Deal Thursday!

I was chatting with a friend last week about the upcoming Real Estate crash (which is already happening in the commercial world) and he said well it’s a stall, as there is still too much demand and not enough supply. Que the band and here comes the supply! (link)

Meanwhile foreclosures are inching up even though banks seem to be doing everything they can to slow down the foreclosure process; offering all kinds of temporary programs to kick payments down the road. If you are struggling on your home make sure to reach out to your bank to ask for ideas.

So what is an investor suppose to do?

• Be very selective about your deals. I believe this is the time in the cycle to gain knowledge and work on your financing/cash position; build your war chest so to speak and wait for the war. There are still some very short term deals with margin, but those are few and far between.

• You really need to find off market deals as there is not enough spread to pay middle men (realtors, brokers, wholesalers). Taking the time to find the deal yourself will pay dividends for you. Use a platform like PROPSTREAM to target foreclosure and pre-foreclosure properties. Propstream can help you get contact info of the owners. (link to free trial)

• If you are a commercial investor or believe you are about to make that jump it is the right time to start looking and learning. Commercial is not out of the woods, but some great locations have seen dramatic drops and buying for long term hold makes it a good time to be a buyer.

• Look for other hard asset investments other than real estate like Gold or Silver. Assets that very likely won’t go to zero like Bear Stearns cough cough. Did you see that Japan (largest buyer of US debt) is selling up to 800 billion in US bonds? Are they going to be able to off load that much? If they can’t what will that do to the banks?

DEALS

• NON REAL ESTATE - Hard Asset deal I like

  • Silver Bond fund closing at the end of July.

  • 12% return for accredited investors

  • quarterly payments/payments made in silver

  • More info here

• West Linn, OR Development Project SHORT TERM

  1. Seeking to raise final 200K to add to our 1.8 million already raised. (500K raised since last email.) 

  2. 1st position loan at approx. 40% loan to value

  3. 6 to 8 month loan (remaining) with 6 month extension

  4. 15% interest to investors  

  5. 80% of lots under agreement 

  6. Reply with interest

• Business Funding (just gathering details)

  • Established business (repeat client)

  • funds used for scaling business

  • 14-15% for investors

  • short term (year or less)

  • min 25k

  • reply if you want to be on list to get info immediately

• purchase of a 297 Bed medical center on 10 acres. The property is located in Missouri.

  • 12 to 15% interest (based on amount invested)

  • 12 to 18 month loan term

  • tenant already in place

  • 100k min

  • reply for more details

• Rehab house loan in Tennessee

  • 145k Arv

  • 1st position lien

  • 30k

  • 10%

  • 6-9 month term