I don't do traditional lending...I guess I'm not sure of the Dodd-Frank exemptions you are referring to. 

When you dig into the applicant's story it makes a lot of sense to me.  

-Cash business, he and his girlfriend are Hispanic...they have NO debt and make good money. (Any applicant that has NO DEBT, owns a business and has cash, in my opinion, is a much better applicant than someone that has a W2 Job, debt and a high credit score...it's backward...when they lose the job they default on the debt and the score drops like a rock...not this applicant...he loses a client he get a new one.) 

-No taxes - makes sense if you run a cash business ( Did not say I agree...I file and pay my taxes each year) but I understand what's going on.

550 Score - Applicant has the same name as his dad...the Hispanic is very big on family values which I like a lot, they take care of their own. His dad used his credit then passed away, he needs to fix this but it was not his debt perse.  Also, he has some small medical bills which are understandable.  All of which can be fixed over 6-12 months. 

I'd love to hear about the exemptions you are referring to with Dodd-Frank. 

Me too...I think I have a solution...wanting to see if there any other input before I run my idea past my attorney. 

I have a property that I NEED TO SELLER FINANCE.  I don't want to be the landlord due to the age of the property and potential city landlord requirements.  The home is not in bad condition it's just that it's 100 yrs old and I refuse to deal with the city as a landlord...(Just had to do 10k in Daytona Beach on a rental NEVER AGAIN) ...Having dealt with this and the nightmare I need to seller finance the home vs renting it.  

That said, I ran ads and talked to 40 people, I picked the one that hands down had the best ability to pay the monthly payment.  The potential new buyer owns a tattoo parlor and makes about $100,000 a year.  ( I reviewed all of his payment receipts) The issue is it's all cash and it's not in a bank to prove he has the money.   I get it that he's not playing by the rules but he has NO DEBT, owns his own business and makes good money, so how do I qualify him as NON-QMbuyer.   (No taxes were filed) 

I not looking for "You can't do this". I'm looking for "How do I do this", this potential buyer is the best applicant and should be able to find a compliant way to get him Dodd-Frank compliant.   

So what options do we have to "Prove ability to Repay" 
Thanks in advance for the replies. 

Paid off 4 Plex in Princeton Indiana. (47,000 population and 30 mins to Evansville which is 118,000 population)  

The property is worth between $250K to $300K

The loan request is $100K. Which means the loan to value is 30-40%. Very safe and secure position for any private money investor.

With the temporary virus shut down, the borrower owns a bar and restaurant that has been shut down and needs capital to ride out the virus. The quickest way to get the capital they need is through the paid off real estate they own. 

This property is paid off they need capital to get them through the institutional capital freeze/ lockdown. (Wall Street money is a state of panic and would normally say yes all day long. hashtag#loan hashtag#realestate hashtag#privatemoney hashtag#bridgeloans hashtag#cashout hashtag#commercialmortgages hashtag#privatelending hashtag#commercialmortgage hashtag#propertyfinance hashtag#investmentproperty )

Reach out if you are interested.
Scott Brown

480-221-7172

Has to be one of my most favorite books of all time! Commentary of how the middle class and the poor are not going to make it mostly due to the things in life that FAKE them out!

His last chapter are you an Eagle or a Chicken is super good.

Are you an Eagle or a Chicken?

@Ashley Rothacker

Not me! Most businesses fail! Google it...and for good reason...under capitalized...and the truth is most peoples friends and family don’t think they will succeed and are super negative. Then when it fails you will be in the NFL club! No friends left. It’s not a bad thing tho...now you have something to prove!

I failed at a few things but discovered most millionaires have something to do with real estate. Great place to fail forward.

There are lots of deals you can do with little or no money. I personally got my money to invest wholesaling. It can be a grind but you learn a ton and the truth be told is if you develop the skills to find a good deal its just a matter of time for your capital to grow to where you can make other plays.

All the best!

@Danny Mak

I agree with many others. Hire a pro!

It’s called the 10,000 hour rule. You can’t be an expert or even good at everything. A good contractor has the 10,000 hours of experience that you don’t.

(Read the book Tipping Point)

@Michael Lowe

Truth be told real estate can be a risky investment. I love the quote “it’s not good enough to want something you’ve got to know HOW to get it” I’ll be the fist to say I’ve lost my share of money on deals for sure and if that was all you heard you’d say pass.

But...my 1st million was made wholesaling low priced homes, 2nd million was in equity of seller financed single family homes and

My 3rd has come from doing loans both as a broker and as an investor which I call Flip Your Capital which is a debt/equity play. Risky? Yep!

The other thought I’d tell you to consider is about 80% of Americans are not going to be prepared for retirement. According to Fidelity Investments the average 65 yr old has less than $200k at retirement. To me that is a guaranteed way to fail...I’d rather take the risk on real estate deals and at least I have a chance to better my position.

All the best,

I'd Flip Your Capital...be the bank to a fix and flip investor in your market. You provide the capital and they provide the deal. You make 12% on your money plus 50% of the deal profit. Took me a minute (about 20 fundings) to get our agreement where it protected me the way I wanted, but once I got that lined out it was go time. If you do two deals a year with the same capital you can make 30-50% ROI. (And if you use leverage (get a loan) your ROI can easily break 100% a year. Which means you "can" start flipping (Doubling) your capital every 12 to 24 months. And if they default, well the way we structure the deal you just got a good flip property to pay a contractor to finish.

Reach out if you'd like to have a copy of the steps/26 questions I ask a borrower to underwrite a deal/borrower before I fund it. 

All the best, 

• 30K Private Money Buy And Hold Lender Wanted - Camden NJ
• Looking for a Private Money Lender to fund this sweet deal!
  Home is VERY CLEAN...you will be impressed with this property!
• This is a Cash-out refinance
  
• 30 year fixed if possible, Client is willing to do short term loan as well (3-5 years) 
  
• Appraised Value: $80k - (we have the appraisal)
  
• Mortgage: $30k
  
• Taxes: $1200
  
• Insurance: $700
  
• Rent: $1075/month (Rented with a section 8 tenant) 
  
• Credit: 680
  
• House Purchased on: 8/28/2019
  
• Purchase Price: $10k
  
• Renovation cost: $13k
  
• Cash proceeds will be used toward another rehab on another investment property.

Text me if you are interested in funding this deal
480-221-7172