All Forum Posts by: Chad Kilgore

Hello! I've got a question about some title info on an auction property I'm hoping someone can help me out with. I've attached the pictures of the documents pertaining to the title that were included in the listing. So I have a couple questions. Should I get an additional title check from a pro company? What on these documents would raise concern for you? Any and all help is appreciated! 

Ok so here is an update and a few questions as well. We've got an opportunity to buy 7 fourplexes all the exact same construction. Knowing we're going to need about 385k for a down payment we've been throwing some ideas around as to how to get a down payment. (We want to go through a bank to finance the rest. )

 Our first idea was to raise the down payment money from a few investors and don't take any money ourselves until they're paid back + 10%. At that point they would drop to a 10% investor in the deal with no money in. We would get a bank loan(s) to finance the rest. (Not sure how the text got bolded here). So really I'm asking for input on how you would structure this deal? Knowing we want to pay off the investor money as quickly as possible. I'm all ears as I'm new to syndication as well. 

We don't have official numbers yet on the additional 5 units so we're just speculating options. Based on the first two units we could expect pretty close to 7k/mo in cashflow between the 7 units. 

@Kerry Baird I have done this and unfortunately he does not have any interest in this. So, I am thinking I'll try and raise the money through family. They're more than supportive and will offer help any way they can. 

@Ola Dantis I completely agree! The value on this forum is unreal! It's been a huge help to me so far in my journey. 

I will keep you guys updated!

These are all great ideas. I guess we just assumed being an older seller he wouldn't want to owner finance. But we were still definitely going to ask. I believe he actually built the units himself in 1988 so you could very well be right about the depreciation schedule. 

I'm sure we could negotiate something along those lines as well. Just from speaking with him he seems like he's getting close to ready to be done with the business. Which could turn out to be a great opportunity. Thanks again!

Thanks for the reply @Joel Owens. Each unit is fully occupied and has been for quite some time. They're both in a good location, the owner is reaching retirement age and has over 200 units and is just looking to downsize a bit. In fact they're not even listed we just happen to know the guy and asked if he'd be willing to sell. 

The interest rate a couple banks gave was 5.5. I've been running our numbers assuming 6%. At 6% interest we're at 1.67 with very conservative numbers. 

I will definitely do more homework with lenders. I will also do the stress test you suggested. Your input is greatly appreciated! Thanks so much. 

Chad

Ok guys here's our current situation.....my partner and I are wanting to buy a couple fourplexes. We are both self employed but show very little on our tax returns. So a 30 year mortgage is going to be out. (We spoke with some lenders today). They did however say we could get a 5 year mortgage with a balloon payment then obviously we make a huge payment, sell, or refinance at the end of 5 years. Just curious what the general consensus is on these? 

My second question is we're going to need around 100k for a down payment we've got about half of that between the two of us. I was curious if anyone had a good strategy for raising the rest of the down payment?