Zero Down, does it really exist?

[Naz Hossain]

I heard on a BP podcast that there was bank in Alaska (lending locally) who lends on appraised value of a property, rather than the purchase price. Do these type of banks really exist? Where they will cover 100% of cost/purchase as long as it below a certain percentage of appraised value? Are there lenders out there who might come close? There is a property I am looking at very closely that has a lot of margin but will be a rental purchase. Shooting my shot here

[Sam Yin]

@Justin Gottuso

Yes, it is under contract for 1.11M on conventional/1.1M on hard money. As for the calls, there is no charge, it part of the commercial real estate business. I established a good relationship with this agent. We closed on an 8plex a few months ago. I was in escrow on a 10 and 8 plex with him as well where I backed out after the inspection reports. We talk on the phone about 2times a week.

As for down payment on this particular deal, I have savings to cover. However, I'm in a 1031 on an SFR that should close prior so the savings will stay put.

I did not need reserves for this deal or the last 2 that were under contract. I did for thr first 8plex I purchased. I sent in a resume to the lender and based on my current portfolio and experience, they did not require reserves or professional management company.

I work full time at a job for 19yrs. I run a motorcycle business on the side for over 20 yrs. I buy and sell on OfferUp and Ebay occasionally. I also have a part time job teaching motorcycling at the local college, a few days a month. I have 3 young kids. When I came to America, I did not speak English and I failed most of my classes in school for the first 4 years until one day English clicked. Like I said before, if I can do it, anyone can.

As for my goals, it hard to say because it evolves with my knowledge of real estate. I am very new to this investment journey and I am learning daily. My original goal was just to have 5-7 small properties and pay them off quickly so it can support me in retirement and each kid can have one house to live and one to rent. My current goal is to learn more, rinse and repeat, try to build a personal portfolio of 100 units in the next 3 years and 500 units in partnerships in the next 5 years and generate at least 30K/month in cashflow.

I'm not sure it that will ever happen. But I'll keep trucking along. So far, in the last 12 months I acquired acquired 14 units and under contract on this 10unit. As of yesterday evening, I'm negotiating another 10unit using owner owner financing with 15% DP. It was on of the properties I backed out of a few months back. Now I'm asking the seller to drop 50k in price as well.

Don't get me wrong, I am very conscious of work life balance and I make sure my wife gets my personal attention and each kid get daddy time as well as entire family time, whether they want to or not. It's what this whole hustle is for. If at anytime i feel it has cause a negative rift or impact on my family, I would cut it all out. I am willing to throw it all away if it did not work for my wife an kids. I have cut back 80% on the motorcycle business and 80% of the college teaching to focus on real estate. I keep my full time job because it pays well and offer good benefits. My wife works full time and spend all her money on woman stuff and raising chickens and such, but it makes her happy.

To give you perspective, we were camping on the beach the last few weeks and the deals were done on the phone as my kids were boogie boarding. I take the summer off with my kids school schedule and we hit the road.

Hope you picked a few things out of it. From what I have read from others and from the podcasts, there are so many ways to make moves in this game. You just have to pick one, or two, and ask questions. There are no secrets. I learned all this from YouTube.