Comments on: Remembering my days as a brand new investor (Part 2)

By: Mike Sumsky

Mike Sumsky — Thu, 29 Jan 2015 03:38:58 +0000

Hi Terry, thanks for the message. I try to find lenders who want to receive a great, secured return for as long as possible. Short term loans are often more of a headache for the private money lenders that you are interested in finding, since being in and out of deals all of the time means their money is not earning interest consistently. I typically write up notes for 7-10 years on properties I intend to hold, and usually for a minimum of 3 years on properties I plan on flipping. That way I don’t limit my exit strategies if for some reason the house doesn’t sell quickly and I need to rent it. If I end up flipping the property quickly, I try and make sure that I have another project lined up to reinvest, that will keep your lenders happy. I think it’s a good idea for you to have a business packet that you can give to lenders so they understand how your business works and anything that will help display your credibility. Feel free to email me at mikesumsky(at)gmail(dot)com if you need help with a particular deal. Good luck!

By: Terry pappas

Terry pappas — Wed, 28 Jan 2015 13:01:08 +0000

Hey Mike,

Listened to your podcast on BP yesterday And it was great. My partner and I started a business in Chicago land a year ago and brought our first property 6 months ago. We have been looking at tons of different ways to find creative financing for future places and listening to your podcast helped us with some ideas. But we have thrown the idea out to friends and a few family members in past about private money to little fanfare. We recently have been trying seller financing.

I have a few questions if you don’t mind answering.
Did you create a business packet to give to possible investors about your company and yourself?
What length/terms do you give or investors usually like. I know you said 6-7 percent but for how long? We are looking at down payment seller financing and to carry the whole note.
Thanks for your help. Also if you know anyone or you are interested in private money lending for places in Chicagoland, my partner and I can fill you in with all the specifics and provide all our financials. Terry Pappas Reddoorllc13@yahoo.com

By: Mike Sumsky

Mike Sumsky — Tue, 27 Jan 2015 00:22:11 +0000

Hi Gannon, glad you liked the podcast! It’s all about getting into action, focus most of your time on marketing until you’re generating more leads than you can handle. Be sure to connect with me on Bigger Pockets, let me know if I can help in any way.

By: gannon coffman

gannon coffman — Mon, 26 Jan 2015 19:33:21 +0000

Mike,
I listened to your bigger pockets pod cast last night. One of my favorites. Have listened to a lot of them.
I am in a similar position that you found yourself in; 14 months of reading, researching, watching videos and re-reading. Time to take the leap. Great to hear your story.