I give up!

[brianb_cobbres]

I have gone out of my way to put together a great team, to incorporate, and to present this new company to various lending institutions for funding but it appears the entire exercise has been a complete waste of time. Traditional lenders like the team and give encouraging reports of the loan applications process only to have the whole thing derailed by some trivial fact. Bunch of uptight corporate lemmings. What it all boils down to is we are talking about real estate investing and most traditional lenders do not fund real estate investment projects unless you already have the money to secure the loan, but if I already had the money I would not, um, oh never mind. We are managing to build up quite a collection of unsecured credit cards.

I am done wasting my time. Damn the torpedoes, full speed ahead.

Cereniti Properties is looking for a few good financial partners to fund rehab projects in the North Atlanta Suburbs and surrounding areas. My team has over 60 years combined experience in all aspects of business management, business development, and construction with a strong accounting background thrown in for good measure. Cereniti is owned and operated by three seasoned professionals with established credit histories and a strong drive to succeed.

Let me just put it out there, I do not want some cookie cutter program that I can get from any one of a thousand different lenders. I know, because I already have proof-of-funds documents from several. I am looking for financial partners that understand what it takes to start up and grow a business and is willing to put together a program that will help us both be successful so we can both make some money. I want partners that want to grow with us, not just be there to make a quick buck.

Are you that lender? If so, I want to talk to you right away. Please feel free to contact me via email at blah, blah, blah

Thank you and I look forward to speaking with you.

[Dan Auito]

Well said Brian! I have stuck this thread for all to see. O.K. T.E.A.M. if you know of a lender that can help here then, send them a link, copy and paste and send them the copy, whatever you have to do just do it. Drag a lender over here or have them call Brian. Enough is enough we can all see that this is a good partnership and an investor with half a brain will be well rewarded for their efforts! Bravo Brian, I applaud your tenacity and believe in your entire crew wholeheartedly. I feel the lender will come. :icon_mega Go get'em gang!

[brianb_cobbres]

Shameless Bump

[Dan Auito]

Boy are you shameless. Heh Heh Heh:SM090:

[JoeC_Cereniti]

Boy are you shameless. Heh Heh Heh:SM090:
Not shameless. Annoying at times but not shameless. :SM045:

I would love to see some responses myself. I have been driving myself crazy trying to get the initial funding we need to get going. We have the expertise to make this a very successful venture. We just need some financial support to get started.

[brianb_cobbres]

Tap, tap tap....is this thing on?



Another shameless bump.

[LeadingEdge]

Brian....

Since you have the teal and the concept and plans why not approach the cookie cutter lender for a typical short term fix. This would enable you to make a quick buck.

Making the buck then entails you taking and putting some of where you are asking the lenders to put it.(N trust with you and your company). Not meaning that as a smart a$$ comment meaning that as a reinvestment of the equity made to show a higher profit line for the lenders to gain some ACUAL validity to this team for the typical lender to see. If they still say no then ITS THEIR LOSS!!!!

Take your profits and buy a shell corporation and use the development of a public company venue to raise capitla to buy and rehabs as speculative as stock investors are they will see the numbers and then you could also use this to your own advantage too. The corporation could buy and show stability for the team BUT as long as you are not manipulating the stock nor lying with intentional fraudulent claims then you should be fine to raise capital this way.

Thats an option which could be looked at. this is also a big step as you have to major approval for decisions and scutiny would be horrendous.

This is just a thought of raising capital to build your teams selling ability to the public or the lender. You could also look into the sector forincorporating your business as an S corp and then doing a private placement if you had a plan and some liquidity to how the investors for the valuation of their stock. This is a hard sell when they want to liquidate their stocks unless you are going to operate the private placements as a buyback guarntee bond where you make them able to be bought back at anytime at a set price at the discretion of the seller (YOUR TEAM)

These are just some free thinking thoughts and please dont shoot the messanger as I am sure you could elaborate or build from these. :SM039: :SM039: :SM039:

[Frank J. Festa, Jr.]

