All Forum Posts by: John Sherron

Hey BP Family, I just recently came across a list of private money lenders across the nation and was wondering how should I approach the ones that interest me? Im a newbie, looking to start buying homes in a different state than where I live. I have no team (realtors, pm, etc..) as of yet, but im wondering what steps I should take starting out, especially with having this list? Put yourself in my shoes, how would you go about this list of private money lenders, knowing that's all you have available at the moment? Thanks in advance!

Hey BP family, I've been M.I.A. for several months from BP, in order to focus my attention on building up more capital to hopefully expand my investment options and opportunities. I finally accepted the reality that to increase my chances of having a highly probable real estate investment business I need capital, the more the better (at least from my experiences). I have tried and tried all the short cuts, some have worked well for me in the past but ultimately they all have failed. Now, I think im on the right path and im proud to say my investment fund is finally reaching my goal. My fiancè and I have decided Indianapolis, would be perfect to start our investment journey and look forward to the adventure. Now, enough about me lets get to the real reason im posting. The Question: This question goes to all the RE investors who have consistently invested in real estate for a minimum of 5 to 10 years, especially those whose real estate business survived the last recession. This is a multi-part question. Question: If you could start over with a clean slate, with all your current knowledge from all your wins and losses in real estate investing: A. What steps would you take first before searching, acquiring, or buying your first Real Estate property? ~If books are apart of your answer please list the name of the book(s). B. How much personal capital would you want saved to get started with investing in Real Estate and why? C. With our current economy, what strategy(ies) would you start with to advance your RE business in the CORRECT way to capitalize on the best returns in the least amount of time? What would this strategy be and why would it benefit in our current economy over others? D. What people would you absolutely have to hire for your dream team starting out in Real Estate and where would you seek out the most qualified people? (ie: RE attorney, Property manager) Anything else you would like to add that is relevant to the subject, by all means feel free to do so! Thanks, and I look forward to reading some of your answers!

@Joe Villeneuve Great answer Joe! My question to that response is... What ways or methods would you go about in finding and locking down private money for your deals? Would you find the properties first or the money? Where would you seek out the private money and how would you approach them? The reason I have decided to save more capital is because I havent been able to find private money that would work with me. Either cause Im new with little experience or maybe because my approach may be off. Either way I really need to acquire the knowledge or no how on attracting these private money lenders. Thanks so much for your answers, I really appreciate your responses.

Hey BP family, I've been M.I.A. for several months from BP, in order to focus my attention to building up more capital to hopefully expand my investment options and opportunities. 

I finally accepted the reality that to increase my chances of having a highly probable real estate investment business I need capital, the more the better. 

I have tried and tried all the short cuts, some have worked well for me in the past but ultimately they all have failed. 

Now, I think im on the right path and im proud to say my investment fund has finally crept over the 5-figure threshold and growing.

My fiancè and I have decided Indianapolis, would be perfect to start our investment journey and look forward to the adventure.

Now, enough about me lets get to the real reason im posting.

The Question:

This question goes to all the RE investors who have consistently invested in real estate for more than 5 years, especially those whose real estate business survived the last recession. This is a multi-part question.

Question:

If you could start over with a clean slate, with all your current knowledge from all your wins and losses in real estate investing: 

A. What steps would you take first before searching, acquiring, or buying your first Real Estate property? ~If books are apart of your answer please list the name of the book(s).

B. How much personal capital would you want saved to get started with investing in Real Estate and why? 

C. With our current economy, what strategy would you start with to advance your RE business in the CORRECT way to capitalize on the best returns in the least amount of time? What would this strategy be and why would it benefit in our current economy over others?

D. What people would you absolutely have to hire for your dream team starting out in Real Estate and where would you seek out the most qualified people? (ie: RE attorney, Property manager)

Anything else you would like to add that is relevant to the subject, by all means feel free to do so!

Thanks, and I look forward to reading some of your answers!

Hey BP family, I've been M.I.A. for several months from BP, in order to focus my attention to building up more capital to hopefully expand my investment options and opportunities.

