These are truly unusual times in the real estate investing world. The available inventory to invest in is at an all-time low. Today I talk about one specific property that we decided to sell. I cover how we invested, flipped, and sold this property for a great profit.
My newest purchase is in my hometown, just down the street from my old high school, and I am thrilled to be getting back to my roots. The deal structure on this property is absolutely phenomenal, and I’m going to break down for you how our investors are getting a 50.5% return on their money.
I just met with the vice-president of the local regional bank that’s funding my latest $12 million deal, and these 9 questions are what he wanted to ask me. As a private lender, I’ve been on the other side of the loan equation, so I know why he wants to get a good gauge of my business practices. See how I walked him through my thought processes to earn his trust.
As a private lender, I see deals and fund deals regularly. And there are times that a borrower isn’t able to hold up his end of the deal and this can either be disastrous or turn into a great deal for us. This is the very reason why you loan or borrow at 65-70% of the after-repair value. This way, you can turn a private lender loan into a great deal with cash flow and equity.