All Forum Posts by: Tim Mangold

Well, when you say it like that, it sounds pretty simple doesn't it. 

Hi,

@Mark Brogan thanks for tagging Brian

@Brian Gibbons

Yes, I am talking sub 2 and taking a note. For an example, lets do 500k purchase price with 5% down and 3% closing costs & tax. I'd want to do zero money out of my pocket so the 5% down and 3% closing cost would be financed by my private lender. My pitch to the lender is that the principal is secured against the property, however, I don't know how that would look.

500k Purchase

25k down

15k closing

Total Borrowed: 35,000

Would the 35 borrowed be recorded against the deed in a second position behind the original mortgage? Or would I include the 35 borrowed in my note between the seller and I? Or would I just use a contract between the lender and I stating that they are to be paid out when I sell the property X years later. 

Hi Everyone,

I'm reaching out to the Bigger Pockets crowd because I would like to do some subject-to deals using private investors, however, I'm not sure how I would structure the deal. I've been working leads for lease-options and subject-to's and I've noticed a lot of them are lost because the sellers want some money up front. Normally we pursue motivated sellers and do a zero down, however, in hopes of increasing my volume, I wanted to be able to move on the deals where the sellers are willing to work on terms but also want some money upfront. There's enough money on the back end to be able to pay a good ROI and I know some investors who would be willing to invest. The issue I'm having is that I'm unsure how to structure it so their principal would be secured against the property. Have any of you ever heard of someone doing this and do you have any insight as to how the deal would be set up?

Let me know if you need any clarification or have questions for me.

Thanks!

Tim 

@Brandon Turner thanks for the info, I'm new to this and wasn't aware of the keyword tool, I'll set these up now. 

@Leigh Ann Smith   thanks for the info on your experiences, its too bad you found out that after you spent the $300! 

I'm personally not looking for bank financing since I don't qualify for a large enough loan due to my income. I'm planning to seek out some private lenders and possibly do a profit share to make the investment really attractive for them. 

However, in regards to the comment you made in the post, the article below outlines how LLC's can build credit. I've been doing research on the topic and this is one of the articles I have saved, short and to the point. Its all basic/common sense stuff but sometimes it helps to see it spelled out.

http://www.bizfilings.com/learn/small-business-cre...

Thanks again!

Tim

Hello Everyone,

Long time follower, first time posting, exciting stuff! I've been doing a lot of reading and researching on real estate investing and I'm ready to make my first deal. I'm planning to start with a flip and will continue to do that same strategy for my first 3-5 properties then want to grow my portfolio by holding single family residential homes. I've taken some of the initial steps in forming my crew (agents, lawyer, accounts, contractors) and wanted to get some insight on LLC's, insurance, and networking.

- LLC - I'm going to be investing for years to come and want to have my personal assets protected as well as all transactions to be done through a separate business account. To do this I wanted to form an LLC but wasn't sure the best time or method of doing so. Would it be prudent to do this online on my own or should I pay someone to do this for me. My main concern with doing it on my own is that I won't cover all the bases and leave myself exposed to unnecessary risk. Additionally, I'm not sure if there is a best time to do this, would it be wise to incorporate prior to my first property or should I wait until I have more of an operation running.

- Insurance - With my flips I plan to do most the work myself and contract out any bigger jobs outside my abilities or that require a permit. Since there will be people working on my property I wanted to see what kind of insurance I should carry to make sure I'm not liable in case someone were to be injured. I'm assuming this won't be an issue with the contractors but of the jobs that I'm doing myself I'll have friends and family helping who are going to be paid under the table in cash (unless there is a better/safer way to compensate these type of workers). So, I wanted to know what type of insurance I should have above and beyond regular property insurance so that I'm not stuck paying medical bills if someone does get hurt on the job. 

- Networking - If anyone has any networking opportunities for newbies in the greater Seattle area, please share! 

Thanks in advance for taking the time to read and response, I appreciate the help and look forward to your responses!

Tim