All Forum Posts by: Wendell De Guzman

 Bryan, @Andra Barnett and @Jolee Lewis, you are all welcome. What help do you need in your market? Is it finding deals or finding FUNDING?

 Right ON! I know a newbie who used $100,000 Business Line of credit to get started rehabbing houses. Smart.

 If you're a Canadian citizen getting a mortgage might be a problem. If that's not the case, please let me know as you know something I don't.

To answer your question, you have to do some aspects of it upfront - i.e., before you even buy the deal. That's what we do in every deal that we look at. We consider the numbers after we buy-then -refi the deal (obviously not for flips but for properties we keep). You need to line up the right lender upfront so that when you refi, you know exactly the documentation they need and more importantly, you know their underwriting guidelines.

@Vincent Incopero, sounds good and I am glad that you're doing this. Let's talk OFFLINE as well. I am well connected in the Chicago market and I do deals every single day.

IL specific content that will be useful to the BP community are the following:

1. Landlord-tenant laws - for example, what are the landlord-tenant guidelines in each county, town or municipality? For example, I have landlord license in The Village of Bolingbrook because that's required but Glen Ellyn, or the other towns I have rental properties in don't require them.

2. Impact of Dodd Frank in IL as far as lease options and seller financing are concerned - someone was interviewed in a BP podcast and he gives rent credit when I know DF does not allow that.

3. Land trust - how does it work in IL compared with other states. I know in IL, we utilize bank employees as trustees. Is this really required? I know in other states (OH, FL), this is not required and you can have anyone you trust as a trustee.

4. Wholesaling in IL: the real truth about it - some say wholesaling is illegal but it's not. My attorney does over 700 HUD closings and I utilized much of his time closing some wholesale deals even with HUD. Some claim one should be a licensed agent but...not so...claim others.

5. LLC vs. corps vs. series LLCs - IL charges an arm and a leg for LLCs vs. corps. Does it make sense to get a corporation instead? What about series LLCs (I know in other states, series LLCs don't exist so again, this is IL specific information).

The above are what I can think of right now. Maybe I can think of more when we talk.

 It's not mortgage fraud if the hard money lender knows where the money came from and everything is disclosed. I am not advocating not telling the truth.

For example, we disclose to our HMLs that part of the money is coming from a different partner who is not on the loan and we show them JV Agreeement and they are OK with this.

I already mentioned partnering up on Step 3 as another option. Problem with that having a partner (say who gets paid 50% of the profits) will usually cost more than 12% hard money + 4 points. Of course, that is not always the case - it depends on the deal.

The reason is a mistake on the BUY step. BRRRR works well when you buy properties BELOW market value not at market value. Also, did you buy Property A cash? If not, and if you've bought it close to market value or at market value, that explains why you can't refinance. Lastly, how many lenders have your approached? Different lenders have different underwriting guidelines. Usually, they can credit up to 80% of the rent of a rental property as part of your income so your debt to income should not be affected that negatively and if you've bought the property with some discount, you should still be able to refi.

 Jonathan,

You're very welcome. BP is truly awesome. And what I've found is that it always "pay" to give value to this awesome community. @Brandon Turner, if you need a testimonial on why BP members should provide value - I just wrote one :-)

 You're very welcome Anthony. Have you done a rehab or do you want to do a rehab?

In today's HOT market, finding good deals is hard.

What if my team works for you and finds you off-market deals?

Not only that, what if we even provide FUNDING for you?

If you want DEALS + FUNDING, check out "THE BIG Thing" NOW:

http://www.thediligentwholesaler.com/thebigthing-2/

 Deren,

The deal is NOT a good deal if you intend to fix-n-flip it. The profit is not good enough.

The deal is a GOOD deal for lease option though - $61K profit and you get $10K of that upfront.

Now, to your question - YES, you are right: they need to focus on ONE first- master that entry/exit strategy and then move on to a new one. By doing this, they learn, make money and then have that entry/exit strategy added to their "toolbelt" of strategies.