MASSIVE INDOOR COMMERCIAL GROW

[Guest]

quick question..

I was told by a mortgage broker that lenders and the IRS only cross paths when one cannot pay their bills on time.. is there any truth to this? Theoretically if they decided to audit ya.. you would be fucked if you were dumb enough not to have some some kind of legitimate business venture or high paying job to prove your funds, correct?

 

[yamaha_1fan]

Monty I am not doubting you experience IN REI.

I am a newb and have about 3 years experience with a few properties under my belt and I speak from personal experience. You make it seem like the average Joe can go out and finance 10 properties. Its just not that easy. I had to put down 20% on my last property with a mid score of 640. i didnt go to bank of america or lending tree. I contacted numerous brokers that advertise on REI boards and my local REIA.

A couple years ago I refied a rental at 80% LTV only to get to closing to find out I could only get 70%. That time I probably used the wrong broker.

As far as creative loans and sub prime loans, i do believe they are getting tougher to get. Banks are not going to keep doing loans at 125% LTV, interest only or negative amortizing loans when appreciation is no longer 20% a year as it was in some markets. I KNOW FOR A FACT some banks are pulling their sub-prime programs completely due to current market conditions. (Duestche Bank is one that I have personal experience with closing their branch location)

I will admit that i have spoken to investors who have been at it for years. They have told me they are now at a point with their lender that they call, tell them the details of the property, funds needed etc etc in a 15 minute conversation, and then go to closing w/o another peep from the bank. Hassle free since they have a relationship.

As far as the limit goes on 10 properties, I have heard that from several investors. Banks see you holding 10 properties that you dont live in and dont have a vested interest in, they get worried. Will some banks do it? yes? will most? No.

I recently took a house over SUB2 which seemed great. Now as I am closing on the house (selling it), I am finding all the little details I never read about. I'll know for next time

Things can be done, no doubt. Its just not as easy as it seems and theres tons of details that need to be taken care of. Maybe you find it easy since you have been doing it for so long and you know what you are doing. I have been doing this and studying for 3 years so I speak from someone just starting out.

Like I said, you seem to have plenty of experience and good advise. Just wanted to give someone elses view.


On a different note. Hiding proceeds from our theoretical drug dealing is not that hard. On a small scale, car detailing, lawn maintenance, pressure cleaning are all good businesses to hide income. On a higher scale, coin laundry is good. Then on a higher scale, a night club, bar etc are good ways.

Coin laundries would be my favorite as it seems the least hands on. Also in the other businesses, you may be asked for a customer list and it would be hard to explain why you dont have one. In a coin laundry, there is no customer list.

Of course, running the money through a business has its down side. Paying taxes, more child support if thats the case, larger assets if in a lawsuit, etc.

And keep in mind, a good accountant will have your company earning very little after expenses depreciation to minimize taxes. So the business you just created may not help out alot in prooving your income.

Before you run out and start a business, you need to evaluate different structures, (corp, LLC, etc etc) as they all have different pros and cons. For this purpose, I would look at the tax benefits versus the legal protection as its a dummy company and really has no liabilities

 

[Guest]

Thank both of you guys for the replies =]

 

[Guest]

I wish I knew more about real estate... what are those things called at the library? Oh yeah, books... maybe we should try picking some up monty

 

[yamaha_1fan]

wel maybe misleading wasnt the right word. I dont think you were trying to mislead people. Its just the way I read your post made it seem like it was simple. Its not super hard but it takes time to find the right lenders, connections, etc.

When i said 10 properties, I meant in a year or two. I know someone who has some money and they were buying apartment bldgs 8-20 units each every 2-3 months. He got to a point where he could no longer get financing even with down payment and good credit.

I wouldnt bother trying to launder money until it was a considerable amount. maybe 50k?. depends on situation and personal lifestyle. If you blow alot of money on clubs, eating out etc, you could spend alot of your extra money w/o having to account for it. Me? I would wait till i hit 100k before i tried to launder it at least

Like Monty said, this thread DOES NOT EVEN SCRATCH THE SURFACE of REI. google Real Estate Investment Forums and you will have more info to read than you know what to do with

 

[yamaha_1fan]

if running a detailing business or lawn business and you tell the judge you dont have a client list, you are screwed. But I may have jumped the gun here. I think for this thread, the purpose of laundering the money was to prove income to lenders not to johnny law. for lenders, customer list is irrelevant. If johnny law is investigating your fnances you are knee deep in it anyway.


heres a good example of Flipping thats not widely revealed unless you do some studying and lurk on the REI forums. Lets say Jenny lives in NY and inherited a house in TX from her grandma. The house is paid off and in REALlY REALLY bad shape. An investor offers her 25k and she takes it cause she doesnt want to deal with it. lets say investor dumps 75k into the house and the house is now worth 200K 3 months later. There are lenders who wont lend on that property until the investor held it for 12 months. Its called seasoning. the lender cant understand how the house sold for 25 k 3 months ago and now is selling for 200k even though every house in the neighborhood sells for that price. Not all banks do this but the buyer may be pre approved from a lender that wont allow it. so now get the buyer another lender or find a new buyer

just one of the examples the late night TV gurus forget to tell you

 

[Guest]

From the Beginning to the end of the thread, 2.5h.
Ammount of bud smoked, 3 joints.
Information learned in this thread, Priceless.

