All Forum Posts by: Wren Martin

@Victoria Jackson I agree with @Joe Cassandra if the deal is good you can get a hard money/private money lender to do it. Some of the institutional lenders are sitting on the sidelines but the true private lenders are still eager to put their money to work in your good deals.

@Darshil Parikh you need to be very clear on your exit plan. Most hard money/ private lenders I work with not do your deal if you have a plan B to live in the property if it doesn’t sell.

@Kalvin Wilburn a Hard Money or Private Money Loan can be just as safe as a conventional. If you’re looking at an Investment Property, having a private money/hard money lender looking at your deal can even be a big benefit. In a way they are partnering with you by putting their Hard Earned money into your deal. They won’t do it if it isn’t going to be profitable and neither should you.

@Gordon Olson yes people post wholesale properties on BP, on Craigslist, and on several other platforms every day. You "Own" the right to purchase the property when you put it under contract. You are wholesaling the right to purchase and not wholesaling the property itself. I recommend joining your local real estate investor association/club if there is one in your area. This will give you another location to wholesale your properties, and it will give you the chance to meet and work with potential local mentors. I get a lot of value out of my membership in the local REIA; I'm sure you will too.

All the Best!

@Gordon Olson you can find plenty of buyers by posting your house on Craigslist and here on BP. Flipping a good deal to an investor is the easiest part of this business. 

The Burnout on MLS may not be the best first deal for a couple of reasons. The fact it's listed on MLS and available for every investor in your market to see, and it's still available tells me it might not be priced with enough room to make a decent profit.

Burnouts can be difficult rehabs, many investors avoid them because they are kind of specialized. There are investors that focus on them exclusively and they have probably already seen this one on MLS and don't believe they can make a sufficient profit.

The best way to find a good deal when starting out is to uncover it yourself. Tell everyone you bump into that your buying houses. Ask them if they know anyone who needs to sell quick. Drive neighborhoods and look for distressed and vacant properties, contact the owners and see if they will sell. Call FSBOs (For Sale By Owner’s) ask them why they’re selling. Let them know you would buy if the price is right. Call on houses for rent, ask if they would sell. Look for vacant lots in built out neighborhoods, you can flip buildable lots the same as a house  

All of the above work may not find you a deal right away but it will get you experience talking with homeowners and potential sellers. You will learn a lot about people and you will be putting yourself in the right position when one of your contacts needs help to get out of a house quickly. 

You will be thinking about real estate every day and doing real estate investor work. Your knowledge and confidence will be increasing at a rapid rate. And before you know it you will do a deal and it will have been both exciting and scary until you’re done and then you’ll realize it wasn’t that bad, fun even, and you will be anxious to do the next one. 

It’s just rinse and repeat. Every day you’re looking for a lead of a potential seller. And you put them on your contact campaign. You’re list builds, you’re experience builds, you try a few things that work and a few things that don’t. You improve and fine tune your business and someday you have a system that works for you and your an overnight success in the eyes of everyone who knew you before but you will know that it took a lot of work to get there and it was anything but overnight. 

All the Best!

@Kristin Zajac a site visit is very common with a commercial loan.  Getting some "Face Time" with your lender should be a good thing.  Remember, at every level, real estate is a relationship business, so the better your relationships, the better your business.

All the Best!

Wren

@Elledge Willis reply to your post with some specific questions about USDA loans, and @Dan Wallace, myself, or more than a dozen others will help get you better information.

All the Best!

Wren

@Richard Merkuris the comment “reporting more than $2,300,000 in 2018 of which they pay a significant percentage rent in addition to their base rent." means the Tenant did more than $2.3m in sales/business last year and they pay the landlord a percentage of that business as additional rent.

You want to see the total income from the property and the total expenses to operate the property. If it's NN or NNN much of the expenses will be passed thru to the Tenant but you still want to see what it costs to operate.  You also want to see the rent roll so you know how much term is left on the leases.  You want to determine the likelihood of the tenant renewing when their lease comes to term and where the current lease rate is compared to current market, and what you anticipate current market may be when the lease comes to term.

All the Best!

Wren

@Ron Mussatto I would not put the property in my personal name for the sake of financing.  There are plenty of financing options for a 12 unit that should work for you without playing the name game.  As @Brent Paul suggests, always get the advice of a competent local attorney who specializes in real estate and follow that counsel over any of us on BP... we are sharing our opinions but cannot understand all the issues at play to give specific advice to your situation.

@Jeffrey Townsend use a non-bank lender that understands real estate investing.  You will not have the seasoning requirement of your DP like you do with a traditional bank loan.