All Forum Posts by: Greg F.

Pick your city. I really dont think you can go wrong. Why do you have to move to invest in Texas. I know of some investors that JV deals out of state. I would rather have 1% of 100 peoples work than 100% of 1 person work. Just my thoughts.

My brother and I just started up our company.  We looked into him as well but decided against him because of the fees and cost just to consult and some other small reasons.  We went with Mark Kohler and his team.  We are very happy with their service, time they spent with us, all of the changes we made during the set up.  The main reason we went with the Mark is that he is a one stop shop when it comes to lawyers and CPAs. Good luck with your search in finding the right team.  Here are the links to Kohler and Team. 

http://kkoslawyers.com/

http://kohlereyrecpas.com/

Here is what I would do.First you have the cash to buy the property. And then you are going to use private money to fund part of the rehab. I would use part of the private money to fund the purchase of the property, and pay cash for the rehab. Just like Dell said above. There are certain things that should be in place to make sure your private lender´s loan is secured and insured.

Promissory Note – If you do not have one you can find examples online.

The Deed – Their name should be on the Deed since the helped purchase the property, either first or second on the deed.

Insurance – Again they should be first payee or second payee.

Once the property is sold you should have them sign a release of promissory note. Stating that the note is paid in full and all terms were meet.

You do not need MLS to get deals; you need an agent that loves real estate, loves making money, and is a go getter. An agent can search the MLS for the properties you are looking for. He/she can then research the property, send you over the info. Once you have looked over the info you then submit your bid on that property. The key is locking up a property to give you time to inspect and appraise the property. Legally the agent cannot submit offers without a signature from the buyer. Your agent must not be worried with offending other agents or sellers. He/she just needs to explain that they have an investor with an offer on their property and it is not full market price. There is a lot of material online that can go more into depth.

My first answer would be no you do not need be an agent. As an investor I am focusing on deal flow. If you want to cut out the traditional 6% real estate agent fee then yes. But then you have to pay the broker. If you are looking to stand up a brokerage that also will take time, every state is different. For me it's a no win situation unless you just want that experience, or to become a broker. Have you thought about using an agent to find you properties? A good one can bring you deals monthly by searching off the MLS or their networking. If you are constantly using one or two agents they will generally reduce their cut, because of the quantity of deals you do with them.

Does the seller need to sell now or can he/she wait.If its sell now. You have two options.One is a hard money loan. They generally can close a deal in 7-10 days. Interest rate are anywhere from 8-15% plus points. Most will only loan out 75-80% ARV.The good news is that you have a tenant ready to move in. I am guessing. If you go hard money loan, you will want to refi quickly to get out from under the high interest of the HML.Most hard money lenders can help you with the refi or know someone that can help you refi. Option two is private money lending. To me this is the best way to close deals.If you can try and go this route.

I am lost let me see if I follow this right. The seller contacted you because she needs to sell because of overdue HOA and taxes that equal $8,835. She owes $69,700 to a private lender. Which should be first on the deed? Now I am guessing that the private lender has money to pay the $8,835 in overdue HOA and taxes. Not all is lost yet. Grand total of $78,535. First 1 bedroom is a rough sell, but can be done. Lease option the property if the private lender is willing to deal. Market the property as a rent to own by owner. Put a lease option fee in there of 15% this is how you will get paid, 10% to private lender on the overdue HOA and taxes. So he gets his part of his money back on the overdue HOA and taxes, 5% to you for creating the deal and making everyone happy. Private lender can then raise the rent to let's say an even $800. You can make this a 3/year option with a balloon payment to the private lender, or sandwich the deal. Take a smaller cut of the 15%. Get paid $100 a month for 3 years, and then get paid at the end.I am no pro by any means, but I feel when someone calls, we as investors should help. Create a solution to help the client. If all means of creative deal solutions cannot be done, point the seller in the right direction.

Hey thanks for the welcome post. @Hattie Dizmond thank you for all the helpful tips for BP.  @Andres Jaramillo I plan on attending the meetings every chance I get.  It just seems I am always at work when they happen. 

Hello BP,

My name is Greg. I work in the oil and gas industry.When not at work, I have a lot of free time which I use to learn and practice investing. I just obtain my first rental property a couple of months back. This has really jumped started me into learning more and getting myself out there to meet other investors. We have slowed down on actively pursuing properties. Not saying if a deals comes our way we want look at it. We are currently working on creating a team of realtors, buyers, and sellers, before we launch our marketing campaign. We feel it is best to have a strong team in place before we start the business up full steam.

I have my brother/partner in the Washington State area to be thankful for. He has taught me a great deal about REI. We have a plan, we have our goals. I am interested in connecting with other investors, it can range from deals, picking their brains or just talking real estate. Our main focus is to wholesale deals, with flips and hold here and there. I would love to hear any input or suggestion that any one would have. I have an open mind when it comes to REI. We all can learn something from everyone. Thank you for reading my introduction post. Here is to financial freedom. I will update my profile with a picture when I return for work.

Regards,

Greg

I am fairly new to REI. From what I have educated myself with is this. I think William said it best in his post. Its not the niche its the market. I feel that I need to know a little bit about everyway to create a deal. All properties will be different in the own right. Some are flips, some are hold, some you can wholesale, and then some you just walk away because the property is in to bad of shape for what every reason. Always have an exit plan for the property.