All Forum Posts by: Sean H.

Hi Wai. If I may ask, why are you opposed to having a property manager for the properties? What sort of advantages, less cost, do you see panning out?

I am not sure what it is like in other states, but in PA, water and sewer bills are lien-able. If the bills are in the tenants name, the water and sewage companies can not provide a status of the account, but they have no problem placing a lien for unpaid bills. So while I do include the water and sewer bills in the lease as the tenants responsibility, I have learned the hard way to keep them in my own name to prevent delinquencies.

Michael D., I own rentals in the Pittsburgh area and do charge tenants for their water. I am a small sample size for sure, but there are others who do it.

They are taking a healthy management fee as well, about 13%.

In both pro-forma's, they do not account for any vacancies or any maintenance to the property.

Not saying it is a rip off. I echo the others statements, that you are getting a property producing income on day 1.

I would however, look at those numbers with skepticism.

I meant my comment about saying no to the deal flat out or trying to negotiate as a real question, not rhetorical. I have a good chance at being wrong, but would like to hear what actual private lenders would say.

Brian, my next step is to put the package in front of potential lenders and see who wants to do the deal.

Steve, I feel that a lot of the paper work that the bank asks for is over the top and not really necessary for a lending decision. Has a bank ever came back to you and said "love everything aboit the project, but you need to change the verbage in your organizational minutes." My guess is probably not and frankly I hate tedious paper work, I was hoping that private lenders would agree with me. The consensus appears to side wither extraneous paper work so that's what I will provide.

Concerning my requests for favorable terms, I realize it is a stretch, but I figure start high on my side and see what they say. If a potential project came across your desk with those terms that had you at 65-70% arv, but were deffered interest and you were putting up 100% of funds, would you just say no, or negotiate to a middle ground?

Thanks Bill.

I am looking to put together packages for fix/flip loans. I would want the most favorable terms (them lending 100% of purchase and rehab, all interest payable upon my exit at closing). How should I present this offer to them?

So far, what I want to present to them:

- My LLC Operating Agreement
- A personal financial statement showing cash on hand
- Most recent 2 years tax returns for the LLC
- Offer for financing (including terms for the loan I am looking for listed above
- Copy of the property sales contract
- Scope of work
- Comps to show value
- Projected P/L for the project

What am I missing?

Whenever you present to a private lender, do you have a template package that you modify on a deal by deal basis? What is included? I am trying to put together a template that I can present to private lenders as deals become available. Something professional looking that I can change to suit each property rather easily. Does anybody use anything similar?

I use the tool within Hubspot to check, but the adwords tool is essentially the same.

It does no good to be ranked high for those keywords if no one is searching for them. If you were trying to sell your house quickly, what would you search for? Maybe I am off, but I would not search for "We buy houses (my location)". I could easily be wrong, that's why you have to see what people in your niche are searching for before you spend money on SEO.

How many searches per month are there for those keywords?

Interesting about the sect. 42 credits. Won't hijack the thread, will just do a search.

As for N/P, Michael asked a question earlier that I would like to revisit. What is the advantage of going the N/P route vs. a normal investor LLC/S-Corp? Perhaps I am not smart enough or well versed enough to be able to see what the benefits are, but it seems to me, paying yourself an ED salary or taking a draw from an LLC are about the same. Does it help with acquiring and financing properties? Reducing taxable income? Scaling to larger numbers?

I am all for innovative strategies, especially if it helps grow and scale profits. Please help me understand what I am missing here.