All Forum Posts by: Walter Ciucevich

I️ have a private lender who has agreed to lend me a maximum of $200,000. I️ laid out terms of 8% interest only payments on a 1 year note with a 1% origination fee paid on the end or their investment would be an equity position in the property. I’d like to borrow enough from the private lender for the downpayment and rehab and secure more traditional financing or a portfolio loan for the rest. I️ have found a property that has 3 quad apartments for a total of 12 units. Currently, one unit is vacant in each property, the owner lives 2,000 miles away and it is poorly managed and in need of some repairs. Here are the numbers: Purchase Price - $235,000 Occupied Units - 9 @ $390 a month - total $3,510 3 unoccupied units - $390 a month Repairs needed - $55,000 My questions are how would you structure this? - Would you borrow the 25% downpayment and $55,000 repairs from the private lender and simply pay interest for a year, then refinance after a year to pay them back? - if they preferred an equity position for their money, how would they be paid? Do they get a percentage of the NOI? Is that paid to them monthly? quarterly? Annually? What is the exit strategy to get rid of the private lender one day if you’d like to? This will be my first shot at an apartment deal so I️ appreciate your input!

Originally posted by @Gen SteMarie:

Hi @Walter Ciucevich!  This is what we do:  we send unsolicited, real cash offers to homeowners. We pull homeowner data from the County Assessor (I've used both RealQuest and Data Tree) for the type of properties in the areas we want and send ALL owners an offer.

We scrub out the properties with a mortgage and spend a considerable time on pricing. We explain in our offer letter to sellers that we are serious, not agents/brokers, we pay cash, and are prepared to close in as soon as x days. We enclose a Purchase Agreement as well. Then we sit back and wait for the serious, motivated sellers to call us.

Works like a charm!

 This is great. We’ve done similar things mailing home insurance quotes to all of our target market. Would you mind allowing me to call and pick your brain for 15 minutes sometime?

That’s a great model. We’ve done similar campaigns for insurance sending homeowners quotes to all of our target market. Would you be open to me picking your brain for 15 minutes sometime?

Hello, I’m a new investor and I’m currently trying to build a funnel of leads for deals. I’m in Sanford, NC, a lower income area with a population of around 30,000 in the city 60k in the county. Median home price is $132k. I️ want to focus on 1-6 family residences for flips or BRRR. I’m reading Anson Young’s book and searching online and have come across the typical methods such as listings, direct mail, bandit signs, probate records, NODs etc. I️ feel like I’d be stretched thin and employing more of a shotgun approach if I️ go forward with all of these. I’m wondering if a more precise rifle approach would be better. My background is in Insurance. I️ run a State Farm Agency in Siler City, NC so I️ am definitely no stranger to marketing, cold calling, door knocking and sales in general. I’m not afraid to get my hands dirty and beat the bushes. I️ have a few questions I’d truly appreciate some feedback on: 1.) If you could go back and start over, would you employ a shotgun blast approach or a more precise method? 2.) I️ understand long term views of marketing, but in order to gain momentum I’d like some quicker wins. If I’m going to mail and door knock, what type of list do you believe provides the most direct path to deals and where would you suggest I️ build or buy this list?

Hello, I’m a new investor who is diving right in! I’ve found a private money lender to fund my deals at 8% interest only with one point. I’m now analyzing a couple of on market deals and obtaining some estimates to see if they make sent. I’m trying to build a funnel of leads for off market deals. We will be driving for dollars and I’m starting to explore marketing to probate owners. I’m listening to @Ansonyoung book about finding deals and have contacted my local clerks office. We are a county who does not have online records. You have to go to the courthouse and can search their computers for probate records. My question is when I go, what am I looking for? I would imagine I’m looking for recent probate records where I can find the deceased persons name, address, property info, executors name, address, contact info. Am I missing anything else?

Any specifics about what should be in this agreement?

John, No experience with this as I’m just now pursuing our first flip, but I read somewhere that you can search deeds for recently sold homes in your area, make note of the mortgage providers and see if any local banks are popping up more than once in your area. Hope this helps!

I went to lunch today with an older gentleman I know. He owns the building I rent out for my State Farm Agency. I gave him my spill on real estate investing and he agreed to terms of 1 point, paid on the back end with 8% interest only payments on a one year note. He will fund 100% of the purchase and costs up to 70% ARV. My question is, what now? What kind of paperwork do we need, who should I talk to to get it? Are there resources on BP for me to dive into to learn? Thanks in advance!

Has anyone used this website to find wholesale or motivated seller deals? I’m looking into my first flip and am considering their paid membership.

Hello, Long time reader, first time poster. I have been reading bigger pockets for some time and have been going through my circle of influence to find private money. I am somewhat lucky in that I have a private lender willing to take my meeting and entertain the idea of doing business with me on fix and flip loans. My question is what are some of the typical agreements made between a private money lender and a flipper? Is it: - 10% flat interest on the amount borrowed - a certain interest rate plus a percentage of the profits? - A percentage of the profits without an interest-rate?