All Forum Posts by: Andrew Nesbitt

Market analysis.  Our largest Location is in council bluffs.  

Do a google search in council bluffs and then Omaha for self storage see how we do.

Then do a search on Sparefoot for council bluffs then Omaha, see how we do.

Let me know your town and location name and I can do a market and competition analysis.   

@Bruce Lynn

Bring your own lawn chair. Let me know how many and when.  

All the big costs are covered. The niece will manage and my uncle/ her grandfather is 20 minutes away.  Add $12,000 per year.

Security. All covered in the security package.  Will wake her up at night. Police station is 1 mile away.  

• Hard money loans are short-term loans secured by real estate property.
• The loan amount is based on the property's value, typically up to 70% of its appraised value.
• Interest rates range from 8% to 15%, higher than traditional bank loans.
• Approval and funding are usually quick, often within days.
• Borrowers with less-than-perfect credit scores can qualify, as lenders focus more on the collateral value.
• Repayment periods are shorter, typically ranging from months to a few years.
• Interest-only payments are made during the loan term, with the principal paid in a lump sum at the end.
• Hard money loans are commonly used by real estate investors for property purchases, renovations, and time-sensitive opportunities, or by individuals facing foreclosure or needing temporary financing.

You're usually going to a community bank or a private individual to finance those deals. The reason that lenders like us can't is that we're paid on percentages, so when we get much below $100K, the revenue from the deal doesn't clear our costs by much. We struggle to hit revenue targets below $100K. 

I have a 2 bed 1 bath in North Linden single family home, with a yard, in the 43224 area. How much rent can I get for that area? I wanted to get an idea, right now I know I'm charging under market rent, but I'd like to get a range here. 

I'll answer your question directly about loans and then I will tell you the different way that we did it. 

There are really two main ways to borrow for investment real estate...the conventional route like you do when you buy your home, visiting a bank (which hates to lender to smaller investors), and the types of loans that we do. Lenders like us are backed by private equity funds and we lender to those building rental portfolios (or onsey-twoseys), fix-n-flip, ground-up investment construction, and multi-family finance. If you're just buying one or two and you have strong income from employment or another business, then the conventional route is the way to go. If you don't have a lot of income outside of real estate, then people like us are great because we cash flow the project...not your whole financial picture like convential financiers do. That being said, regardless of the capital source, we're all going to want to see skin in the game. No institutional lender that I know of is going to do 95% financing on an investment property. 20% to 25% is the norm. 

Now, here's now we did it. I had worked in banks for years...in mortgage, commercial lending, and private client...so I had built a very strong, formal credit background. I had financed many, many different people that became affluent from real estate while I never got started. I also have a wife that designs, builds, and renovates homes for other real estate investors. We had the skill-set, but not the capital. Through my old banking contacts, we gathered a handful of my old clients together that each ponied up $50K - $250K to put together a small "fund" (not really...just an LLC) to provide the equity capital while I used my connections in lending to obtain leverage. Once we had a few deals under our belts, we could stand on our own.

You can get creative, but if you can't do the 20%-25% down, take stock in what you bring to the table and do well. Partner up with someone with some capital that lack's your positive skill sets and do a few deals together until you can stand on your own.