All Forum Posts by: Tom Mole

@Elvin Ames, I have to agree with @Jeff S on this one. When I read your post my first thought was "Wow! I'm glad this fellow has the opportunity to vent here on BiggerPockets.com rather than grabbing a AK and heading off to the local middle school." Don't go postal, please.

The advice I give to my fellow investors who get jittery is to take a deeeeeep breathe and hold it, then let it out sssllllooooooowwwly, sssssssssssssssssssssss. Now do that again.

Now that we're calm, let's take stock. You took out a HML for six months because that was the only way you were going to get financing. You seem to have understood that this was a very short term loan and that your lender was serious about getting his money back or the collateral in the most expeditious manner. You made a deal with your eyes open, now comes the hard part and the lender is a crook. (Another deep breathe here.)

Your lender may seem like a shark. He may even be a shark, but you're in open waters. Sharks are to be expected and coped with. They can't help being sharks. They do what they do. Hard money lender do not lend for the long term. Did you do what you promised to do? Did you get refinanced into a long term loan before your note came due?

(Another deep breathe here and apologies from me to you for being harsh.)

Perhaps your lender seems like a crook to you. What do you think you're tenants are saying behind their landlord's back? We're all crooks in somebody else's mind sometimes. (You should see the rap sheet on Mother Teresa sometime!) Now the dirty cloud of name calling is dissipating into the atmosphere let's see what we can do.

You seem to need a bit of gap funding, provided that you can be certain that your permanent funding is on the way. Still it would be a pretty tough sell.

You have some equity and apparently you can keep up a 14% note, so you there is some value. Have you any interest in taking an equity partner?

Whatever else you do, get a good RE attorney to deal with the DIL. Buy some time pushing this back through the regular foreclosure process, then USE that time. Don't wait until tomorrow to get started. If there's anyway you can close that note without your HML needing to file, you should consider it. Your reputation in this business is more valuable than your credit report. Never let it be said that Elvin doesn't do what he says he going to do.

I wish you the best.

My first impression from what you've said is that this hot mess has some fairly thin margins for all the potential for disaster. What is land value for this parcel? Remember this could end up costing more than the comps to get this place repaired if things go way south of predictions.

I presume that you don't have a lot experience with this sort of project. Can I suggest that you make the offer only after talking to a more experienced rehabber, then see if get the price you would need to wholesale the deal or share the deal with the rehabber who will navigate the scary parts.

Going forward, I'd make the offer at or below my maximum allowable offer. I wouldn't get too involved in the debate about what form to use. There are a lot examples of simple purchase offers available out there. Use a standard form, if that makes you and the seller more comfortable. Just make sure that you allow yourself an adequate inspection clause.

If you get your offer accepted, do you homework right away! Look for tax liens, mechanics liens and other other encumberances. If there's a problem, get help. Don't wait.

I wish you the best success. Please post an update on this project when you news. I'd like to hear how this shakes out. If I can be of any help, don't hesitate to ask.

All the best.

Patience, @Tasha Mckoy. ;)

I'm on the left coast, clearly not anywhere near MD. I hope that doesn't matter too much. At least I'm responding.

Can I ask you why you want that first house back? I mean it's none of my bee wax, but if you want it as an investment, there might be an emotional attachment that could cloud your decision making.

OK, I'll assume that your motives are purely business. Further, I'll presume that this is a killer deal, provide you can get it at the right price and you figure that you can. In that case give the owner/seller a phone call to ask if she's still interested in selling. If not, then buying anyways would be a non-business decision.

If the seller is interested, ask why it didn't sell during the short sell. Did the bank disapprove the price or were there just no offers? Is the place about to go into foreclosure? What is the least the seller would consider in order to sell? You see? You've got to contact the owner. If you do it right away and the seller is motivated, then you have the no competition and should be able to negotiate the lowest possible acquisition price.

Post and update when whatever comes of this happens. I'd be interested in hearing how this shakes out. Let me know if there's anything I can do to help.

All the best.

Welcome @Casey Bradford. I'm from Los Angeles. We call it the "other LA".

