All Forum Posts by: Yoav Gilad

@Avalon Guenther I'm right outside of Ann Arbor, and there are a couple of great local resources that don't require you to drive an hour away. Check out the Ann Arbor Real Estate Investors Club hosted by Brian Bundesen and the Dirty House Buyers meetup (holds their monthly meetings in Ypsi) hosted by Gerrit Stukkie.

And feel free to contact me or my wife (Marcia Gilad, also on here) with any questions, we're both investors and lenders. I'll send you a connection request. Good luck and nice meeting you!

3 Votes

Ann Arbor, Michigan

Quote from @Sarah Reece:

After a lifetime in residential real estate I'm finally wising up and wanting to diversify a bit and start dipping my toes in the HM/PM space. I've got about $400k to loan and if I can prove my model to myself, I have access to another $1m in cash. I am getting clear on my buy box and hoping to stay local (WA state) with my lending. With all that in mind, I'm assuming that my first step is to create an LLC entity for protection and then have an attorney create a loan package with a note...right? I posted on a local group asking for attorney referrals and got some responses about my plan that made me question if this is infact what I need to do to start as a number of people said escrow will create these docs for me.

What say you oh wise ones with experience? What are my first moves to take action?

Hi Sarah, we started out similarly about seven years ago. Absolutely find a lawyer familiar with HM/PM and do not rely title companies or anyone else. If you know any reputable HM lenders in your area ask them who they use for their docs. The docs are obviously very important, but if they're willing to share any best practices for screen borrowers, it'll be even more beneficial. Good luck!

2 Votes

Quote from @Michael Dumler:

@Yoav Gilad, circling back to my initial questions, with that in mind, do you know of any sites or resources where you can source individuals who have outstanding medical bills or expenses?

Good question! I do not know of any such sites; however, my clients, when talking to a potential seller, listened to their pain points and tried to understand and empathize with their core 'why?' If health issues were mentioned, they tried conveying that selling was preferable to simply losing any and all equity if the property was lost to the bank or county. Additionally, a sale would not affect their credit and having cash would give them flexibility and a stronger tool than trapped equity.

0 Votes

Atlanta, Georgia

Quote from @Joshua Janus:

I give new agents or those desiring to get into real estate lists to call and then buy the deals they find. it works well.

Makes sense! Thank you for sharing!

0 Votes

Atlanta, Georgia

Quote from @Jeff Sherman:

Hello Yoav. Yes, the NPLA site references Pitbull. I have not heard of AAPL but Las Vegas is a fun place too. Maybe I will go to both. Thank you!

Enjoy!

0 Votes

@Michael Dumler, thanks for your vote of confidence, lol. I agree that it could lead to people taking advantage of others, but just because you can take advantage does not mean that you must. Treat others as you would like to be treated, right?

Everything is sketchy or manipulative if you're not transparent. The key is being upfront and trying to find a win-win solution. And no, it's not easy. But if someone needs money to deal with an immediate, major problem, then you're providing, if nothing else, an additional option that they can choose or refuse.

0 Votes

Atlanta, Georgia

Hi Jeff, have you heard of the American Association of Private Lenders (AAPL)? They host an annual conference in Las Vegas, NV usually in early Nov. The event you're referring to used to be called the Pitbull conference and you may be able to find more info googling that.

Having said that, I've only attended the AAPL's conferences, which are pretty much what you'd expect: presentations focused on the state of the market, education for lenders, and new best practices (with some tech thrown in). It's a good place to learn more about servicing software and meet vendors, too. I would likely recommend either event to meet more folks and learn more about the industry. Good luck! Please let me know if I can answer any other questions.

0 Votes

Quote from @Brandon Jensen:

Happy Friday everyone! :)

I am looking for any tips on how to go about getting the green light on getting funded for my first of many fix & flips, I started a LLC a few months back and my credit score is pretty low as I've broke both my legs over a period of time.(healed now) I have someone with a 620 (not the best) credit score willing to help me get into a business loan to try and get around 50k funded so I can use a DSCR loan to get started as id need 20% down. So I was thinking if I could get a small business loan to get my 20% covered and then get into a DSCR loan and be off to the races. Any input, ideas or suggestions on how to get going? Im damned and determined to get going asap and am doing what I need to, to get my credit back up so this is all easier for future flips!

Truly thankful for this group of extremely helpful minds!

Hi Brandon, congratulations on making the decision. Now, comes the hard part. As a couple of others have already said, a DSCR loan is for turnkey properties and is also (typically) a 30-year fixed rate loan, similar to what you would get for your primary home.

I think a short-term fix-and-flip loan would serve you better because, first, the credit requirements are typically lower than a DSCR loan's credit requirements, and fix-and-flip loans will fund a portion of the purchase price as well as some or all of the rehab costs (usually through the draw process).

Right now, saving your cash, rebuilding your credit, and finding both a partner (ideally with a higher credit score AND experience) and lender you're comfortable with should be your priorities. Feel free to let me know if I can answer any other questions. Thank you and good luck!

1 Vote

Portland, Oregon

Quote from @Mohamed Camara:

Nope I'm just getting started in this space and what you wrote gave me some insight!

Glad to hear it! If I can help in any other way, please don't hesitate to reach out. Thank you!

0 Votes

Atlanta, Georgia

Quote from @Tanner Lewis:

In my opinion, very high leverage is not worth it to investors with high liquidity. These are mainly meant for first-time investors with low reserves, and you end up making a much lower profit margin due to the extremely high interest payments.

Agree 100%. However, I think it's worth noting that while the profit margin is lower, your ROI as a percentage, when using Other Peoples' Money (OPM) regardless of whether it's a hard money loan or your parents' trust fund, is higher because your investment is much smaller.

0 Votes

Panama City, Florida

All Forum Posts by: Yoav Gilad

Yoav Gilad has started 1 posts and replied 16 times.

Post: SE Michigan Investors

Post: Looking to Move into the Hard Money Space - Feeling Stuck

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: NPLA Conference - Atlantic City, June 2024

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: NPLA Conference - Atlantic City, June 2024

Post: Fix & flip funding

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: Just starting out close to Panama City, Florida

Yoav Gilad has started 1 posts and replied 16 times.

Rounded Star Post: SE Michigan Investors

Rounded Star Post: Looking to Move into the Hard Money Space - Feeling Stuck

Rounded Star Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Rounded Star Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Rounded Star Post: NPLA Conference - Atlantic City, June 2024

Rounded Star Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Rounded Star Post: NPLA Conference - Atlantic City, June 2024

Rounded Star Post: Fix & flip funding

Rounded Star Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Rounded Star Post: Just starting out close to Panama City, Florida

Post: SE Michigan Investors

Post: Looking to Move into the Hard Money Space - Feeling Stuck

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: NPLA Conference - Atlantic City, June 2024

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: NPLA Conference - Atlantic City, June 2024

Post: Fix & flip funding

Post: Creative deal flow... what are YOU doing to maintain or increase your growth?

Post: Just starting out close to Panama City, Florida