1 year has passed. Looking for that next step

[Okan Esendemir]

Hey everyone,

I figured it’s time to start networking and seeing what other investors like myself are doing. In 2018 I sold my two rental properties after holding for 9yrs. In 2019 I wanted to try my hand at flipping. I bought a property near me that was a short sale. I thought I had done my due diligence with inspection and contractors, etc. Well my flip couldn’t be done without extensive rehab and structural fixes due to a bigger termite problem than originally thought. So now I was torn spend the money and have a very small spread or somehow build a new construction. Problem is I didn’t have the funds to drop 250k on a 4bed 2.5bath colonial build. So after much research I hooked up with corevest and they funded me 100% of the construction. Wasn’t an easy process at first since I was a newbie with no experience. I however did end up getting my HIC and new builder license in NJ so that helped secure the loan. I ended up getting 9.25 and 2points. Not bad for my first hard money deal. I vetted contractors and found one I really liked. So fast fwd to this yr and I’ve sold that new construction and have another new construction breaking ground as well along with 4 fix n flips which I’ve purchased in the past two months. I secured a couple other contractors who can work on the fix n flips while my original guy does the big stuff. I did forget to mention I do work full time as an operations manager for a large manufacturing company. I have a great agent who helps me with all the little tasks here and there as well as pick finishes for me. I’m also now using 5 arch funding and they’ve been giving me great leverage on the purchase and my rate is down to 8.5 and 1.5. I have not exited out of any of the 4 flips as 3 will be done in April and 1 in the coming weeks.

Overtime I've saved capital but in order to do more volume I'm bringing in an investor to each deal. I'll purchase under my company and then sign a JV/profit share agreement for whatever percentage. Right now I have a different person on each deal. I keep getting requests from friends and family to invest because everyone sees all the action going on but I'm not sure about continuing to bring in other people. Seems like it can get messy. So here in lies my dilemma, what would other investors out there recommend? I really want to grow my business and add more volume with flips and new construction. Even look to subdivide, but this will take more capital and the hard money can only get me so far. I need more creative ways to get financing so that I can get to the numbers I want.