You should connect with @Andrew Cordle. I've seen him speak at Realty411. You'll like him. He's got a great story and I think you'll relate to him. He runs a rehabbing system on steriods. Check him out.

You've got right idea to dig into BiggerPockets.com. I soak up the podcasts too. There's great stuff out there.

I recently connected with another brand new investor from New Orleans you might want to chat with. @Alesha Rayford is another investor just getting started who is interested in rehabbing. You might find it easier to share war stories with someone with you own level of experience. You could share resources right away and possibly share deals in the near future.

I'll toss you a Colleague Request in a minute. That way we can stay in touch.

All the best.

You guys should go meet with @Chris P. Find a way to make it. If you have other plans, change them. Make this a priority if you're serious about building your RE biz.

When you get there find Chris and have him introduce you to everyone else. Don't be shy. Tell everyone you're new and ambitious. We RE types like that. Very soon you have more help than you could get in 1000 RE books.

When you get back tell us out here in BP land how it went, what you learned about real estate, other people and yourself. Inquiring minds want to know.

All the best.

Wow! What a fun thread. So much drama. I'm sure glad I don't have dog in this fight. The last five episodes of Bridezillas seemed boring next this food fight.

I appreciate what you're saying @Darren Nichols . I think everyone else does too, but seriously, if I saw one of your signs in my neighborhood, I'd take it down and feel good that I did. Bandit sign, legal or not, are just another type of graffiti in my humble opinion.

I wish you well in your business. If you can get your thinking right, you seem to have the boldness to be successful. For my part however I would not work with you. You scare me. Who cares about bandit signs anyway. You will fail unless you very quickly learn to play well with others. (Several others of us might also take a lesson here.)

All the best.

@Darren Nichols

I wish someone told me in the beginning not to pay a guru. You should listen to these folks. I didn't even know about BiggerPockets.com or local REIA's in those early days. Funny thing, the guru didn't tell me about them either. Fellow investors did, however.

Consider the time value of money. $5,000 lost to a guru today might well become $500,000 in 10 years, if you invest it well. That's an expensive guru!!

Congratulations @Sarah S.! You stood up and took care of a situation that many of us have faced or will face soon. You are an inspiration, particularly because you never gave up your humanity. You are da bom!

I totally understand what @Teresa Keith (no disrepect intended) is saying, but I don't think that anyone in this thread ever saw you as a "sucker". I speak for myself when I say that was never on my mind. I'll bet that applies to everyone else here as well. You are a compassionate person with a big heart and anyone that takes advantage and abuses that is probably down on their luck for a very good reason. Most people do make the beds they sleep in one way or the other.

IMHO, often times "helping" someone with a sad story who won't help themselves is unfortunately a way to keep them weak and dependent. As you pointed out when the cards are laid on the table people will often amaze you with the inner strength that they forgot they had. I do believe you just provided this unfortunate soul a blessing. He may now move on into his future with ugly past behind him.

Please keeping helping people to set down their burdens, repack their bags and move forward in life. You're an angel!

@Alesha Rayford congrats! You seem to be off to a good start.

I might offer one suggestion. Please don't set off into the wilderness alone. Flipping properties on your own after reading a book, despite how good it is, would be a risky way to go. Get a partner with the rehab experience and the funding you need.

Have you looked up the REIA's in your area yet? Take a look at New Orleans Real Estate Investors Association as a possible place to start. Network your guts out. Unless you're networking, you're not working. That's how you find the funding, the experience, the help and the deals you need to find.

And...of course...stay engaged on BiggerPockets.com. You can find anything in the forums. That podcasts are jam packed with information on every area of real estate investing provided by @Joshua Dorkin and @Brandon Turner with a different experienced investor each time. If you haven't yet read The Ultimate Beginner's Guide to Real Estate Investing, what are you waiting for? Read the book and you'll have answers for the first 80% of your questions.

I'll send you a colleague request in a minute. Maybe we could partner on something in the future. You'll learn a lot by doing, but it can be overwhelming. Best to work with someone who won't be overwhelmed. Let's chat.

Hello Brad,

It sounds like you are a man with a plan. You seem to be right on track. I trust you'll keep the BP community up to date on your progress.

All the best.