Brian: Do you have a project ready to go? Will the investor hold a first mortgage? Frank

[brianb_cobbres]

LeadingEdge, there are no bad ideas so I have no reason to shoot the messenger, although you are Canadian so...... Any input and and ideas are greatly appreciated.

[brianb_cobbres]

Brian: Do you have a project ready to go? Will the investor hold a first mortgage? Frank

I have held off making any offers until we had all the necessary pieces in place and my day J.O.B. is quite time consuming so I am taking this slow to ensure I can manage the job and investing. Although having a deal on the table will probably get more peoples attention.

[brianb_cobbres]

Let me explain what I am looking for.

I have spent countless hours on the web researching ways to fund REI activities. There seems to be an almost unlimited number of ways to get control of a property but very few ways to actually fund rehab projects for retail sale. An open credit line would be the best possible solution but not easy to obtain as a start-up and even harder when it is for REI. In the end, hard money is probably my best option.

I have read dozens of sites and have a pretty good idea of how hard money loans work, I understand why the programs are set up the way they are, and I understand the important role they play. Hard money is easy to obtain and most lenders offer the same basic programs with the same basic rules. Before anyone asks, I have no problem with the cost of a hard money loan. A few points and 12%-16% interest seems high but is actually quite fair when you consider the benefits and potential profit at the end of a successful project.

I found several programs that have the necessary features, but no single program that has them all in one package. The program I am looking for would roll the points, closing costs (or at least a portion), and the first 3 months interest into the back end of the loan. I am also looking to have a portion of the rehab funds available at closing. I could type 20 paragraphs justifying my request but would rather spend that time finishing our business plan. There are a number of lenders that will roll the points and closing costs, others that will roll some of the interest, and others that will provide a portion of the rehab funds at closing but none that provide all three. My point is I am looking for some flexibility that will ensure we have the necessary cash flow and funds to complete each projects. Maybe I am being naïve but I have to believe there is a lender, or private investor that has the insight, creativity, and flexibility to put together a very aggressive hard money program that will benefit both parties. I am absolutely certain any lender will be impressed with my team, our abilities, and our plans for success. A formal business plan is in the works and will be made available as soon as it is complete.

Give me a call or drop me an email so we can at least discuss the options. Regardless I would like to see some response to this post even it if is to tell me I have lost my mind.

Brian

[Dan Auito]

I'm just going to follow along for now Brian. I would like to review that biz plan when you finish up if you don't mind. I have a feeling it is going to be superb!

[JoeC_Cereniti]

I'm just going to follow along for now Brian. I would like to review that biz plan when you finish up if you don't mind. I have a feeling it is going to be superb!
You give Brian way too much credit. :wink:

LeadingEdge, thank you for the advice. Cereniti is already set up as an S Corp with the only shareholders of myself and the two Brians. We are not currently looking to raise capital through the sale of stock.

[Frank J. Festa, Jr.]

Brian:

In Georgia do the taxing authorities sell tax liens? Also, are foreclosures sold by the County Sheriff?

TIAFYR, Frank

[MichiganMarket]

Going off a book published in 2000. Georgia has tax lein (20% penalty-1 year redemption period), and tax deed sales too. Sales are held the first tuesday of any month as determined by the county treasurer. If your hoping to get the property you may just want to bid on the tax deed sales.

I'm not sure how forclosures work there.

[MichiganMarket]

Reading the question again I see you most likely ment who sells the liens. The Tax Commissioner or the Tax Collector, where there are no Tax Commissioners,handles the sale of lands delinquent for nonpayment of taxes.

[brianb_cobbres]

For the record I did not get a single response to this posting except for some excellent leads from Dan.

Thanks Dan

Since this posting JoeC_Cereniti has gotten us $21,500 worth of unsecured credit cards with more on the way. We will be talking to the a few local and regional banks looking for an alternative to Hard Money. The local banks are looking to re-invest in the communities they serve and tend to be more flexible with their terms. Or so I have heard. We are also now actively looking for our first property.

We are pulling away from the curb, so if you want to come along for the ride you better hop in now.

