All Forum Posts by: Steven Beckham

I’ve got a solid opportunity for a fix and flip in the Chicago suburbs, but I’m having trouble figuring out the financing. I’m leaning towards hard money, since none of my friends with money seem to be interested in real estate... but I’ve talked to two hard money lenders that want something resembling 12% interest and 3 points. And they say that after two deals with them it gets cheaper.

Is there anything cheaper than this out there for a first timer? Does anybody out there have a good experience doing their first fix and flip with a hard money lender?

I'm looking at doing a fix and flip, but I don't have the funds for the purchase, and the hard money quotes I've been getting are too expensive. The subject property is in livable condition and qualifies for bank financing, but just needs a major face lift. However, I currently own my primary residence and can't qualify for a mortgage unless I put at least 20% down, which I don't have.

A friend of mine is interested in real estate investing but doesn't have the time, so it seems like a perfect partnership. He was prequalified a while back for a 5%-down conventional mortgage for a primary residence, but he decided to renew his lease instead. So we were thinking about renewing that prequalification letter so we could put an offer in on the subject property, and then obviously using the mortgage to fund the purchase. I have a HELOC to cover the rehab.

What issues could arise with this? Is it a problem that he would be claiming it as his primary residence and then selling it a few months later? Are we able to create a legal contract that states that he will carry the mortgage and I will handle the fix and flip, and we will split profits?

Also, I've never done a partnership. He is only fronting the mortgage and I'm taking care of the rehab. Should we split profits 50/50?

I greatly appreciate all input! Thank you.

--Steven B.

I’m beginning to make offers on potential rentals and fix and flips and am looking for a general contractor in the western suburbs that can walk properties and give estimates (and, of course, ultimately do some rehabs), starting ASAP. I have a specific property that I walked yesterday and would like a rehab estimate before I jump into this one. Any suggestions?

The idea of going to an REIA meeting is a little intimidating for a guy who has never done anything in real estate except purchased my own home. Everyone says that this is the best place to meet people and network, but I don't have experiences to share, so I think I would feel awkward approaching an investor without a story or lots of money. How do I make the most out of an REIA meeting when I'm not able to offer money or experience?

The advice I've gotten so far in getting started in real estate is to join a rehab team, learn the ins and outs through experience, and then start making your own deals. Is this good advice? Also, how do I go about finding a rehab team that will take in a newbie with no experience?

Hey guys, I'm new to the whole real estate investing game. By new, I mean I've done a lot of reading and analyzing but never made a deal, mainly because I have no money and no connections. I have a full time job and can't afford to quit just yet, but I'd really like to get involved however I can, whether that's joining a rehab team or actually making a purchase. Any suggestions on what my first steps should be, other than maybe go to an REIA meeting?