All Forum Posts by: Tom St. John

Brian,

My biggest challenge right now is finding Private money to help partially fund some of the deals that I have been able to come across. I've joined the local REIA and have been doing some good networking. I've come close to securing funds from one seasoned investor (after providing a solid business plan backed by good numbers), but we were unable to agree on the final terms. This particular endeavor made me realize that along with alot of good people, there are also quite a few sharks circling the waters ready to take advantage of someone. I'm all for crafting a deal that works well for both parties, but not one that is totally advantageous for one party.

i've also attended auctions and other events in an effort to just get my name out there and start cultivating relationships, which I believe Real Estate is all about.

BTW - I always wondered what happened to Bryan Adams, the rock star (Summer of 69). Who knew he changed the spelling of his first name and was hiding out as an accountant in Philadelphia.

Tom

Travis,

You should do a search on 'Soliciting Private Money' and various other titles on the subject on this site. There have been some great discussions on what is and what is not allowed when going after private money. One particular thread concerning SEC considerations is extremely important. Read the discussions and educate yourself as much as possible before venturing out in search of funds.

Best of luck,

Tom

Andy H - I wouldn't so much worry about nightmare scenarios that haven't actually happened yet. As a new investor, I would suggest you always have an inspection done on any property you purchase, unless you yourself are qualified to do the same job. Also, get the utilities turned on and tested, because major electrical and plumbing issues could mean the difference between a profitable deal and one that results in a loss.

The more experienced investors can eventually do their own inspections or gauge the appropriate costs into the budget, but being new, this might not be a luxury you can afford.

Tom

I thought that the one difference between the Lease Option and the Lease Purchase is that in the Option, the buyer has the option to purchase the property, while with the Lease Purchase the buyer is obligated to purchase it.

Tom

James,

I like a nice Arturo Fuente Don Carlos #2 or a Padron 1964 Anniversary. However, if one happens to get a hold of a Cuban(legally,of course ), the Cohiba Esplendidos is a fine smoke.

Tom

Yasmine,

As mentioned in my previous post, just make sure you have an exit strategy in place in case something doesn't go according to plan (buyer backs out at last minute). Hard money has it's useful purpose, particularly for short term purchases, but private money or conventional funding come at much cheaper terms and reasonable timeframes. I would suggest, as mentioned by other responders, that you get out and network with other investors and start looking for private money and possible partners to work with.

Tom

Yasmine,

You need to be very careful when considering using Hard Money for your real estate purchases, even for short term projects such as flipping or wholesaling. As stated previously, Hard Money comes at very aggressive terms and short term balloons. You would need to have good backout strategies in place to make sure you can pay the loan off when it becomes due. if you are counting on a refi, you need to make sure what you qualify for prior to putting yourself in that situation, especially being a new investor. Extensions can be obtained on Hard Money loans but they are only for a limited time and will cost you dearly. Remember, failure to pay back the loan can result in the property being taken back and money invested lost. Just be smart, make sure the numbers work and always have a backup plan/exit strategy.

Tom

Douglas - Finding private lenders or someone to partner with involves networking. If you haven't already, join a local REIA club and attend not only the main meetings, but any sub groups that also meet monthly. I've had better success networking in the smaller sub groups. You should be able to come up with several people who do private lending. Also, attend any auctions (both onsite and at the courthouse steps). Auctions can be a good place to meet other investors who are also cash buyers/private lenders. Developing good relationships with people and having a sound business plan to present to them should get you to your goals.

Tom

Thanks for the welcome Lynn. I see you're from Annapolis, MD. My wife and I lived in Sykesville, MD for six years before moving to the Asheville area. We really enjoyed our time in Maryland

Jon - thanks for the welcome. The summit looks like it's going to be a really great place to meet and network with others. I'm not going to be able to attend this one, but hopefully I'll be able to get to another one. Again, appreciate the response.

Tom