All Forum Posts by: Brian Leonard

What I'd like to understand, is there a strategy (besides wholesaling) that I can use while having access to little to no cash (say the max available cash is $10k).

I would just love to hear from someone with a specific game plan on how to go about doing this. I don't need income from the RE investment to pay for bills, I have that covered with my day job but I have no savings (and no, I don't need a lecture on having reserve funds for myself ;).

Thanks in advance!

Hey Brian!

This is a great question & I hope to help answer it the best I can and with some prior knowledge!

My answer to you would be to find a hard money lender who will lend you more than 75-80% ARV or LTV on a property. They probably will give you an outrageous rate like 15% or something but it'll get you a deal

Here are some numbers my business partner is currently working with

PURCHASE PRICE: $360k

ARV: $650k

REHAB COST: $120k

ALL IN HARD MONEY LOAN $480k

6 MONTHS INTEREST ONLY PAYMENTS AT 15% INTEREST = $6,000/MO

ORIGINATION FEE: $19K (this is the only thing he had to bring to the table)

The rehab is most likely going to be $80-90K but he over shot and asked for $120K on purpose so that he can make the 6 payments from the rehab loan

NET PROFIT (hopefully in 6-9 months) will be around $75K

Hard money lenders want to see that you have some kind of "skin in the game" so maybe tell your hard money lender you can only pay $10K and they might just charge you a higher interest rate. But if you are able to do the rehab cheaper than the $$ they gave you, you can just use the rehab loan to pay for the interest payments.

Hope that helps and if not just ask for clarifying questions!

Thanks, Preston, love this approach of using the extra $$ to make the interest payments, great idea! Adding this one as a potential option.

1 Vote

What's up everyone, I've browsed the forums but I haven't really seen any solid answers here.

What I'd like to understand, is there a strategy (besides wholesaling) that I can use while having access to little to no cash (say the max available cash is $10k).

Thanks in advance!

0 Votes

Quote from @Josh Green:

@Brian Leonard

@Jared Prevost I would recommend reaching out to 27 properties.

Awesome, thanks Josh!!

1 Vote

Saint Petersburg, Florida

Quote from @Mick Pristas:

Hey Brian,

I would love to help you out! I work for a full-service wholesale brokerage getting around 25 off-market properties a month all over Hillsborough, Pinellas, and Pasco! Just sent you a DM

Awesome! Thank you!

0 Votes

Saint Petersburg, Florida

Quote from @Kristina Kuba:

@Brian Leonard

I have connections to a few, sending you a DM

Thanks Kristina! Appreciate you!

0 Votes

Saint Petersburg, Florida

Hey everyone! I've rehabbed a couple of houses and am ready to start doing some more, wanted to get connected to any local wholesalers.

Anyone know any local wholesalers or have any recommendations on places to find wholesalers in Tampa?

2 Votes

Saint Petersburg, Florida

Hi all!

I'm a real estate investing newbie and an entrepreneur at heart. I'm excited for the opportunity to connect with everyone here and all the other locals in the Tampa Bay area regarding real estate investing. Before real estate, I have been in the digital marketing world for over 7 years.

I don't have a ton of info to contribute (yet), but can help others out with online/digital marketing until I get my real estate chops up there with everyone else.

I joined a few REI groups on meetup.com and hope to see some of you soon!

Cheers,

Brian

1 Vote

All Forum Posts by: Brian Leonard

Brian Leonard has started 3 posts and replied 8 times.

Post: How to invest with little to no available cash

Post: How to invest with little to no available cash

Post: How to invest with little to no available cash

Post: Looking for wholesalers in the Tampa Bay Area

Post: Looking for wholesalers in the Tampa Bay Area

Post: Looking for wholesalers in the Tampa Bay Area

Post: Looking for wholesalers in the Tampa Bay Area

Post: Hello from Tampa Bay (Clearwater, FL)!