All Forum Posts by: Shafi Noss

I am looking for bird-doggers in Houston to identify properties in need of restoration from hurricane Beryl. A friend of mine would also like to hire people to knock doors for preforeclosures. If interested in either feel free to PM me. 

Got it. Most banks will allow something called mezzanine debt, so likely additional debt in the capital stack will not be a deal breaker. 

However, I suspect that no matter how you cut it what you're offering will be considered a security, even if it's a debt security. 

If this is the case, and all else equal, it may be better for you to structure the downpayment you're raising as equity instead of debt, extra liens are still less favorable to 1st position lender and make refinances more difficult. 

If you wanted to get around the bank requirements too but can't raise the full $10M, you could raise $5M and use a hard money lender. The lender might offer a better rate since the leverage is low, you are borrowing less so paying less, and can still skip the bank requirements on the purchase. I know lenders that will do this. 

Obviously there's more complexity and possibilities than a few forum posts will allow. 

 Oh ok, your post is tagged for Madison for some reason. 

Hi Mitch, it would be helpful to know how much you are thinking of raising and between how many people. 

If your objection is time, expense and compliance issues, it's not clear to me this alternative is less expensive or time consuming, and likely is even dicier on compliance. If it walks like a duck and all that. 

I'm also not sure what you mean by 'avoid bank requirements' and 'middle-man syndication'. Is your bank putting requirements on how you source your downpayment? If you are offering a secured promissory note, a bank would probably like that less than syndicated equity. Or are you trying to syndicate the entire capital stack? Knowing those details would help us evaluate more precisely. 

Hi Mae, are you in Madison as well? I have a stake in a general contracting company in Milwaukee. 

Will mean a less competitive landscape for landlords that do consult attorney's and follow the provisions. 

 No it is not. 

An acquaintance of mine owns a 130 acre tract of land with 17 acres of highland appraised for a little over $1M on Crystal beach near Houston. He is distressed and will sell at a discount in exchange for speed. If anyone is interested, or has a contact who is, please feel free to PM me. 

My strategy is to underwrite conservatively and then be pleasantly surprised, although miss more deals that way. 

You have my WA, I'll message you there.