So Many Deals...So Little Cash

[Anthony Bowe]

So I decided to make the jump into rental properties and in less than a year I am already at 3 doors in MD (1 SFR, 1 duplex). I learned how to self-manage out of state while also being full-time Active Duty Air Force and the seller is looking at selling me more properties all with owner financing (Win!) Problem is I would like to buy a little faster since all I need to do is keep providing down payments to keep building my portfolio but a bit cash strapped.

I created a LLC, opened up a Business CC and Checking account and pretty much doing all the right stuff but the lack of money is killing my momentum. I have even looked into business loans and personal loans just to keep adding to my portfolio but I don't think its smart to keep leveraging my own credit to do so. Also getting business loans is tough when the LLC is not even a year old even though I am already cash flowing. Are there any private lenders/investors willing to work a few deals with me? The seller has at least 50 properties and as long as the down payments are strong enough we are working everything off-market through a title company. I've already analyzed the next 5 properties but willing to share this great opportunity with those interested!

[Nathan Gesner]

Go to the top of your screen and search for Lenders. There are hard-money lenders but they charge higher interest and are typically only recommended for short-term funding, like a quick flip.

Perhaps you can find a commercial lender that would fund purchasing the entire portfolio under a commercial loan?

Maybe you have some relatives with money that can pool resources?

Can you talk to friends and co-works and raise funds for the purchase?

I don't know you from Adam. Maybe you're super smart and have all your ducks in a row. On the other hand, maybe you think you're successful because you don't know what you don't know and reality just hasn't hit you yet. If you're going to continue investing, you need to have some numbers on paper to show exactly what you're getting for a return. If you can prove a 12% return or better,  you should have no problem finding people with money that are interested in joining you.

I would also like to know how you intend to manage these out-of-state as a military member? Things look rosy now but you can't even drive by the property to check on the lawn or see if there's three cars on blocks in the back yard. How will you handle turnover inspections and cleaning? Who's going to market and show the property? Who's keeping an eye on them for lease violations or regular maintenance like landscaping?

I know many, many Landlords that think they're successful and real estate investing is a cake walk...until reality happens. If you get more than a few rentals, you'll need boots on the ground.