All Forum Posts by: Bruce Wilhite

Great job!  I'm 30 minutes south in Hartselle, and I don't see Elkmont mentioned very often. 

 Mike, 

This is where I am now. I own and manage 8 SFRs, 2 duplexes, and an 8 plex and have learned the 8 plex is much more efficient. I have a few acres of land that I believe would comfortably hold 30 units or so, but I am hung up on financing. I've had a market study done and gone through the initial diligence with our city planner, but I have not figured out how to come up with the capital required to get started. I have BRRR'd or used a commercial line of credit to acquire our current properties but a multi-million dollar development is more than I can support. How did you get funding for the 30-unit property? Thanks!

Have you tried cash for keys?  If that didn't work, call an attorney. We use Russ Crumbley. His office is on South Parkway. 

Thanks Kiley, I've considered pulling the cash out by refinancing as I'm fairly confident we've increased the value by that amount, but closing costs seem like a steep price to pay to get our 20K out of the property.  Maybe I'm just being cheap.

Huntsville folks,

I bought my first SFR this fall, and it's been great so far, but I'm having some difficulty figuring out the best way ahead for my second deal. My long term plan is to buy SFH's less than 100k in our area (Hartselle), put a little money in them, and keep them as long-term rentals. We have about 20K tied up in our first project, but it's cash flowing nicely and I believe our improvements created enough equity that we may be able to pull our money out soon in a refi. That said, the idea of paying closing costs to access that money seems like a really steep ATM fee, so I'm searching for options to finance the next project that will allow us to purchase the next house and pay for the rehab using less of our own money. We've looked at a LOC with a local bank to finance the purchase/rehab, but the 80% loan to value means we're still out of pocket more than I'd like. We have been in our primary residence less than 1 year, so I'm not really considering a HELOC as a viable option. I'm trying to figure out a proven, repeatable system that we can use at least once a year but I just can't put the pieces together in my mind. Any advice is appreciated. Thanks!

Thanks for response, Dave.  That’s a lot to digest, but I’ll look into it.  Ideally, I’d like to find a way to do this on my own using the equity we’ll have in the first house or through some creative deal-making with the owner of the prospective house.  

Hi all,

First time poster here.  Excited to be a part of this community!  I've read some of Brandon's books, bought and sold three houses without an agent over the last few years, and set to close on my first rental property next week.  The property isn't expensive, but it has taken all of our extra cash, and I'm curious about how to make the next deal happen now that we have no cash reserve.  We have this property financed with a 30-year fixed conventional loan and put 20% down.  After repairs are complete, the home should appraise for roughly $100K and we paid $67K.  

I've found a FSBO listing for a SFH in our town that sits on a large lot. I've spent some time talking to the owner, who's ready to sell. I feel like a deal is there to be made, but curious about the best way to proceed. It appraises as is at just over $100K and I feel that I can get it for 80K. It also has a large lot that I'd ideally like to subdivide at some point and build another house on to rent as well. His house needs about $10K in repairs, but should rent for about $900/mo when finished. The additional acreage on the lot is worth about $15K.

Other context:  My father in law is also a potential source of financing.  He has about $200K tied up in two houses that are waiting to sell and there may be a possibility of partnering with him on this house as part of his 1031 exchange when they sell.  He's also offered to buy the house, subdivide and build the new one, have me manage the property, and then deed it to me upon his passing.  I'm not crazy about this idea because he's younger and it may not be my asset for 30 years or more.  I'm trying to find a way to either do this myself, or structure an agreement so that I give a partner a fair return on investment while gaining control of the property sooner rather than later.  I know this is a creative group and there's a ton that I don't know, so I'm hoping to learn something to apply to future transactions even if this deal doesn't work out.  

Thanks in advance!