All Forum Posts by: Scott Rose

I'm trying this strategy now.  Have already let a few properties slip by as it is taking some time to find a partner like this.  Any recommendations?  Family/friends are out and have not been able to find a reputable club to go to.  Know it will take some time to build trust.

Anyone have any experience with Scala Funding or Michael Carabini?

Jay, let me know when you plan to be in town. Hopefully I'm not traveling at that time.

@Justin Larese

Didn't even consider what the agent could dig up.  I've been checking online through the local utility records (without luck) but adding on about 10% to some expenses to help ensure I don't underestimate things.  Also in contact with a local PM who is familiar with the area.  I'm also planning on using Estoppel Agreements to get some info direct from the tenants, but I'm finding out many PMs aren't familiar with them.  Was going to verify some other details that may not be in the leases through those.  I was able to verify the roof was done in 2015, but no info (yet) on furnace, etc. The more due diligence I have done, the more I am seeing this only working by utilizing seller financing (which they have already stated they are  not interested in).  Time may change that.

Unfortunately, already had some "experience" with gurus - they like to come to Hawaii (for some reason). I have been spending most of my time evaluating properties in the mainland due to the high cost of things here. Maybe I should look more local for a bit. Connected with a lot of people on island through BP, but haven't had a chance to meet in person yet. I know there are opportunities here, just a bit overwhelmed with the intimidation. Thinking that meeting some local HML face to face will help my learning curve. Thanks again @Jay Hinrichs for the comments.  Let me know when you get a chance to come out.  Definitely owe you a Mai Tai for the advice and education.

@Jay Hinrichs - you can imagine how much headache you have saved me!!!!  Excited to keep learning through the community. Rather it be via a Forum than my bank account.

Thanks, @Sam Shueh.

The $400k turned out to be bogus numbers so will need to run them again with a different lending source.  Should have been a red flag right away.

From the expenses perspective, due to poor management, I've had to try and interpret some things myself based on what was reported via their 2016 & 2017 taxes.

Cleaning/maintenance: 2016 ($1855), 2017 ($1247)

Utilities: 2016 ($6568), 2017 ($6060).  Only 2017 has it broken out by type, but that was received from owner records (shoe box file cabinet), which shows water ($3615), Electric ($1746, for water heater and laundry) and garbage ($699).  Each unit "supposedly" is metered and pays their own electric.

Working to get a local rep to walk the property, as this is not in Hawaii, to verify some details. 

Thanks for the questions.  Once I get details from a different lender, I will most likely repost, unless the numbers are just awful.

Thanks again @Jay Hinrichs. Really appreciate the details provided instead of a simple "stay away" or "run" comment. Knowing what is/should be normal helps not get back into the back/forth down another rabbit hole. Been looking through the HML via the Bigger Pockets resources also, but never know if my inquiry opens the flood gates for other entities to reach out to me directly to really know who is legit.

Thanks @Jay Hinrichs.  That's what I was feeling, but wanted to make sure I wasn't missing something. 

Anyone have experience with Pinecrest Capital LLC and John Remington? I've searched them online, and came across a LinkedIn profile - which states the company has been in business since 2004, but it only shows that his "experience" is 1 month (started Jan 2019) but the post says he is the owner. Thinking another scam. More of a hard Money Lender scenario, but with Private Money characteristics. 100% financing (including rehab), 5%, 6mos - 25 years terms (6 month deferment on payments) and $1520 up front for origination fees and insurance. Requires submittal of property proposal.