All Forum Posts by: Ronald Fontenot Jr

Stephen Lewellis, thanks for the reply. Perhaps that statement regarding risk came across wrong. I understand there are risks involved with investing in real estate, as well as any other for that matter, and I will certainly do anything I can to mitigate that risk as much as possible. The friends and family I have been speaking with also understand there is risk involved. The discussion of risk has taken place between us. That is why I'm trying to keep their investments as legitimate and above-board as I can. I've assured them that if there is a loss, they would be made whole and the loss would fall upon me. I will have this written into any agreement I make with them. To that end, I am coming into the deals self-funded to a particular level and any money I'm asking for is to get me across the finish line. I certainly don't take it lightly.

I have a background in real estate to a certain extent. Having been a contractor and home-builder for decades, as well as having been involved in many real estate investments on the contracting and construction end, I don't come to this with complete naivete about the process. The purpose of this post was meant to educate me on the other end of the investment spectrum. I want to learn about every part of the process.

Your advice is well taken and I appreciate you taking the time to reply. As time goes on and I get more involved in this new chapter of my life I have much more to learn. And having folks like you taking the time to voice your concerns, even though you don't know me, is truly a blessing and adds a ton of value to the education I'm trying to acquire. Thank you.

You seem to have a great deal of wisdom and enthusiasm and I look forward to having you as a colleague in this industry. 
Best of luck to you as well in your endeavors.

Thanks for the info Jeff. They are family and friends, yes, which is why I want it to be on the up-and-up. Right now we're looking at $50k worth of loan money from several people, all of whom are excited about what I'm doing. And I wouldn't put their money, nor our relationships, at risk over it. I'll reach out to a lending attorney. Any suggestions or referrals are appreciated. I agree, a few hundred bucks to get the details right would be money well spent. And that is exactly why I'm posting here to get the opinions and advice from those in the know before pulling the trigger on anything. Thanks again!

I have spoken to a few people who may be interested in lending me money to help in building my portfolio. I'll be starting with some flips to build cash reserves. 

I understand that a promissory note can be used to secure their investment with me. Is there any other contract or lein necessary or recommended to aid in making my potential investors comfortable lending to me? I want to appear and be a professional as possible. Any advice is appreciated!

Speaking as a contractor, if I were you, I'd move on and save your money for the new contractor. You don't have a contract, so this isn't going to go well for him IF it ever makes it to court, and if it does, countersue him for legal costs. Also, the fact that you're dealing with this situation is worth keeping the money you're thinking about paying him. In addition, the new contractor you hire is not likely to cut you any slack for having to finish someone else's work. And lastly, by giving this guy any more money, you are enabling his behavior. Let him feel the pain of this. Don't lose sleep over burning that bridge. There's plenty more contractors out there willing to do a good job for a good price. And for Pete's sake, with the next one, GET A CONTRACT!!!

Everyone keeps saying "just do it", so I did. Made 10 offers over the past week on some SFRs and found out today that two were accepted. (My first deals ever) Looks like these will be fix and flips to try to build up my cash reserves to move on to some BRRRRs. Got into them both well, so I'm in no fear of losing money and got them both off the MLS. Now the fun begins!

 I bit the bullet and booked at the JWM. I didn't realize they had discounted blocks for us. So that worked out well. I really didn't want to have to rely on Uber or rent a car. 

@Lawrence Briggs for sure! Looking forward to it. We'll see you there!

Curious to know how many of you that are going will be staying at the JW Marriot and how many are staying elsewhere. It's a bit pricey for me at the Marriot, but I have the opportunity to stay in a friend's AIRBNB condo close by so that's gonna be my plan. 

I'm in! This will be my first conference of any kind, so not sure what to expect. But I hear great things. Hoping to meet other newbies and the most experienced alike. See y'all there!

Fix the hump the right way. Don't rip out the hardwood and then use leveler. It won't hold up. If I were you I would spend a little to fix the hump properly, patch in the hardwood, and then use LVP over original flooring, keeping it intact. If you ever decide to sell the house, pull out the LVP and refinish the floors at that time to get max value. The money you spend to refinish the hardwoods will be money you'll spend time and time again. Renters do NOT care and they will abuse it. LVP will hold up well enough to get you through many years, and renters, before replacement is necessary.