Brian

[Dan Auito]

Life is tough that way Brian! People want to help but often don't have anything that specifically could help. One of our goals here is to build our membership to say 5000 individuals, this way our chances are much greater of finding a connection and getting the help we request.

I'm always on a membership drive here for that exact reason, I think the fact that this site is completely free and allows many things will help us to grow our network here to achieve our aim at getting the support we need for everyones posts.

Hang in there brother I am trying my best to grow our membership, and I thank everyone else for doing the same!

[entrepentuer]

Sometimes people are the best hard money you can find. they want to in vest in a positive portfolio piece, but just do not know how. I hav encountered some people like that, but are very weary. I ask them to visit the sites on line and take them to the properties and have a detailed expense vs. profit report and they seem interested. No actual ivestors but I keep my head The law is in averages. James you have great ideas keep them coming myabe this can help.

entrepentuer1975@aol.com :praise:

[LUX]

Brian,
Can I check out your business plan? Thanks!
P.J.

[FL Beachgirl]

For the record I did not get a single response to this posting except for some excellent leads from Dan.

Brian


I do know of a lender that can provide all three of what you're looking for, they are VERY expensive however, which is why I wouldn't use them.
my email is beachhomes@cfl.com if you wanna drop me a fast note with what you're looking for in it so I can send you a link back (I'm not sure if posting it here is appropriate)

looking forward to hearing from you :)

Jen

[Firstbase]

Hello everybody,

I was just wondering did you try any websites where you can post your request directly to lenders?
The only one I know of is www.mortgage-investments.com. Maybe
you heard of it maybe not but give it a try. You can find a loan there for any type deal. Having a solid deal may work better but try your hand. Nobody told me about that rule.

[SlumLordMike]

Acquiring financing is definately a snowball effect operation. I remember my first deal where I needed the full loan amount. I had to provide nearly 20 documents proving my background, employment history, pay, assets, property appraisal, etc....you get the picture. Nowadays it is more like an email or phone call.

Me: Alice, gimme some money.
Alice: How much, what's the address?
Me: It's 123 Easy Street & I want full asking price + closing costs
Alice: How fast do you need it?
Me: A week will be fine
Alice: Send me a picture of it.
Me: Okay. Engage the title insurance girls and I'll see ya Monday to close.
Alice: Sounds good. Thank you for your business.

Bottom line: A good track record and good credit gets you through the OPM door. A relationship built with a good lender will make an REI successful.

[brianb_cobbres]

I forgot all about this thread. Time to start it up again.

I have a refinance scheduled for April 3rd. I just called the broker to find out when the appraisal was scheduled.

THEIR PHONES HAVE BEEN DISCONNECTED INCLUDING THEIR CELL PHONES.

[SlumLordMike]

Sweet lending alive!

Would you like a reference to a couple reputable lending professionals? Keyword there being "professionals".

[brianb_cobbres]

Thanks, Any recommendation would be great.

I give up on brokers and am working directly with a smaller regional bank. They have a decent program but have been extremely helpful and have given me alot of good information. And they return my phone calls. Go figure.

[ThreeRiversREI]

I found several programs that have the necessary features, but no single program that has them all in one package. The program I am looking for would roll the points, closing costs (or at least a portion), and the first 3 months interest into the back end of the loan. I am also looking to have a portion of the rehab funds available at closing.

Since this posting JoeC_Cereniti has gotten us $21,500 worth of unsecured credit cards with more on the way.

Dunno if you ever got started or not, but my suggestion would be to talk to one of the hard money lenders that will roll the closing costs & interest charges into the loan and use the credit cards to start the rehab on your first project. As the rehab progresses, get draws to keep the credit cards paid up. Flip it as quickly as you can using programs like Neighborhood Gold to differentiate you from other sellers in your area.

Then do another small project using the profits from the first flip to fund the rehab. Repeat a few times, increasing the size of the projects building up both a track record and profits (read "assets") and you should soon have traditional lenders lining up wanting your business.

I'd love to hear how it works out!

