All Forum Posts by: Tarik Larue

I would consider Michael Blank who has a great blog and was on an episode of the BP podcast. Another regular contributor is Ben Leybovich and he offers his Cash Flow Freedom university for a low price. 

The lowest I have ever heard of is 2 points and 12 %. The highest should be 5 points and 16%. What you described is more commonly called a joint venture when the lender gets an equity split. Look up some Hard Money Lenders online to see what terms are normal. I can suggest Lima One, Visio Financial, Rehab Financial, Dominion and Advance America. BP also has a directory by state. Look for someone local, if possible, and after a few loans you may be able to get better terms. First time investors may charge less interest and private lenders will be happy with 8-10%. Also avoid monthly interest payments and try to pay a balloon payment after you sell the property. Good luck.

I have used Brick House Title in Silver Spring, MD. She works with lots of investors. My hard money lender likes King Title.

@Justin S. an investor could be your friend or coworker. They would be happy to make 10% interest or maybe less on their savings and don't require monthly payments or points. They also tend to know little or nothing about real estate except HGTV. 

I hired Mount Washington Group in Pikesville MD after much research. They manage 300 + units and were referred by two other investors. They are very experienced with Section 8 tenants and inspectors in Baltimore. Denise U. who Ned mentioned is also really good as she owns over 60 properties herself and teaches a rental class for new investors. Let me know who you pick and how you like them. I also know a good company that will manage your tenants but won't do tenant placement Tyhai Properties 443 759 4171. Good luck.

@Damian Hill Greetings. The first step after reading the BP guide for beginners is to select a niche based on your personal strengths and financial situation. Many choose wholesaling or rehabbing to begin with. I didn't feel that wholesaling was a good fit for me especially in the overinflated DC market. If I were to find a really good deal I'd rather partner up with a lender to split the costs and profits. In the meantime I decided on the rental market of Baltimore, MD which is 45 mins north of DC. There are tons of distressed foreclosures that cash flow once they're fixed up. But you would have to save some cash or get conventional lending and some programs only require 5% down. Since I work full time it's a good way to generate passive income while I save up for my first rehab. Good luck.

Greetings Ron. You make a lot of valid points and I agree that an investor needs to be very knowledgeable before asking friends and family for private loans. That's why I personally started with Hard money lenders because they know how to accurately assess real estate deals. If your numbers are wrong and you can't resell or refinance the property then they will have to take it. Many HML are current or former rehabbers so they can run comps, evaluate rehab budgets and draw schedules for accuracy. Once I have done a bunch of these deals and fine tune my numbers then I can show my private lenders a track record of success . Investments of any type are risky but I do put my own money plus a lot of time and energy into every deal. Hopefully this installs confidence in my friends and family when I come around with my hands out.

Greetings Omar. Using your car as collateral is a great idea if you don't have a lot of extra cash for investing. I first learned that credit unions and banks will give you title loans by Lisa Philips, another BP contributor on her website (affordablerealestateinvesting.com).  I have also gotten loans at those chains like TitleMax and they charge like 10% monthly which is crazy. Using debt to purchase income producing asserts is a sound strategy especially if you can build equity or force appreciation to quickly pay off the loan. 

Like Adam I have also used 16% Hard Money loans to buy and rehab foreclosures. Those lenders don't care about my fair credit, the condition of the house or my inexperience. They look at my income, the market value of the property after repairs and the overall deal structure. I also use no interest credit cards to buy my materials and appliances which improves my personal credit score. I know Dawn Anastasti used peer to peer loans from sites like Prosper and Lending Club. Lastly you could take out a HELOC on your primary residence and repay it when you sell or cash out of your investment. Leverage is a great tool to build a mini empire and you can use the cash flow from one house to pay down equity on another to get it free and clear faster. Read Ali Boone's post on BP for some lively debates on the topic. Good luck whatever you decide.

Hey Presley. You can definitely offer below the asking price. Especially if it's been listed for a while and you are the only interested buyer. I normally subtract 10% for every month it's been listed.

Thanks Dennis. I will definitely consider them .