All Forum Posts by: Dan A.

I left my job at the end of 2020 to focus full-time on managing our family's current investment properties and building out our RE portfolio in the years to come. As part of this change, I am planning to qualify as a RE professional. I am also considering obtaining my RE license so that I can get earlier access to listings, to potentially save on commissions, etc. If I go that route, would the hours that I spend on the pre-licensing coursework count towards the requisite hours to qualify for RE pro status?

I probably should have been more clear - these are loans where the lender underwrites the loan based on the P+L of the property it is lending against rather than the individual's W-2 tax returns, debt-to-income ratio, etc. 

Plus I've only got 3 Ferraris so your approach doesn't work for me!

I plan to refinance after establishing a few years of P+L, which is why I'd rather pay a slightly higher rate w/o the points upfront.

Hey @Joseph Firmin - yes, based on the income that the property will generate. No tax returns or debt-to-income ratio.

Has anyone worked w/ a lender that offers asset-based STR financing w/ no points upfront? No problem if it would require a 20%+ down payment and reserves. I imagine it's like finding a unicorn, but I appreciate any and all leads!

Has anyone worked w/ a lender that offers asset-based STR financing w/ no points upfront and low or no prepayment penalties? No problem if it would require a 20%+ down payment and reserves. Sounds like it might be a longshot based on the convos that I've had w/ lenders so far, but maybe some of you have had better luck..

Fair points, it does sound kind of complicated the more I think about it. Has anyone done a deal with a partnership structure? Would be very curious to know what worked for you.

I would be the sole decision-maker.

I am looking to purchase a STR that would require a larger down payment than I'm able to make on my own, so I may split the equity portion with friends + family. I would be managing the property myself, so there will be a decent amount of sweat equity that I'm putting into the property that I'd like to be reflected in the partnership structure. For reference, I already operate one STR that has been doing well so far so I have some experience as an owner + operator.

Does anyone have experience with this? Here is a proposed structure that I'm considering:

- 8% hurdle rate, so investors receive 100% of the first 8% in cash flow every month

- Anything above 8% is split 50/50 between myself and the investors

- Investors will receive the % of the overall equity in the property that is commensurate with their % down payment

Appreciate any and all thoughts on partnership structures that you have found successful given the info above.

Has anyone actually gone through the process from start to finish w/ one of these companies? Would appreciate any updates.