All Forum Posts by: Ted L.

The loan will be simple interest and there will be multiple draws. I agree that the math is quite simple, but it’s just another task that has to be done. It also has to make its way into an invoice. I would think this could all be automated but I’m willing to just use a spread sheet and simple invoices if there is not a better way.

I am making a private loan to a fellow investor. I will need to calculate the interest due and then send an invoice monthly with the amount due. This would be relatively simple to do with an excel sheet. I wanted to see how anyone else handled this. Do you use a specific program? Do you just use a spread sheet?

No, it will not make a difference.

I think Scott has given the secret to networking above. It’s not just meeting people, it’s the follow up. I think it’s especially important to offer something of value to the other person so that you might work together. Starting out, the most important thing is to be involved in deals/projects so that those contacts get added to your network.

Scott Roberts is great. He has a great knowledge of the area and has insight into the investor mindset.

Is there a loan product like this: I deposit a sum of cash with a bank and receive tiny bank interest of say 1-2%. They extend a line of credit that is perhaps double the amount deposited and then charge line-of credit type rates? I guess I’m trying to leverage the money I have available without having to go through the process of applying for a loan or paying mortgage tax every time I buy a property. Furthermore, this would allow me to more easily provide a proof of funds. I would think a bank would find this acceptable since they are partially secured.

I paid cash, but it took a little while to get the title situated. I don’t know if the closing date is as critical and their time frame for getting the deposit and contract.

Now that you have won the auction, the real work begins with Hubzu. Yes, they actually expect everything back in 48 hours. The process is very automated. You are going to need to get on the phone in the morning and do everything you can to try to get ahold of someone. I had a similar experience with Hubzu and managed to get it to close. We were sent the contract at 4:30 on a Friday and it was to be signed by Monday morning. The problem was Monday was a legal holiday. The offshore contact person we had didn’t care. Somehow my attorney was able to get it straight. To some degree, you can’t negotiate the terms anyway so I don’t know how much your attorney can do. The only thing I knew from a previous transaction was to not accept their “free title insurance”. I checked the box that I would obtain my own title insurance.

Here is how I like to break down project. It varies a little, but this seems to be fair to me: (Percentages are percentage of gross profit) 25%: Finding the deal. This does not mean looking on the MLS for a “good” deal. This means getting and off market deal where there is already a profit if it was just put on MLS. 25%: Managing the renovation. Hiring contractors, design, material selection. 50%: Funding the deal. Each of these categories can be split based on the percentages of effort that each individual provides. So the split might end up being 58/42 as it is in a project I’m working on now. If you are doing actually labor I would value that at “cost” of what it would cost to hire that out. So it might be $20 an hour. Neither of us lifts a hammer, but contractors tend to over value themselves when they become partners in a flip.

The Chase Ink Card is great for business. You get points (1%) for your regular purchases but you can also get a bonus of $800 for signing up. If you are just spending couple thousand a month on a card this is the way to go. I will gladly send anyone a link so they can get the $800 bonus. Just message me your email address.