All Forum Posts by: Adam Zach

Quote from @Alex Hileman:

Quote from @Adam Zach:

lots of good books out there on this but I personally boil things down into the following 6 categories. 
1. seller finance

2. Big banks

3. Local banks

4. Hard Money

5. Private Money

6. Partnerships
I would suggest 1, 5, or 6

Note this table is from 2022 so rates are up a little higher...

Thanks for the info @Adam Zach! Can you tell me more about partnerships?

 What would you like to know? I typically use the following language
1. Dating - more of a get to know you and sharing information, maybe work with each other or watch what they are doing
2. Getting Engaged - do a joint venture on ONE SINGLE deal and see how much you like each other
3. Get (business) married - form an LLC for long-term partnerships.

there are various blends of this

lots of good books out there on this but I personally boil things down into the following 6 categories. 
1. seller finance

2. Big banks

3. Local banks

4. Hard Money

5. Private Money

6. Partnerships
I would suggest 1, 5, or 6

Note this table is from 2022 so rates are up a little higher...

Yep agreed. Here is a blank JV agreement that might help you think through some things. I use this all the time on my flip partnering. https://docs.google.com/docume...
Of course use at your own risk and consult with attorney but this document should be helpful.

A helpful document to think through who is doing what. I do joint ventures all the time. https://docs.google.com/docume...

I am a single family guy but would suggest Lee and Jason with KW, Darsh Desai, and Kyle Reedstrom as conversations.

 I used my local bank, First Security Bank (where I live in North Dakota). I did own the home 100% with no mortgages so I was not taking out a 2nd position or anything like that. 

Are you saying no local Tampa lenders will do any sort of HELOC? We do that all the time here.......

I just did an investment HELOC with a floating rate in tampa. Was only a 60% LTV but it is a nice $80K sitting there if and when i need it without paying any interest until i need it.

I found a local bank to do it.

Have a bunch. key piece is are you doing it in your personal name or in an LLC with a commericial loan. Pros and cons to both but this drives the decision and recommendation. I have done both and have home in GF

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $203,000
Cash invested: $42,454

Property #34 on our books for Home Equity Partner. Bought with commercial loan and signed lease at $2,245/month on a lease w/ option to buy with tenant-buyer who could not get a bank loan.

Win for us. With for clients. Win for Investors.

https://docs.google.com/spreadsheets/d/1q_KCkoYKtpC6v7fRUDWOMO1V7mhGUw6I/edit?usp=sharing&ouid=103884306330266848095&rtpof=true&sd=true

What made you interested in investing in this type of deal?

The client. They could not get a traditional bank loan so had no other options. We bought the home for them and gave them the option to buy it back over 3 years

How did you find this deal and how did you negotiate it?

We didnt find the home. The client found the home. We find the people and then they work with an agent to pick any home listed for sale. I think they picked a good one. We care less about the home and more about the person.

How did you finance this deal?

Commercial loan and some private.

How did you add value to the deal?

find a tenant prior to finding a home. Cashflow Day 1.

What was the outcome?

Super good. excited to close on the next 10 we got under contract!

@Bryan Bokusky welcome to the area. There is a real estate meetup and facebook group you could join. I happen to be presenting on "how to find the money" next month Feb 7th. Happy to chat in the interim as well as i have funded deals locally.