All Forum Posts by: Darrell Shepherd

$382k would make a great "starter home", huh?

My dad is up that way, pretty experienced in doing rehabs, we'll done a lot of 'em.  Sherrill Shepherd.  It wont let me post his number, but if you'll shoot me a PM I'll shoot it your way.  He's a retired engineer and has a good crew up that way and has run plenty of rehabs.  Better hurry, though, I'm working on moving him back to Georgia to run my jobs....

Hard money rejects 75% of their loans?  Not real hard money then, or a lot of people that don't know their numbers applying for them.

I've never heard of a 10% deposit requirement.  Sounds pretty steep.

Like has been said, your contract has a lot of outs, not sure what the bank will say on a finance contingency on a fire sale, they tend to like cash transactions when they are giving lots of equity away for a fast/easy sale.  

Personally I just like to sneak in a long *** due diligence period.  21 days or so should do it, and watch that date, I lost $8k because I tried to cancel last minute the last day and I couldn't get my agent on the phone in 2013.  Not fun.  Who is your lender?  You need to check them out pretty thoroughly, hard money lenders vary greatly based on how they fund their deals.  The vast majority of them are using other people's money so are beholden to their rules and their cash flow.  A true hard money lender is loaning on the property, not the individual so if your deal is straight the money should be there.  LOTS of "Hard Money" lenders that aren't true collateral lenders, though (meaning the asset, not the borrower, is what qualifies the loan).

Sounds like the profit might get too diluted, but I can bring the money and split some deals if it makes sense. Or I can broker some hard money.

haha, if you can figure out how to do the title of your post you could make millions teaching other people how to do it.  I've been at this 15 years and still go over time and over budget on just about every job.  Just gotta know thats part of the biz and plan for it.

Easy to find people to do it for less, but you're way better off paying pros to come in and bang it out in a day or two and do it right. I've ripped out and redone a lot of ****** tile work before I finally figured that one out.

Going rate around here is $5/ft on the floor and $7 on the wall.

I pay my guy 2 pts and 12%.  Kinda high in today's market, but I want to keep him happy.  I'm WAY more interested in having unlimited access to cash than squeezing every penny out of every deal.

Also, my deal is 100% funding, all monies up front, no payments, he gets paid when it sells.  I make up whatever few % I supposedly over pay him by being able to do way more deals with that structure.

That's for flips.  I personally wouldn't use private money for long term holds, but I'm not a buy and hold guy.  Not much advantage to private money for long term unless you are over leveraging them.

Happens plenty.  Like CJ said, get something in writing and make sure you know who he's marketed it to and for how much.  Gets pretty annoying when you see the same property from 5 different guys at 5 different prices.

A lease option is simply a lease agreement and an option agreement.  They are technically two different contracts.

Are you talking about buying on a lease option?  If the seller of a lease option dies, you still have your rights as a tenant according to the lease terms and your option is still valid, you can exercise it and pay the estate.

What you are describing is a sandwich lease option I think, which is where you lease the house from someone with an option to buy, then turn around a sell it the same way, but at higher dollars. Pretty risky in my opinion. I think a better way to do that kinda thing is to help the seller find a L/O tenant and collect a fee for putting them together.

That strategy worked well 3-4 years ago when houses were hard to sell and money loans were hard to come by.  The market has changed quite a bit since then in most areas.  Still can be done, of course, but not sure that's what I'd be focused on starting out.  You have to use strategies that fit current market conditions.  

Brian Gibbons on here teaches a lot on that sort of stuff, I'd start reading his posts if I were you.