I finally accepted the reality that to increase my chances of having a highly probable real estate investment business I need capital, the more the better.

I have tried and tried all the short cuts, some have worked well for me in the past but ultimately they all have failed.

Now, I think im on the right path and im proud to say my investment fund has finally crept over the 5-figure threshold and growing.

My fiancè and I have decided Indianapolis, would be perfect to start our investment journey and look forward to the adventure.

Now, enough about me lets get to the real reason im posting.

The Question:

This question goes to all the RE investors who have consistently invested in real estate for more than 5 years, especially those whose real estate business survived the last recession. This is a multi-part question.

Question:

If you could start over with a clean slate, with all your current knowledge from all your wins and losses in real estate investing:

A. What steps would you take first before searching, acquiring, or buying your first Real Estate property? ~If books are apart of your answer please list the name of the book(s).

B. How much personal capital would you want saved to get started with investing in Real Estate and why?

C. With our current economy, what strategy would you start with to advance your RE business in the CORRECT way to capitalize on the best returns in the least amount of time? What would this strategy be and why would it benefit in our current economy over others?

D. What people would you absolutely have to hire for your dream team starting out in Real Estate and where would you seek out the most qualified people? (ie: RE attorney, Property manager)

Anything else you would like to add that is relevant to the subject, by all means feel free to do so!

Thanks, and I look forward to reading some of your answers!

Hey Adam, Im curious, can you state what kind of troubles you foresee? Maybe you can help me eliminate some of those troubles. Thanks!

Thanks John for your post, that was some great info. So let me get this right, it sounds like 3 phases: 1. The rule of thumb phase 2. The analyze phase 3. The due diligence phase If the property get past phase 2 thats when I would put the property under contract if the numbers checkout and then proceed to phase 3? Thank you again for the detailed information. I greatly appreciate it!

Hey Thomas, this is the NOI the owners gave me.

The rents are:

1. $850

2. $850

3. $875

Total: $2575.00

Other expenses:

Property management: $257.50/mth

Insurance: $123.67/mth

Tax: $296.90/mth

Total: $678.07

I understand there are other expenses to account for.

So if the information is of little value, what info should I be focused on?

Okay, I have been trying to structure this deal the right way the first time. I am a newbie and I'm looking at a 3 property deal and hope to get some good advice from the pros on how to structure it and go about the financing. I just received the comps back from my realtor and I put the rest of the details below. Keep in mind I also live in a completely different state from the properties.

3-SFR Owners moved out of state and looking to liquidate.

C to C- Area

2 of the properties were rehabbed in Jan. 2016.

1 property was bought turnkey in Dec. 2015.

2 of the properties have tenants that have just resigned their leases for another year.

1 of the properties has a tenant that lease ends Aug. 2017.

Purchase Price: $150K

Last Appraised May 2016: $205K. (According to the Owners)

Total needed in repairs and/or updates ($6K). (According to the Owners)

1- 3/1.5 1220 sqft

2- 3/1 1730 sqft

3- 4/2 1670 sqft

Comp Totals on all 3 Properties from my Realtor:

Average Price: $167,700

High End Price: $242,500

Median Price: $164,000

Low End Price: $92,200

NOI- $1896.93

Financing: I was pre-approved for a mortgage here where I live about 6 months ago, but my credit has gone up an additional 20-25 points since that time. I have a private lender that I found online (Kevin McNeill), but have not screened him just yet, but he is interested and wants me to fill out an application. If I go with the private money, I would like to refi after a year and switch it to a convention loan.

(If any of you know about Kevin McNeill @ McNeill Capital Recoveries Incorporated please let me know if he someone that is trustworthy or if he is a reliable Private Lender, thanks.) Also, if anyone has some good Private Lender Screening tips or advice I would be grateful to hear. 

Thanks everyone, I really appreciate it!

Hey Tom, the lenders I met online, they are located in different states, as well as the property area im looking into. I have googled both and found their websites, but I got a application from one asking some personal information inorder to see if I can receive financing. So I want to screen him before moving any further thats why I was asking what should I find out about him to know if hes legit enough to provide with my personal information?