All Forum Posts by: Andrew Shelton

Hi, I am looking for a private lender for a business acquisition. This is a turn-key business that is currently cash-flowing. I am looking for up to $200K to finalize the deal. Please send me a PM for additional information. Thanks! 

Loan Amount: $200,000

Purpose of Loan: To finance the purchase of a website that generates revenue of $532,000 per year with a net profit of $312,000 per year.

Repayment Schedule: Monthly payments over a period of 5 years (60 months) at a fixed interest rate of 7% per year.

Collateral: Investment property in Gatlinburg, TN with approximately $142,000 of equity will serve as collateral for the loan. Current estimated appraisal amount: $395,000 with $253,000 remaining on the loan.

Use of Funds: The funds from this loan will be used to partially finance the purchase of the website. The borrower will contribute the remaining funds needed to complete the purchase.

Projected Financials: Based on the revised loan amount and the revenue and profit figures provided, it is expected that the loan will be paid off within 5 years and result in a net profit for the borrower. The investment property with $142,000 of equity as collateral provides security for the loan.

Thank you for considering this loan proposal. We look forward to the opportunity to work with you.

Andrew

@Karim E. Hi Karim, we invested out of state in Gatlinburg, TN. Looking all across the US now. If we do anything here locally it will either be arbitrage or flipping.

@Amanda Thompson There is some valuable information in this thread. My wife and I run an arbitrage business and all of the factors that Joe and Nathan expressed are true. Things you can ask are: 1) How much cash reserve do you have? 2) Do you have a rent:cash reserve ratio you uphold (for example: we keep 3x each units rent in reserves to prepare for any market downturn) 3) Do you have a plan if there are shutdowns or the market slows down? 4) As you mentioned, how do you screen your tenants? 5) What are ways you prevent illegal parties or gatherings?

Obviously I'm biased towards the positives in the industry or else we wouldn't be involved (we own a couple of our own units as well). If they are experienced and have a strategic business plan, they could possibly be your best tenants that you'll ever have.

@Cruz Gartner we make approximately $2500/month net profit on them.

@Keith A. I live in LA and my side hustle is game shows lol. I’ve been on 3 so far and will tape another on August 10th 😃

@Jason Kudo What is considered the high desert?

Hi all, I'm debating on investing in some vehicles to put on Turo. I love the sharing community and think it would be a good fit for us. What has your experience been with this app? Is there a way to streamline the picking up/ drop off process so it's more hands off? How has your revenue been? I saw an ad that a single vehicle averages a little over $10K in revenue a year, but I wasn't sure if that was gross or net. Any insight into that would be helpful as well. Thanks! 

Hi @Cruz Gartner! Welcome to the community. My wife and I bought our first two properties as short term rentals in just under one year. Our income from those two properties allows me to work part-time and my wife is fully retired. We are currently working on starting a rental arbitrage company, so technically we'll still be working, but I won't be working at a hospital as a RN for very much longer (I actually haven't worked as a RN for about 2 months now.) 

@Dan Portka It depends on the property. If it's in a highly sought after area, we may be willing to negotiate a higher rent or do a profit split with the landlords. However, we believe that we actually add a lot of value with our long term contracts, self-completed maintenance, and care for the property so most landlords are satisfied without having to negotiate the above. In some cases we actually get cheaper rent or a couple of months of rent concessions.

Hi @Alex K., I am a LA local as well with interest in flipping. Let me know if you'd ever like to team up on a deal!

To answer your question with my fairly limited knowledge - I believe a strategy is to find dilapidated homes and buy them off-market with cash. You can do this by sending out mailers to a targeted audience or you can set up a robo-call system to generate leads. For your first couple of deals, you'll probably want to look for places that just need some cosmetic repair (paint, flooring, etc.) and make sure you steer clear of any structural issues like foundation insufficiencies. Look for easy value adds. I hope this helps! 

PS I've never completed a flip before, but I've read several books and forum posts.