All Forum Posts by: Chris Thomas
Chris Thomas has started 6 posts and replied 9 times.
Post: Options to partner with investor
- Investor
- Columbus, OH
- Posts 9
- Votes 6
I currently have an LLC with a partner and we fix up multifamily homes and keep them long term. We are looking to bring someone with money to fund our deals, but don't want them to have a percentage in the existing LLC. Is there a way to merge our existing LLC with this new partner just for acouple of deals or would it just make more sense to create a new LLC with all 3 of us?
Post: How to Find Private Money/Structure Terms and contracts
- Investor
- Columbus, OH
- Posts 9
- Votes 6
Quote from @Chris Seveney:
Quote from @Chris Thomas:
I am looking to expand my portfolio, but am short on funds and want to start using other peoples money. Where/who can I go to for down payment and reserves to qualify for hard money and DSCR loans. And once financing is secured how are contracts written or are LLCs created for each partnership with % ownership. Just trying to learn how involving partners is done.
Post: Anyway to Search County Records For Only Multi-Family Zoned Properties
- Investor
- Columbus, OH
- Posts 9
- Votes 6
Quote from @Chris Seveney:
@Chris Thomas
Where would datatree be getting their information from?
Use a site like Datatree and it can run stuff like this for you
It’s not cheap but it’s simple to do
Post: How to Find Private Money/Structure Terms and contracts
- Investor
- Columbus, OH
- Posts 9
- Votes 6
I am looking to expand my portfolio, but am short on funds and want to start using other peoples money. Where/who can I go to for down payment and reserves to qualify for hard money and DSCR loans. And once financing is secured how are contracts written or are LLCs created for each partnership with % ownership. Just trying to learn how involving partners is done.
Post: Anyway to Search County Records For Only Multi-Family Zoned Properties
- Investor
- Columbus, OH
- Posts 9
- Votes 6
Is there anyway to search online through county records or other means to find the addresses of every multi family zones property in an area? Im trying to find every single address of multi family properties not just ones for sale or recently sold.
Post: How to purchase/fund an investment property under an LLC
- Investor
- Columbus, OH
- Posts 9
- Votes 6
As the title says, I'm just curious how to go about purchasing deals and securing funding under an LLC as to not have investment properties in my personal name. Any and all information is appreciated!
Post: Using Hard money upfront then converting to DSCR loan
- Investor
- Columbus, OH
- Posts 9
- Votes 6
Quote from @Jayson Cain:
@Chris Thomas - I've been both a lender and an investor and here are the basic steps you can follow:
- Find a Hard Money Lender: Start by identifying reputable hard money lenders who specialize in financing rehab projects. They will assess the property's value based on its after-repair value (ARV) and lend you a percentage of that value to fund the purchase and renovation.
- Secure the Hard Money Loan: Once you've found a suitable property, submit your application to the hard money lender and provide the necessary documentation, such as the property details, rehab plans, and your financial information. If approved, you'll receive the funds to purchase the property and begin the renovations.
- Complete the Rehab: Use the hard money loan to finance the property purchase and carry out the necessary renovations. Ensure that you stick to your budget and timeline to maximize your returns.
- Get a New Appraisal: Once the rehab is complete, hire an appraiser to assess the property's value based on its improved condition. This appraisal will be crucial when transitioning from the hard money loan to the DSCR loan.
- Apply for a DSCR Loan: Contact lenders who offer DSCR loans and provide them with the updated property appraisal, your financial information, and any other required documentation. They will assess the property's income-generating potential, such as rental income or projected cash flow, to determine your eligibility for the DSCR loan.
- Convert to DSCR Loan: If approved, the DSCR loan will replace the hard money loan. This type of loan considers the property's income potential and cash flow to determine the loan amount and interest rate. It allows you to secure long-term financing with potentially better terms and lower interest rates.
Remember, each lender may have different requirements and processes, so it's essential to research and compare multiple lenders to find the best fit for your needs.
Reach out if you have any additional questions from the steps above. :)
Post: Using Hard money upfront then converting to DSCR loan
- Investor
- Columbus, OH
- Posts 9
- Votes 6
I’m trying to understand how to go about purchasing properties that need rehabs with hard money then converting to a dscr loan after the rehab and new appraisal have been completed. If anyone could layout some basic steps on how to do this it would be much appreciated thanks!
Post: First investment property purchase
- Investor
- Columbus, OH
- Posts 9
- Votes 6
Investment Info:
Small multi-family (2-4 units) buy & hold investment.
Purchase price: $220,000
Cash invested: $10,000
Deal was brought to me by a family friend who is also a partner on this deal as they brought it to me but couldn’t finance it. He is a very good contractor and helped remodel the entire place with no labor costs as he has equity in the deal.
What made you interested in investing in this type of deal?
I have been interested in investing in multi family since 2018 when I started college and wanted to figure out how to make money outside of a 9-5 job. This property was the perfect start in my eyes
How did you finance this deal?
This deal was financed with an FHA 203k loan which was a nightmare to go through with but after 8 months of set back after set back we finally closed April 2023
How did you add value to the deal?
We completely remodeled a unit that had plumbing issues which caused the concrete floor to sink.
Lessons learned? Challenges?
FHA 203k loans are horribly complex to go through with and mountains of paperwork that never ends. The only way this was possible is that my partner on the deal is a licensed contractor and was able to do all the paperwork. Any regular contractor would 100% not have kept up with all the paperwork needed and stipulations necessary to get this loan.
