All Forum Posts by: Matt Skinner

Not sure when the PMI burns off

Lender will want to see a stable asset, 1.2 DCR, - credit score is probably a minor component,

Broker charges 1 pt and the 3rd party reports range from $5 to $15k depending on the size of asset.

Happy to give my lenders info - just don't bother him if your a tire-kicker.

FHA has a non-owner occupied product for larger complex's (minimum loan amount $1M)

We are in an FHA loan on a 31 unit in Arizona.

It is 80%LTV.

35 year fixed rate (at 3.5% + PMI)

35 year term.

... I know.  Incredible. 

Downside:  

• 9 year pre-payment penalty but is assumable.
  
• Takes about 5 months to close so it's best used for refinancing.
• Only allows distributions to the partners twice annually.

This debt instrument has actually changed our multifamily strategy.

We are tying up deals 'subject to' with a 20% down payment and then refinancing the project with the FHA product and in some cases actually pulling cash out.

My theory is that I want to borrow millions and millions of dollars at 3.5% (as long as it debt services + cash flow) and be sitting in a nice position 10 years from now.

Having long term low interest debt in ten years from now will make you look like a genius. 

Seeking ambitious person with a desire to learn real estate investing to apprentice as a Deal Maker.

We buy apartment buildings in Southern California and in Arizona as well as buy Development Projects all over the west coast including Newport, Bev Hills, the Valley, Oregon, Nevada, etc.

I am looking to hire one of each:

• Development Apprentice.
• Los Angeles Apartment Apprentice.
• Arizona Apartment Apprentice (you do not need to live or travel to Arizona- only be willing to learn the market).

I will teach you to cold call, underwrite, make offers, and process due diligence.

You will be given a list of prospective Targets (Owners of Properties that we want to buy) to call to make a full price offer on their property.

Some of the calls are 'cold' and some are very warm.

Get paid hourly ($9) as well as a healthy bonus structure based on your results.

We are not expecting you to close sales at this point, just successfully get the Target to agree to entertain an offer from us.

Work part time or full time.

You will have access to all of our internal training program - ideal for someone who wants to make being a commercial broker/investor a career.

For the right person there is a huge opportunity for growth and advancement. We will train you in sales, negotiation, deal structure, networking, and put you on a path to obtaining your real estate license (if you choose).

Please watch this video and then reply to Tony @ 12SRE. com with a short paragraph as to why you would be perfect for this position.

http://www.mattskinnerconsulting.com/ateam.html


Check out our other websites to get to know us better but do not contact us through these channels. If your paragraph is compelling we will contact you.

www.RealPeopleRealReturns.com

www.TwelvestoneCapital.com

www.MattSkinnerConsulting.com

http://losangeles.craigslist.org/sfv/sls/5053739360.html 

So here's the deal:

I have a 'subject to' deal negotiated with a Seller who's house is in North Carolina.  I have never purchased property in North Carolina so I am unfamiliar with the process there.

In CA I just have my seller notarize a grant deed and have my title guy file it at the County Recorders office and PRESTO!  I own it.

Does it work the same way in North Carolina?  I am getting mixed messages from real estate attorneys and real estate agents (big surprise) in the local market.

Please help.

Join a local Apartment Owners Association.  Volunteer to work their meetings for free if they wont let you join (because you are not an owner yet).

In my investment firm, we get lists of owners from title data or Costar. Then use the states (CA) Secretary of State website to find who formed the LLC or company that ownes them.

Then we use Intelius.com to search phone numbers and addresses of the actual owners.

We call them.  We mail them.  We door knock them. 

Our call metrics are about 20 contacts per 100.

We use the opener:  "Due to tax reasons I'm interested in buying a building in your area in the next 60 days.  Would you be interested in a full price offer on your building?" 

A couple of notes on this opening line:

1. Tax reasons imply's you have exchange money burning a hole in your pocket and you are motivated to buy something quick.  Sellers know that exchange money often pays a premium because of the motivation.  Obviously you don't have an exchange - but buying any asset can be for tax reasons.  Remember it's the implication, not a direct statement that gets the Seller to believe you can be taken advantage of.

2.  "Full Price" is a subjective term.  What you are willing to pay is your Full Price - but again, elicits desperation on your part without it being true.  

After you have gotten the Seller to acknowledge at least an interest in Selling - develop a relationship with them.  Don't be afraid to tell them this is your first time (just don't ever admit if you don't have funds).  Many older Sellers (men especially) remember what it was like to be young and ambitious and might take you under their wing in a mentor role.  This is a great opening for Seller Financing.  

We are hiring!

Work to Learn.

I am looking to hire a smart, ambitious apprentice for my investment firm in Valencia CA.  

Crappy pay to start.  Commissions and Bonuses available.  Unlimited training.

Twelvestone buys and operates cash flowing apartment complexes and development projects.  

I WILL TEACH YOU TO BE A DEAL MAKER.

If you are ready to take your real estate career to a whole new level I would like to talk to you.  

Full time or part time. 

Check us out at the websites below - then message me on BP or email me direct at [email protected]

http://realpeoplerealreturns.com/

http://www.meetup.com/clubinaction/events/22122932...

http://twelvestonecapital.com/

http://buildingbuyersclub.org/

We'd love to have you visit our club CiA (Club In Action) - 3rd Wednesday of the month.

The first half is like a shark tank - where people can pitch their deals for partners and/or to sell.

The second half is a mastermind.  Our members and guests bring in deals they are working on and we put them on the whiteboard for analysis and strategizing.  

http://www.meetup.com/clubinaction/events/22122932...

The biggest return on investment that I have ever made is investing in my own marketing.

#1.  Market for equity partners.

#2. Market for great deals (direct to seller / off market)

If you read The Art of the Deal - Donald Trump - the first deal he does is buy a foreclosed apartment complex with NO MONEY DOWN and then gets a partner to finance the repairs.

He makes $600k on that deal over three years and then what he does with the money is really interesting:

1. He moves to New York City (identified his target market) and rents a cheap apartment (he mentions he was embarrassed to even have girls over it was so bad).

2. He buys his way into the most elite Country Club in New York City (at the time) so he can network with high-net worth individuals and representatives of institutional capital. 

3. He puts up a retainer on the most feared real estate attorney in the City - to help him negotiate and tie up deals.

4. He contacts the owner of dilapidated property and gets an option to buy it with no money down.  He later flips this property for a huge profit.

5. He contacts the owner of another dilapidated property (a boarded up hotel) and ties that up with an option; negotiates tax credits from the City if he fixes it up; then raises private money (not his) to buy it and renovate it.  

thank you guys, for your interest.

I actually have nearly 60 hours of video of me traing my team that we are cataloging and putting on a Netflix-like video platform.

It will be available in the next month or so at DealMakersPlaybook.com

Hoping to establish national relationships with advanced deal makers to train and put deals together across the states. 

Thank you guys for inspiration. 

Most states do not license LLC's so you will probably need to form a corporation for your brokerage.

Your investment firm can be whatever you prefer for tax and/or financial reasons.

I am not a CPA and offer no tax planning advice but in general a C corp would need to pay you a salary or commission (which is taxed as income) and then the corp pays its own tax on profits, if any are left after payroll.  Corporate tax is relatively low if you're not doing over $10M/year.

The LLC, LP, and S corp are pass through entities so any profits that are made would be distributed through to the Members, Partners, or Share Holders (respectively) and taxed at each individual's income tax bracket.

Another thing you may want to keep in mind is that a lot of foreign governments do not recognize an LLC (yet) and therefore can cause unnecessary challenges if you are seeking foreign capital.