All Forum Posts by: Chris Kendrick

 Why would a seller just give you a stabilized cash flowing asset? Why wouldn't they just hold on to it for themselves?

This is an area that maybe frustrates me the most when working with investors, especially new investors.

Do you think someone is just going to HAND you a cash flowing asset? 

Even if you have a ton of money to invest, do you understand that the cap rate is essentially the same as your cash on cash return at that point? Do you realize how low cap rates are in general across the country?

I don't care if you have infinite money to invest or are just getting started, the ONLY way to really get assets to cash flow at a level where they become sustainable income is through VALUE ADD.

Yes, that means purchasing assets that are cash flowing little, nothing, or negative.

Yes, that means investing further cash to renovate the property.

Yes, that means investing time in finding the right tenants and property managers to raise your rent roll.

However, the upside is almost always HUGE and largely predictable if you're willing to put the effort in. The question of whether you're going to succeed or fail comes back to the VALUE ADD. What VALUE do you have to ADD? Answer that question and you might find money for investment much easier to come by, and the road to cash flow a lot shorter than it looks.

 I have a database of over 1,000 lenders and most will do that.

There are national HM lenders that do 100% financing, but they only do them to experienced investors (5+ exits in 24 months and 720+ credit). DM me and I'll tell you a few, as I won't post here to avoid solicitation rules on these forums. They also do them for members of certain groups or franchises. These aren't small companies by any means, one is one of the largest HMLs out there. You also stated, "seller financing is hard to find", so I'm assuming you now agree that it isn't impossible, it's just that you find it difficult to source them. Well of course it is, REI isn't a get rich quick and easy scheme. You either have one of two problems in REI, you either have a lead problem (which you do if you don't know how to source creative or off-market deals and you are reliant upon agents) or you have a conversion problem, which most people do if they don't have a systematized process for negotiating and making cash/creative offers. I strongly encourage you to join your local REIA and sit through every speaker over the course of a year, you will have your mind opened to numerous avenues that are real and replicable.

You can. Nobody said you couldn't. But yes seller finance exists and people do get financing for 10% down. 

REI is guru driven and most are not as successful as they claim to be. Guru's spread falsehoods and do actual real harm to the industry and people who want to build income, assets and wealth.

The term "hard money" is no longer in our vocabulary. It is all private money whether from main street or wall street. Yes it exists. 

 It exists but only for those who learn the strategy behind and have the front and back office systems and processes. Also, stop going to banks. Connect with private lenders. I have a database of over 1,000 of them. 

 It exists but only for those who learn the strategy behind and have the front and back office systems and processes. Also, stop going to banks. Connect with private lenders. I have a database of over 1,000 of them. 

Hi @Chris Kendrick

     I own a brokerage and am a lender, so you are hearing it from a bank. We have originated millions in loans over a decade, all investment loans. You are asking the worst resources those questions, then relying upon their "expertise". 

Can you explain to me why you'd consult a real estate agent or traditional bank about seller-financing? Agents aren't investors. Nor are they lenders and nor are the lenders you are speaking to non-owner occupied investment lenders. And the entry barrier to become an agent is laughable in some states, it doesn't teach them how to be an investor. It certainly doesn't teach them creative financing. You stating no such thing as 0 percent down is comical. Somehow you have the ability to negate numerous transactions and examples from investors across the country? What experience grants you that ability to declare that? Have you done a seller carry-back? Do you know what a silent second is? Have you done sub-to? Have you assumed a mortgage? How many novation agreements have you done? Have you sold a creative deal by doing a wrap? Have all the resources you've declared authorities done those things? Can they define those things without referencing Google? Can you define those things without having to Google after reading my post? I know the answer to these questions and I know you aren't remotely well-versed on these as the BP community is in its entirety. I'm not trying to be combative, I want you to expand your mindset and be open, otherwise you have failed REI before you even got started. I wish you the best of luck.