All Forum Posts by: Scott D Burrows

I would second @Keith Radke and @Ned Carey opinion on this matter. 

Definitely makes sense to go to a local meetup with deals and see what the response is. More than likely, those people are in the "trenches" every day and are VERY in tune with the local market and will know if it is truly a good deal or not. 

Regarding strategy, I would assume the most important part is getting to the owner before others do, and also finding out how you can help them by listening first and not just throwing out the first number that makes sense. 

Also, @Chris Mason lives in Cali and I'm sure can let you know if you have good deals, if you throw some to his DM.

Good Luck, 

Scott

@Jeremy Bohnett

From what I understand and through the thousands of posts on BP regarding issues similar to this, I would feel safe to say that you are ok to go ahead with getting loans in both of your names and then transferring to LLC. To me, this feels like an @Andrew Postell question- he is the EXPERT in this space. 

Seasoning is TYPICALLY but not ALWAYS 6-months to 1-year.

Securing a conventional loan under an LLC is not recommended. Will be much more headache than what it's worth, especially if you are just starting out. Commercial or private lenders would possibly be able to do this, but you don't want terms like that right out of the gate.

Again, another thing that you might do is find a lender that is small (<10 locations in your state) and find out if they do commercial loans (not to use yet but to start building a relationship that can transition into their commercial department if needed down the line).

Anyways, good luck with everything. Hopefully, I was able to shed some light on your question. Again, Andrew is the man with the technical sides of your question. 

Good Luck,

Scott

@Ryan Baker

I agree with what @Ned Carey posted regarding coming to terms that work for both of you.

For example, what he is doing is basically syndicating your deal. Some example of terms I have heard of is 8-10% with a portion of the profit being split between both parties at the end of the deal (if you end up flipping any of them), if that makes any sense. 

As far as payback, if you were borrowing from a hard money lender, it would start from the first month, just like a normal loan (if it works better for you, you could structure an interest-only payback, where you wouldn't be paying back principal, unless you had the cash flow to do so). Obviously,  just look at the numbers and see what would work for you.

There are a million ways to work a deal, but keep in mind that you would like this to be a long-term relationship, so as Ned said, make sure the terms are good for both parties or a "win-win". 

Feel free to connect if you have any other questions or need any help.

Good Luck,

Scott

@Alex Scaffold

Indeed, indeed :) lol

Good luck and feel free to connect. Always willing to help in any way that I can.

I am a 100% believer that if you put good out, it will come back. 

-Good Luck

Scott

@Joe T.

I have properties mostly in the Indianapolis area.

Flip (private, Hard Money, whatever term you'd like to use) lenders usually specialize in short-term loans with a little easier approval processes, they usually sell the loans to different private brokerages that look for high-risk, high-return type products. Usually, they will have a fairly high interest rate on the short term stuff. For example, if its a 10% rate over a year (APR-Annual Percentage Rate) and you only have it out for six months (you would only have paid 5% interest on the loan, effectively).

Side note: 

Be careful with hard money lenders.... a lot of them are a little "slim-shady" :) In all seriousness, there a lot of people that don't operate in a method that is actually helpful to business, but rather prey on uninformed people who are just getting started, which is why I recommend referrals as often as I can. Once you get more experience and knowledge about what's available, then I'd recommend branching out and really calling around, just be EXTREMELY CAREFUL at first. 

If you need any advice, please feel free to reach out. 

Btw, I would recommend getting some business credit cards (Chase Ink, AMEX Business)-reason I recommend business cards is that they report under your business name and not your personal credit profile (which is something I didn't realize until later (don't want to be maxing out your available credit, good way to destroy a credit score).

Good Luck! 

Scott 

@Kizzy Robb

Highly suggest you go with what @Andrew Postell mentioned. I did not know to ask for a line of credit specifically, so I definitely learned something new. Unfortunately, a lot of banks have different policies, but going with ones that have a small amount of locations across your area will be the best bet.

@Ray Johnson  

Great advice by Ray, I will actually be checking this out myself. 

Both guys gave great advice and I recommend going this route, if you are set on a line of credit.

I do have another company to recommend if you are looking for a more long-term line of credit. RCD Capital is a company I have used and they actually do fairly large lines of credit in the $1MM and $3MM range. Banker I work with there is Jonathan Surak, so just ask for him and he should be able to help you.

Good Luck with Everything!

Scott

@Nelly R.

Good advice from @Stephen Kappre regarding the HELOC. If this is your option, this will be your best strategy to go with by far (most of them have really low introductory APR's). Just make sure you can either pay off or are aware of what the high-end rate will be when the intro period is over.

-Scott

@Nelly R.

Another option could be something called a homestyle loan, depending on how much works is going to be done and what you are going to be doing with the property.

I have used personal loans before. Depending on what you are planning to do with property, you might not be too bad using a personal loan. I have a personal loan out with SunTrust Bank, using their division called Light Stream. Approval took around 3 days and you can pick your term, so it's not a terrible deal. However, you will be looking at rates in the teens (11-13%). My loan is for three years at 11% for $30K. 

Also, you could go the credit card, and then convert it into payment form using a company called PLASTIQ. You can actually send checks to someone with your credit card (2.5-3% fee I believe). Another option, if you wanted to go that route. Best chances of getting a high-limit 0% card would be going through Capital One Spark, Chase Ink or AMEX Business (do this on separate days and start with Capital One if you are going for a high limit). Do not use any of the amount before applying a few days down the road for the rest (Chase Ink and AMEX will not go against your personal credit outstanding).  If you have a business name you will use that to apply.

Let me know if you need anything else. 

Good Luck,

Scott 

@Joe T.

Find a lender that can lend to you in whatever state you are in (meaning they need to be licensed in all states or work for a bank that is. I have worked personally with @Diana Muresan , she should be able to help you with what you are asking. 

Another great lender on here is @Andrew Postell (extremely knowledgeable) and @Chris Mason (if you're investing in the Cali area).

Also, if you need any lenders for flips, another good guy that I have used frequently is Jonathan Surak from RCD Capital. Solid company and he is an investor himself, so definitely gets the ins and outs. 

As a side note:

Be careful with out-of-state investing, investing in your own state is already difficult enough. Highly recommend that you work with someone who is already doing out of state investing to make sure that you can shorten your learning curve. If you do figure out a good system for it, please feel free to share. I would love to add another weapon to my arsenal. Have a great day! 

Good Luck,

Scott

@Baxter Richardson

Check with @Chris Mason he will know if it's possible or not, or what angle to work.

Also, he is in Oakland, so he should be able to lend to you. In addition, he is always on here helping people, so that is an asset to have a lender that is willing to help for no other reason then to help investors like us. 

If you need to brainstorm with any other ideas, feel free to reach out, always happy to help. 

Good Luck,

Scott