On Building Leverage for multiple properties while working on credit.
Ft Myers Beach, FL · Member since 2013 · 53 posts · 11 votes
Good morning.Wishing you all a great day and an awesome weekend. Looking forward to working with Biggerpockets and building a great relationship with others in the BP community. Just wanted to know a little more about some financing options.
What I would like to do is work on leveraging some capital I already have, in order to purchase a certain amount of investment properties and continue to build a better cash flow and stronger portfolio. I'm sure you are familiar with what I am trying to accomplish here.
The terms of conventional financing would work great for me, such as 30 year terms on a specific loan amount. Under the present circumstances, while I continue to rebuild my credit seems like the HML's terms are kinda of short. I understand a Lil about risks and quick turn around on making your interest in a short period of time.
Let me give you a Lil example and what I am trying to work on.
I know a 30 year loan at a fixed rate for $1MIL would be around $5600-5900 a month. A loan with the same terms at half the amount of $500k would run about $3000-3500 a month. Those terms would work incredibly well, especially with a great credit score, which I'm currently working on.
I'm looking to purchase about 10 properties or less in areas with an excellent market for high rents. Those properties tend to cost much more to purchase. Ive seen one multifamily unit and even just a single family property in an excellent market area bring in as much as $3500-5000K a month. Times that by so many properties and I know you get the bigger picture.
I know all in time with patience, it can be done and I'm determined incredibly to execute this goal. Any ideas or options anyone can offer or probably create to make such a plan come to pass? Possibly someone else who can make it happen you highly recommend that maybe you guys/gals work with also?Thanks. I appreciate your time.
Gratefully,
Ozzy
What I would like to do is work on leveraging some capital I already have, in order to purchase a certain amount of investment properties and continue to build a better cash flow and stronger portfolio. I'm sure you are familiar with what I am trying to accomplish here.
The terms of conventional financing would work great for me, such as 30 year terms on a specific loan amount. Under the present circumstances, while I continue to rebuild my credit seems like the HML's terms are kinda of short. I understand a Lil about risks and quick turn around on making your interest in a short period of time.
Let me give you a Lil example and what I am trying to work on.
I know a 30 year loan at a fixed rate for $1MIL would be around $5600-5900 a month. A loan with the same terms at half the amount of $500k would run about $3000-3500 a month. Those terms would work incredibly well, especially with a great credit score, which I'm currently working on.
I'm looking to purchase about 10 properties or less in areas with an excellent market for high rents. Those properties tend to cost much more to purchase. Ive seen one multifamily unit and even just a single family property in an excellent market area bring in as much as $3500-5000K a month. Times that by so many properties and I know you get the bigger picture.
I know all in time with patience, it can be done and I'm determined incredibly to execute this goal. Any ideas or options anyone can offer or probably create to make such a plan come to pass? Possibly someone else who can make it happen you highly recommend that maybe you guys/gals work with also?Thanks. I appreciate your time.
Gratefully,
Ozzy