Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated about 5 years ago on . Most recent reply
Accepted Offer On My First Deal
I am a contractor in the Iowa City, IA area.
I have read books on real estate investing in the past but have never taken any steps towards actually investing. I have been continually trying to get my wife excited about investing to which she has been reluctant. I was talking to her about it a few weeks ago and she asks if I have talked to the bank about any of this to which I said no. She responds with "well you're not really doing anything then are you?". (Smack right in the face with reality)
I joined BP last week and have been listening to the podcast daily and assessing properties every day. I noticed a theme with everyone that is currently investing and a lot of them say to get off your butt and just do it. Well in my first week of getting off my butt I have a bank giving me a draw down line of credit, I found my first deal with an accepted offer, and I have a family member already interested in investing in the next deal I find. Now I'm trying to keep my head out of Lala land since the hard work has yet to start. I have put together conservative numbers on the project and have shown them to my banker and real estate agent.
Moving forward my bank has told me they are willing to fund as many flips as I can do but seem to shy away from the idea of me doing any "buy and holds" or BRRR projects.
What kind of creative financing has anyone done to get into multi-family projects?
Most Popular Reply
Gavin I was running short of of cash to get my 6th property, a 4 plex. I found a local commercial bank that lent me $100K line of credit at 4.75% so I could make the 20% downpayment (only needed $45K of it) and then they'd lend me the other 80%. At closing the lender said, "man we went over the numbers for this place and thought we have to make sure he gets this property! And if he doesn't, let's find a way to get it ourselves.."
Carrollton Bank. No I have a $55K line of credit to use as my next downpayment. I may just let it sit for a few months though; we'll see.
Good luck