All Forum Posts by: Steve Cheslock

I have a childhood friend doing very well in finance and said "when you figure our your model and do a few we'll talk.  I can raise you a few million if you ever want to start using private money".  

*I'm right outside NYC in a very high end town where the avg price of home on the market is $1.3mm, so $2-3mm isn't a gigantic sum.  I also feel I could raise that when the time comes, but if I can take that off the my plate to focus elsewhere that has value.  

So my question is how would you compensate my friend if he raises me $3mm (at terms I'm comfortable with)?  

Finders Fee?

% of money raise?

Small % of business or deal(s)?

Other suggestions?

I'm sure this is more "whatever you negotiate" rather than a standard rule of thumb so I'd like to hear what others have done in this situation or any creative thoughts. 

@Cathie Kovacs 

Hey Cathie,

I'm always looking for quality subs in Fairfield County.  Just PM'd you.  

@Paul Bergagna

There are many options here and I am very familiar with Greenwich (grew up in Greenwich and currently living in backcountry next to Stanwich).  

First off you have an empty lot .25 near the train station?  There are .1-.12 acre lots in Byram (R-6 zone) asking $230K (granted thats asking), you thought about selling the land?

Not sure if you have worked with Greenwich P&Z before, but I have never heard of anyone having an easy time.  My family is currently in the middle of trying to subdivide 20 acres and it's been a huge hassle.  This is not the first time we've dealt with them and in the end there have always been costly "issues" after we were promised things.  

As far as rental rates I'm currently looking at rental rates all throughout Greenwich because I am looking at a two family in Byram.  Ed, if you have someone getting $4400 for a 2 bedroom over a garage tell them to do whatever they can to have them stay there.  This is not market value and not even close.  @Paul Bergagna I have access to the MLS. PM me and we can meet somewhere in Greenwich and I can show you what's on currently on the rental market (I was just looking at a 2 family on Bruce Ave) and the rates.

@Jim Coleman First off how did you acquire this list?  

If it's something you paid for then do what @Brian Pulaski said.  But in the conversation just spend time building the relationship on personal level.  Once there is a warm relationship you can ask him/her if you can send them your questionnaire (you can use different word if you like).  Basically I have a Google Docs form that I send out.  It takes about 3 mins to fill out and gets all the info Brian stated and more.  More importantly knowing that you are going to get all that info on the doc it allows you to stay present in the conversation and establish that relationship.  If you want the form I use just PM me.  

@Wayne Brooks yes, thank you for the clarification.  I should have mentioned that I understood the debt would count against her debt to income. I read somewhere that it is possible to only have the debt count against her for 12 months if we can provide 12 consecutive months of payments against the loan.  Do you know if there is any truth to that by chance?  

@Wayne Brooks we would not be using FHA on this. Thank you so much for the time and feedback. Have an excellent day.

I want to close on a rental property and have the cash but not the credit. I have a friend who has yet to use her FHA loan and we were just wondering if she cosigns for my investment property loan does she lose her eligibility for FHA loan?

Can I use someone else's money (that wasn't gifted or loaned to me) for my down payment on a bank loan?  Situation explained below as briefly as possible. 

I have a family friend that wants to get out of their 2 family and willing to accept $700K (which is at or close to market value). They will jump at $700K tomorrow (not at the price, more at the freedom to be out of land lording) 

New tenant just moved in (Sept - 2 year lease) to 1st floor unit and approached friend about seller financing.  In brief discussion with friend he mentioned the tenants offering a $300K down payment, he did not mention if they talked sale price.  Friend is done with land lording and not interested in seller financing and just wants to get out.  He will let me talk to the tenant about what the tenant had in mind regarding seller financing.  

It seems to me if the tenant truly is willing to offer up $300K down that he is serious about the property and that he is confident they will have financing set up by the time their lease is up (22 months).  

My question (I'm new to this and just trying to get creative) is lets say there is a deal here (whatever the numbers say)... is it legal for me to sign a contract to get equitable rights to the property.  Then agree to the seller financing that the tenant proposes.  I then take the $300K down payment he gives me and use that for the down payment on a traditional loan.  

Obviously there is a lot of factors left out of this (will bank approve, you name another etc) but just from a theoretical standpoint is what I proposed (using tenants $300K down payment as a down payment for my traditional loan) illegal or just not feasible and I've completely missed something here that more experienced people can explain to me when they are done having their chuckle.  You're welcome, we should all laugh at least once a day to keep us young. 

Thanks in advance.    

@Devan Ludden Interesting, haven't heard of that yet.  Great idea. 

@Dominique Mickles This is a very crude example with so many factors left out but you'll be able to see the difference.  Lets say you see a house for $100K asking price.  

Option 1: Pay $100K on 30 year loan at 3% interest.  Over 30 years you will pay $100K (principal loan) AND $51,777 in interest for a total of $151,777.  

Option 2: Pay $110K for the house at 0% interest over 30 years.  That means each payment you make goes directly to the principal loan (since there is no interest), so over 30 years you'll pay $110K.  

@Mike Dymski do you have any investments in the Greenville area.  I'm currently in the North East (Fairfield County CT) but was just in Greenville last week for a few days.  Great city.  I have a friend that just moved to Spartanburg. 

@Ilona Kovacs I'm currently in Norwalk CT and was working on a project in Norwalk for 4 months before it fell through.  As mentioned the SS industry has so many nuances but I'm sure Port Chester and Norwalk have some similarities seeing that they are about 15 miles apart.  

I'd also give a strong endorsement to @Scott Meyers as well.  He has been part of the SS community for sometime here on BP and has always been helpful and insightful with me on every dealing I've had with him.