Thanks to all for the informative read.
Fullmonty,= amazing posts. Thanks for sharing your experience with the community.

 

[Supreme]

Great thread!
I wonder what happened to ourcee? You still there? ;-)

 

[Guest]

But, of course, I was not aware of such, because my experience and directions and circles did not focus on such at the time.....and there were no such discussions such as these...

Damn, I didn't read this until after I PM ya.. but that statement basically sums up why I feel kinda confused right now.. the troubling part is that I am aware of the possibilities, so to speak..

 

[BakedBeans]

Good information wants to be free.

Dang I'm ripped tonight.


My "Big" idea was to invest in mini-storage. Those places are EVERYWHERE, they are secure, and the buildings can look very different. They come in all kinds of configurations including some with tall, multi-story buildings. Nearly all of them have climate control available. If you ran sealed rooms, and did it all right, you could run multiple rooms and run it like a factory, assuming you do everything else right and are lucky. You would really have to have a good network to make something steady and big work though, definitely only one 'hookup' (and a TRUSTWORTHY one at that, like a reputable medical group or something).

Those places have limited access, you control everything. You can even work with city police to insure your mini-storage is free of methlabs and other rif-raff. They give training courses to mini-storage operators. There are associations you can belong to. Get a nice certificate to go on the wall, set everything up spotless and pop some beans!

Configure one of the buildings with a drive-in garage to load and unload. Odor filtration would be a must. You could run underground tubes several hundred yards away from your building and pull exhaust through a large carbon filter. Dump it near the edge of your property, away from everything else.

There are laws protecting individual property at those places and you can be a bastard when it comes to procedure, just in case anything ever happened. If you keep your eyes open and watch for the signs, the minute anything ever happened you can clear shit out. Hopefully your place is not already under surveillance and you have a back exit through the woods or something.


I would never suggest growing inside of a rented mini-storage bay, however. You would definitely have to own the place (or know an owner. ;-)


I'm moving more towards stealth greenhouse designs on pieces of semi-remote property myself. I like polycarbonate panels. You get all the power of the sun (well, most) and you can keep the place a nice 75 degrees. You can convert all kinds of sheds, barns and buildings.

 

[ourcee]

Great thread!
I wonder what happened to ourcee? You still there? ;-)

as always, I've been soaking up the information and learning just like everyone else


my issues have been taken care of to say the least

everything is great and I love opening the door only to see that I need to raise the light again I'm actually going to take a BIG handfull of clones tommorow :wink:



FullMonty I wish this whole subject wasn't so controversial, not to mention highly illegal in most parts of the world. A chat over coffee would no doubt be a very intellectual one. Maybe one of these days years down the line, who knows.

 

[ourcee]

Or maybe a chess game, season of "Wire", couple fatty's, and couple shots out of a couple Asian hotties navals?...(I always try to keep a couple around in case the need arises )

SIGN ME UP!

 

[Supreme]

@FullMonty and other commercial growers
Do you think that growing (or this lifestyle) has changed you as a person? I mean it can be a real ugly world and you too probably have to deal with people that you would otherwise avoid. I guess it requires a certain mentality or mindset that not everyone possesses, and the determination to push through and protect yourself.
I think everyone that has been in this bussiness long enough will start to develop such a mentality.

Take care..

 

[DaDank]

Full Monty Has Left The Building

Full Monty Has Left The Building

It appears that Full Monty has left us.
That's a $%#@! shame.
I was learning so much. Getting quite a bit of inspiration at the same time.
Those of us who profited from his experience wish him happy trails. If anybody hears of Full Monty re-surfacing elsewhere, please give us a shout.
Sigh.
DaDank

 

[Guest]

This thread was probably one big bait trap... hehe..

 

[Julian]

I think if he was around, he would have a very interesting story to tell regarding a recent series and turn of events, and, a lesson to accompany it.

 

[yamaha_1fan]

I think if he was around, he would have a very interesting story to tell regarding a recent series and turn of events, and, a lesson to accompany it.

LOL, I bet he would. maybe one day he'll come back and explain

 

[Julian]

I'm sure the lesson would include information, in general, and allowing a specific person, or people, around you, to possess too much information about any one specific aspect of your overall actions. (The "Cell" approach.) And possibly how sometimes it may not be the best approach.

But in other cases, it may very well be the one thing that protects you in the end.

 

[cdc]

yea i dont think something like this is worth going ahead with

 

[XGovernor]

I dont see any of his replies anymore. So it looks like people are double and triple posting, but its really because most of FMs posts are deleted. I wonder why..