All Forum Posts by: Paul Jamgotch

The question to me is, do you want to plop down $28K now to hopefully make $200/month while taking the risk of a long-distance rental? Everyone will have a different response to that question based on their cash position and return expectation. 8% CoC wouldn't do it for me personally.

You also need to consider your brother's time and compensate him for that. Might sound like an OK idea to him now but maybe not so much when he's getting called at 3 AM with a shot HW heater or something like that. Best of luck.

Is it possible to structure a no interest/no payment, six-month, 2nd lien on a flip project with intent to split net profits 50/50 rather than receive an interest rate? Because the actual loan amount is small the 50% of net profit could exceed usury laws.

Consider the following scenario I have run across a few times now:

Purchase, hold, & rehab $227K, HML amount $176K, Net sale $264K. We would have a $51K 2nd recorded. The net profits to split would be $37k ($18,500 each entity).

I understand the risks of fully funding a flip. I am more interested in moving this along as IF this deal was going to get done. The reason I would like a 2nd as opposed to joining the title is because I want the opportunity to foreclose on that second (paying off the 1st) after 6 months if contractor doesn't perform as expected. If I join the title all I can do is try to pressure the contractor to drop asking price, which, is not in the interest of the contractor. TIA

@Patrick T. How are things progressing? I was curious if you hammered out the details of your partnership and if you could share them? Thanks.

@Ann Bellamy My apologies, Ann & others. It was supposed to be a comparison to the Black Tulipomania of the 1600s. http://en.wikipedia.org/wiki/Tulip_mania.

I can see I made a mistake by making it a link. I'd edit it but sadly I can't on this site. I apologize.

www.blacktulipprops.com

I would very much appreciate some quick insights on a particular property there. Please email or PM me. Thank you.

J. Lancaster,

Looks like your post was moved. Here is what I replied... not sure if it will help:

"Your thread caught my eye so you will get subjected to my advice (although I'm not in your area):

I see your ad on Trulia and I think there is simply too much information. I think you need to draw buyers into a dialogue. You did a great job of itemizing repairs but I think that should be held back until someone shows interest. Take your potential buyer out to dinner before asking to marry him/her:

Maybe something like:

Investor's dream with plenty of equity to be had! Better yet, a great home to make your own:

620 XXXXX Ave.

2 Bedroom/1 Bath/932 sf

$37,500 or lower* **

$14,100 rehab estimate (contact for itemized list)

*** Deep discount if purchased with other one-three similar SFHs. Please inquire with me right away as these homes will sell fast.

J. Lancaster (xxx) xxx-xxxx"

Good luck, J!"

Welcome @Craig Vandenberg Nice to run into you again.

Maybe run this by the honorable women as well?

That I chuckled when I read your two posts.