All Forum Posts by: Chris Jackson

I see a note for sale for $500 online. The crime rate is HIGH and the registered offenders is 46 within one mile. The price is SO tempting. haha - Should I just stay away from this one? It's a 1st position NPN.

@Scott Carson so what are the most important factors to consider when you're evaluating a market to purchase assets in?  For example, do you mostly concern yourself with the city's appreciation rate, rental -vs- owner ratio, population increase the past year...? Thanks!

@Scott Carson thanks so much for that input.  I'll PM you my thoughts.

Hello BP!  As I'm researching and learning about Notes, I get more and more excited about the idea of being able to invest in other markets besides 'my own back yard'!  So I guess the question is, WHERE are the best cities to be keeping in mind (or the best states) for investing in Notes?  I understand that maybe around 20% (according to one big note investor I just heard recently) of your Note investments will inevitably go through foreclosure and I understand that foreclosure can take a lot longer in some states than others. So I am wondering which cities I should keep on my radar as I continue in my research, and maybe look through some of the online Note Auction sites.

What do you think?

Michael - could you talk a little about what a Master Lease is? I am looking at an 8plex myself, and am looking for some sort of creative way to get in since I do think have 20% down for my commercial loan.

Thanks!

@Mike Hanneman

Thanks for that.  You're right on the money that it can take a lot longer than one would expect to find a good deal to take down if you don't have a system in place yet (I don't).  I am thinking about one specific property that I am currently negotiating and also going to things like tax sales and sheriff sales that you need to have the cash beforehand in order to buy.

I'm negotiating an 8-plex in my area and the numbers are working and I'm pretty sure i'll be able to negotiate the seller a bit lower too, but I am just not sure how to continue negotiating since I don't have the 20% down the banks will want and the owner isn't sure he wants to do any owner financing. 

Earlier this year my good friend bought a house for $17K. He should easily be able to sell this house for $100K when he wants to sell. This was NOT a fixer-upper! He got it from a tax sale and moved right in with his family.  I can't even do that sort of amazing deal since I don't have that money in the bank. So those are the types of things rattling around in my head when I pose this sort of question on entities.

Hello BP world! So I am quickly realizing how much more scalable my investing will become when I get money partners involved. Can you guys give me some advice on basic pros and cons of different entities I might form so that I can raise capital for investing? Ideally I think I would like to have a bunch of investors putting their money into a pot, so to speak, that I can just pull from when I need it to buy a hot deal. I'd like to start ramping up the flipping side of my business, using the BRRR strategy to quickly refinance the property and put the money I drew back into the pot. My apologies if I'm being too vague for you to give me very specific advice. I am new to forming entities and so I might not have provided specific enough information for anybody to help me much.

I am still in negotiations about the place but I haven't gotten any funding yet. a local bank seems like a good option right now but I wouldn't mind seeing what you guys have to offer as well. 

this is becoming a weird twilight zone experience now! haha. I wouldn't say that is my model of business but I will try to work deals like that again whenever possible for sure. it was not a credit union actually, just a local bank. I have heard that credit unions can at times be better lenders than banks though.

the bank did want to see some money in the bank which I don't have much of. haha. they also looked at retirement accounts as well. I am not too sure what you mean by servicing the debt unless you just mean paying it. I made sure the deal cash flowed even with the LOC payments. since everything was in-house I am able to refinance as soon as I want to! another win!