All Forum Posts by: Brandon Hicks

I'm not familiar with these programs and was wondering if anyone has experience and/or knowledge of what's available. I see that they have some programs that can go to 85% of purchase price. Would they allow a 2nd on the property being purchased or even allow me to give the seller a note on other properties as the balance of my downpayment after other credits?

Seller financing is the key to low downs for the most part. Im set to close a couple of duplexes that are "no cash down" land contracts in a few weeks. There are a total $5500 in credits that I'll use as my down payment. This is for pro-rated property taxes, pro-rated rent and the transfer of security deposits. Ill be all-in at the time of closing for between $2200 to $2500 for the two of them combined. This is the cost of getting some insurance upfront and the legal and closing fees for closing the land contract purchases.

The deals are out there if you look around and network with landlords wanting to be done with it all!

Im not sure I understand what your goal is and what population has to do with it? I don't really see Indiana as an area making me rich with appreciation. Its more of a "buy and wait for your tenants to pay it off" state.

I own 16 units in Kendallville and 3 in Albion. Kendallville is around 10,000 pop and I believe Albion is under 5,000 pop.

I stay full and get calls nearly every day even when not advertising. The key is to offer a better product and service than your competition in my opinion.

If you plan on staying small, as in less than 50 units, and manage yourself I would keep the properties fairly close to home.

I agree at taking a shot at 100% seller financing and even try for interest only during the turnaround.

Another idea that might work with some banks it to get a new 1st mortgage for the rehab/turnaround and maybe a little cash for the seller. Then have the seller hold the balance as a 2nd mortgage, again shoot for IO. For this to have a shot try to keep the bank in for 40% or less of the purchase amount. Then you can refi once the work is complete and stabilized.

Small local banks have a lot more flexibility when a deal makes sense than a typical broker would. You may even be able to get the bank to go interest only for a period of time as well.

Let us know how it all works out!

Make sure he is building a relationship with a small local bank. They don't have as many silly requirements regarding refi's like Fannie and Freddie (thus the whole market) do.

If you have enough cash to do 3-4 deals at once he can even refi into one new commercial loan with a small local bank for example.

I too, have many tenants depositing their rents into my account. Ive overcome the issue of not knowing who's is who's by having them either write their name or address on the signature line of the deposit ticket. I can then pull up images of the deposit slips online when for tenants that have the same rental amounts.

James Randal's "Confessions of a Real Estate Entrepreneur" is an excellent read and he has some YouTube vids too.

Seems like I remember Jack Cummings having a good one too

$100k is far more cash than most of us start with. Im a gambler who likes leverage so Id pretend I didn't have the cash and try to put together some seller financed deals and learn how to buy with using as little cash as possible. If you can learn to buy with none of your own money, youll be able to do more deals and grow your business faster while maintaining a nice reserve account.