[SlumLordMike]

Three Rivers,

You can read the story in the Carabou Trail thread.

[Burke]

Flip it as quickly as you can using programs like Neighborhood Gold to differentiate you from other sellers in your area.

What is this "Neighborhood Gold" program?

Thanks!

[ThreeRiversREI]

What is this "Neighborhood Gold" program?

http://www.neighborhoodgold.com/

Basically it's a grant program. Instead of giving your buyer a 3-10% discount on the sales price, by routing the money through this program, the buyer receives in the form of a grant from a non-profit organization allowing the money to be used as a down payment.

PRESTO! Instant ability to offer "No Money Down" to your buyers.

Can also be combined with seller paid closing costs (up to 6% of sales price under FHA guidelines) which can take care of the escrow accounts for insurance and taxes for your buyer, and possibly even provide 1 or more points to buy down the insurance rate.

My standard package to offer to a 1st time home buyer is a 5% down grant, 5% closing credit, and a "free" home inspection/warranty package (paid through the other allowed 1% at closing).

I also make sure all my buyers are aware of Energy Efficiency Mortgages that can be combined with most purchase mortgage programs.

http://www.pueblo.gsa.gov/cic_text/housing/energy_mort/energy-mortgage.htm

[Burke]

Thanks for the refresher! Now I remember hearing about that program before.

[Aldo]

Carefully review all grants. Most have more strings attached than a parade of puppets. Many grants require:

1) Annual inspections by local code enforcement authorities as well as an inspection for LBP hazards which may require abatement.
2) The property must be owned for five additional years or, if less, the grant must be repaid in full.

Just some things to consider.

[ThreeRiversREI]

Carefully review all grants. Most have more strings attached than a parade of puppets. Many grants require:

1) Annual inspections by local code enforcement authorities as well as an inspection for LBP hazards which may require abatement.
2) The property must be owned for five additional years or, if less, the grant must be repaid in full.

Just some things to consider.

Fair enough. Neighborhood Gold (www.NeighborhoodGold.com) is different though in that it exists really just to characterize a "3-10% kickback from the seller at closing" into a "gift from a non-profit for down payment assistance" for which the seller agrees to also pay a small (roughly $400 administrative fee) to Neighborhood Gold.

So instead of discounting the price, the money can suddenly become the down payment a 1st time home buyer (or other marginal buyer) needs to qualify for the mortgage. And the amount of the grant is even negotiated between Buyer & Seller and Neighborhood Gold is simply notified what the amount will be!

No hooks. No "gotchas". Nothing. Except the small fee charged to the seller above and beyond the amount of the grant.

[Aldo]

Gotcha. That sounds like a great program for those willing to contribute something to those who need a little help with buying a home. You appear confident that Neighborhood Gold is upfront about details which is uncommon with many (most?) grant or low-interest loan programs, especially those having any government involvement, whether local or otherwise.

[ThreeRiversREI]

Gotcha. That sounds like a great program for those willing to contribute something to those who need a little help with buying a home. You appear confident that Neighborhood Gold is upfront about details which is uncommon with many (most?) grant or low-interest loan programs, especially those having any government involvement, whether local or otherwise.

Neighborhood Gold has no government involvement beyond having been designed to meet the requirements of government insured loans. Basically, somebody noticed a loophole and set Neighborhood Gold up to capitalize on it. (ie, a non-profit can grant down payment money, but a landlord can't, so they act as an intermediary)

Program has been around for several years. I just see it as a viable alternative to discounting for a quick sale. Which is not to say I don't advertise a couple of different ways and then work with the particular buyer to meet their needs (in getting financed) so they can meet MY need (to get paid).

And since it's a tool that's available nationwide, it's one that any investor selling property should have in their bag of tricks. Won't always be necessary, but can make some deals happen that wouldn't otherwise.

