All Forum Posts by: Chris Davidson

@Marcus Slaughter yes you can if the numbers work. Without knowing your finances and the numbers on the property it is impossible to say. Reach out to a lender and talk about what you are looking to do.

@Thomas Lebens figure out the capital part. creative finance should be another tool in your box of how to get deals to work. But you will still need capital to close deals and for reserves. 

Deal flow will be different for each market, but it all comes down to know who is operating in your market, who the players are, and finding sellers. Best of luck!

@Charles Schram figure out what their issue is. Skin in the game and 5% return at the bank are two different issues. You both need to get to the table and start talking, and letting them know what is up. If you really are putting 300k into a rehab I would address that and should settle the skin in the game. The 5% from the bank is just another hurdle to get over. 

If you don't have anything signed, and they have better offers you are fighting an uphill battle. Best of luck!

@Darsh Patel it is possible just not common. Will have to find a lender who will allow it, and be ready the rates likely aren't going to be great. Also the seller would have to know he is going to be in second position. 

May be worth finding a private debt partner that would lend to you.

@Dylan Wickersham Will your lender allow for the down payment to be borrowed? If not find one that will otherwise it doesn't matter what rate and terms would be for the down payment. 

Can you get a HELOC on one of your single family homes to fund the down payment this would will be easier to do in the lenders eyes. If not what if you do a cash out refi on one of them?

Best of luck!

@David Baye sounds good on paper, and smart plan to ease into the market in case it is not what you are expecting. Like @Charles Carillo said look into non-qm lenders. They have DSCR programs, Bank Statement loans, but your numbers will be slightly different.

Best of luck!

@Carolina Lau look at doing a wrap, and ideally a balloon so you aren't sitting on this thing for 30 years if they weren't to sale it. Reach out to some title companies, investors and folks doing business in your area and ask them questions. Figure out who does them, and any local laws you need to watch out for.

Different way what if you sell the LLC more complicated, but if it only has the properties you are looking to offload selling it could be an option just a much more complicated option for taxes. And this would be pointless if there is a personal guarantee or if it's a recourse loan. Read the loan docs.

@Jared Fracker your down payment is going to have to cover the commissions or the seller will be brining money to the table. If your down payment isn't covering the cost and you are going directly to the sellers agent it is unlikely they are going to push hard for it. You also need to either be really well versed in how sub to works and or luck out that the sellers agent knows. 
Also if the seller is looking to get that loan off their credit it's unlikely they will go for sub to just have to start figuring it out. 

Best of luck!

 Follow your lease. That is what both parties have agreed to and what you legally can do.