
10 May 2024 | 7 replies
Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.

11 May 2024 | 25 replies
The home you sent in your original post is in North Cape Coral, where there are areas in flood zones and others outside of flood zones.

9 May 2024 | 11 replies
Not to mention I negotiated $105k off from the original contract price.

9 May 2024 | 4 replies
Originally posted by @Dennis Yosco:@Theresa HarrisThere is one property that’s on my block they had split up and built a adu behind their home.

9 May 2024 | 4 replies
You may find it’s just analytically better to keep the original property.

9 May 2024 | 2 replies
They came in a 6.375%, no loan origination fee, etc. and said I can refinance at anytime with no prepayment penalties, seems almost too good to be true.

8 May 2024 | 9 replies
Originally it was 100,000, but amended in the 1980s.

9 May 2024 | 5 replies
This is a way to 1. pay lower origination since you are taking a loan for 100-140k and 2. keep your first note rate in place.

10 May 2024 | 43 replies
@Heather Carrow when you say hard money loan, are you more referring to just a private loan in general, or specifically a short-term/bridge loan (i.e 6-18 months) that is used either for the purchase + rehab or the home, or just the purchase of the home (but on a tight time frame) with an interest rate of around 9%-11% and 1-3% in origination fee?