[welowe]

I have gone out of my way to put together a great team, to incorporate, and to present this new company to various lending institutions for funding but it appears the entire exercise has been a complete waste of time. Traditional lenders like the team and give encouraging reports of the loan applications process only to have the whole thing derailed by some trivial fact. Bunch of uptight corporate lemmings. What it all boils down to is we are talking about real estate investing and most traditional lenders do not fund real estate investment projects unless you already have the money to secure the loan, but if I already had the money I would not, um, oh never mind. We are managing to build up quite a collection of unsecured credit cards.

I am done wasting my time. Damn the torpedoes, full speed ahead.

Cereniti Properties is looking for a few good financial partners to fund rehab projects in the North Atlanta Suburbs and surrounding areas. My team has over 60 years combined experience in all aspects of business management, business development, and construction with a strong accounting background thrown in for good measure. Cereniti is owned and operated by three seasoned professionals with established credit histories and a strong drive to succeed.

Let me just put it out there, I do not want some cookie cutter program that I can get from any one of a thousand different lenders. I know, because I already have proof-of-funds documents from several. I am looking for financial partners that understand what it takes to start up and grow a business and is willing to put together a program that will help us both be successful so we can both make some money. I want partners that want to grow with us, not just be there to make a quick buck.

Are you that lender? If so, I want to talk to you right away. Please feel free to contact me via email at bblasius@cereniti.com or by phone at 678-907-4910.

Thank you and I look forward to speaking with you.

Brian Blasius
President/CEO
Cereniti Properties


Brian,

At the risk of posting a forbidden ad, we will be happy to try and assist you. Investor purchase and rehab loans are our only business.

We make short term loan to investors who purchase and rehab existing single family homes for sale or lease in 27 states including GA.

We loan up to 100% of cost plus repairs, not to exceed 65% of the After Repaired Value. Loans from $32,500 - $500,000.

For full program details, including FAQ’s, online pre-approval and application, please visit www.pleaseclose.com/welowe or give me a call.

William Lowe
InvestWell
972-889-7323 X140
welowe@umth.com

[Dan Auito]

William, feel free to elaborate. It's not an ad it's valuable information so go ahead and lay it out.

[brianb_cobbres]

William, feel free to elaborate. It's not an ad it's valuable information so go ahead and lay it out.

Pleaseclose or investwell is your typical hard money lender. I looked at them a long time ago and chose not to use them because I could get the same terms from local lenders. I like the idea of having someone I can reach out and slap when necessary.

The pleaseclose piece is really just affiliate marketing or something similar but it all leads back to investwell. I think it was this company that was at one time chosen as Homevestors primary HML.

Nothing bad to say about them, really nothing to say about them at all except they were easy enough to work with and get a preapproval letter from when I was just getting started. They are worth talking to.

[Aldo]

.....somebody noticed a loophole.....
Okay, but do what you can while you can because the govt's Loophole Police are standing by with a supply of corks. While Neighborhood Gold may be operating legally, they are not operating as intended by law. I like the program but I don't like what I see for its future.

[tobyjensen]

"I like the idea of having someone I can reach out and slap when necessary."
Brian, lenders will not be treated like this.

Brian, the problem is that all you have is an idea. And there are a million ideas out there.What differentiates you from the thousands (no, I am not kidding.) of other fix and flippers out there?

I recently had to turn down a $5 million request for a line of credit for a fix and flipper because the borrower couldn't get the money returned in 30 days or less. Quote from my investor, "the borrower will take 3 to 4 months to pay me back! Forget it. It's too risky. I have dozens of fix and flippers promising to pay back in 30 days or less!"

Why would an investor want to put their money into the riskiest form of real estate - a fix and flip? Well, maybe not the riskiest but it is high on the list.

What is your track record?
How many people are you networked with?
Can each put in a thousand or five thousand?
Can each get an advance on their credit card?

Remember, Donald Trump grew up under his father's real estate business.
He inherited himself into an already built business. And Trump still files bankruptcy more times than I can keep track of.

[brianb_cobbres]

So yeah, I started putting together a detailed response when I just did not feel like starting another debate. The crack about slapping lenders was a joke meant to point out it being easier to have direct contact with a lender. That said, there are more than a few that need a good slap and I really dont care if they like it or not.

Beyond that, meh....