For those of you who have the Motherload Resource Directory for 2018, you'd notice that when you received it, you have instant access to my investor partner to submit loan requests or property deals effective yesterday, September 1st. Please note that one of the two investors that are part of this team that I'm working with is based in Houston, Texas. They had lost power and Internet services. And his office was a little flooded. Not too bad but bad enough that it's going to take a bit of work to get it back into functioning order.
Keep submitting your deals anyway. They'll get to your loan requests and partnership deals but they told me to tell you guys and gals that they'll be a delay in 2 to 3 weeks. Because of this, they'll be extending loan requests and partnership deal submissions a full month on top of what you'll see on the sheet (the one that includes the Member's Only user name and password to submit deals)...extending it from the end of March to the end of April 2018.
Pretty good deal, isn't it? I think it is, especially since these guys have done over 300 deals and loans with my students in just a little over 1 year. And that's quite significant considering that my other investor partners will do anywhere from 6 to 12 deals with my students in a full year!
This means that you can keep submitting deals and loan requests and you now have until the end of April to submit your final requests.
Now, for those of you who have been submitting deals, let me give you a break-down as to how this process works in case there is ANY confusion.
1) You'll submit your loan request or partnership deal through an online form AFTER you enter your user name and password to your Member's Only site. Some people who decided that they didn't want to get the Motherload Directory of 2018 have been trying to "break in" to the site. The problem is...I give a list of new students to my investors EVERY FRIDAY. The list contain's the student's full name, email address, and phone number as well as their city/state location in the country. (I do this in case they are seeking out deals in a specific area of the country; this allows them to CALL YOU DIRECTLY if they want to work with you on doing partnerships, deal groundwork, etc. because you are in a city they are doing deals in.) So, for those of you trying to "break in," you can't. You have to be on the list otherwise they won't accept your deal or loan request at all.
2) After you submit the initial 1-page online application, you are then given an IMMEDIATE set of instructions on what you MUST provide to my investors within 7 days. Yes, it MUST be emailed to them within 7 days or they automatically delete your loan request or partnership deal OUT of the system on the 8th day. This would be before they even build a file. They don't print out your application or move forward with anything until they get that second requested component within 7 days. Once they receive it, they print out your application AND the components you were required to email to them within 7 days and they create your file. Now it becomes a physical file (instead of just online). Then, an assistant (by the name of Abel J.) goes through your file of your submitted deal or loan request and matches up the criteria as defined by the two partners running the investor-partnership firm. For property deals, they make sure the CURRENT CAP rates are at 9% or higher (and NOT based on proforma numbers UNLESS it's an REO deal). They make sure the expense ratio matches reality. (For example, if you're telling them that the expense ratio on a 100-unit apartment building in Chicago is only 25% against the GOI then they'll throw out the deal knowing that this simply isn't possible and defies all logic.) They make sure the numbers seem real. (For example, if every listed expense is an exact number such as $500, $5,000, $10,000, etc. then they will assume that they aren't real numbers because NO property or business has EXACT numbers like these on every single expense unless you're making it up.) If they're not, the deal gets thrown out. And they WILL NOT notify you UNLESS they want to move forward with the deal. They don't have time to notify people, especially since many will just try to argue about why the deal is so great instead of just looking for a new deal.
3) If they like your deal, they WILL contact you with further instructions. DO NOT put the deal under contract before submission otherwise it won't be accepted due to their desire in negotiating LOWER on the price than what you may have already negotiated. For real estate deals, the further instructions are asking for 3 years or income and expenses while submitting an LOI and confidentiality agreement to get these numbers. They will also ask you to fill out a more in-depth application to get more of a background on you, especially if you are going in as a partner on the LLC. They will want to know if you have bad credit that will infringe upon getting a good mortgage at attractive rates. If you do have poor credit, BE HONEST. They'll just leave you off the LLC and have something called a "private agreement" in writing with you so that you can get your piece of the action without actually being in the LLC until AFTER the close of escrow. If this is a loan, they will want some background to make sure that you didn't just get out of prison for armed robbery or that the money really isn't for setting up a meth lab in the desert.
4) Once everything checks out with both yourself and with the deal, a number of things go on simultaneously. The property will go under contract. They will request a loan (on a larger partnership) from their go-to lender OR they'll just cash it out (on smaller deals, usually REOs). Escrow will close and you'll get to work as per the partnership and operating agreement that you would have signed during the LLC set-up phase. (And yes, they will become part of the LLC if you are getting money for business too; they will want to be PART OWNERS of the business as well to ensure that they get their cut and/or their money back. Once you pay back the loan, many times they will release the LLC back to you solely or they will stay a smaller-share partner, depending on what you negotiated with them in the beginning.)
And that's how it all works.
So, for those of you who haven't been following instructions within that 7-day period and have been wondering why they're not accepting your deal, FOLLOW THE INSTRUCTIONS otherwise they won't do a deal with you. Period. It's their money so they have the right to lay down the rules; you don't get that option. And if it was YOUR money on the line, you'd probably want to get some type of numbers, business plan, or SOMETHING to show where the money is going, right? Right. Listen, if you're not willing to give them the stuff they want then you're not going to get what YOU want out of this. They are certainly not obligated to give you the money for anything or do a partnership, ESPECIALLY for those of you who don't want to complete the process.
Listen, there are A LOT of students who have taken these guys up on their offer to do partnerships and small loans. They followed the rules. They got what they wanted. That can be YOU TOO if you JUST FOLLOW THE RULES. No, it's not hard. No, it doesn't take a long time to do or a rocket scientist to figure it out. But it does require effort.
For those of you who didn't get the Motherload Resource Directory for 2018 that includes this set of investors as well as OVER 100 other sources for unsecured credit and loans as well as low LTV mortgages for property deals, CLICK HERE NOW!
See you at the top!
Your mentor,
Monica Main
P.S. In light of Hurricane Harvey and the disaster in my investor-partner's stomping grounds, I will be donating a portion of the money from all Motherload Resource Directory for 2018 purchases to the Red Cross to help the efforts in Texas.
