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All Forum Posts by: Christian Chartier

Christian Chartier has started 5 posts and replied 16 times.

Thanks!

30 days would be sufficient time. 





Quote from @AJ Exner:

Just shot you a DM

Usually any lender is going to want to get a snapshot of any potential licensure as well as your FICO, but should be plenty of options.

I guess the follow up would be moving on it ASAP, how long do you have to close? Often times that designation can immediately eliminate some lenders based on ability to close (despite their willingness to charge you *RUSH fees, etc.)

Good luck!


Searching for a reasonable lender to fund a fix and flip. 

There are two of us applying, one of us has never flipped a property but does have multiple buy and holds, the other partner has done 40-50 deals 5-8 years ago. 

The deal:

looking at an off-market deal on the beach in Pinellas County, Fl

2 story home on the water

3,800 sq ft. 

5 bed 6 bath

Price: 1.5 mill

ARV: 3.1 mill

renovation costs will run 400k

I can put up to 200k down for purchasing. 

Looking for 100% renovation coverage with 6-9 months to sell. 

Willing to pay points/put up property as collateral etc.

Reach out with your options and offers. 

Would like to move on this ASAP. 

Quote from @Jed Butikofer:
Quote from @Jonathan Greene:

If you aren't house hacking, multifamily deals should be profitable (maybe not in CA).

When I review markets I have lived in, I see 2 bed duplexes for $500k-$700k while only generating $1,400 each in monthly rent. With 20-25% down the total monthly income doesn't even cover the mortgage payment. This leaves me paying all other expenses out of pocket. I'd like to see some example numbers for a muti-family deal that is profitable if you're able. Thoughts?


 Hello,

It sounds like the metro you're in is not conducive to a profitable rental. 

I'm in Florida (lower cost), and I picked up a duplex a couple years ago as an owner occupied unit. Bought and moved into a SFH 8 months later.

My numbers on that property are good now, although it took a year for me to sort out exactly what we wanted to do with it. 

700k duplex, single story, about 2,500 sq ft total building size. 1500 sq ft for the 3 bed/2 bath with pool and 1,000 sq ft 2/1 small private yard on the other. 

Payment to the bank is $4,311 (includes escrow/insurance), total monthly rent $5,600, which leaves me roughly $1,300 monthly after expenses. Rate is 5.125%, 30-yr. loan. 

My loan was a VA loan no down payment, and I carried the whole mortgage a few months in the first year while figuring out what to do with the rentals. Luckily, we were able to make it work even with no down payment (I did have closing costs, around 20k) and full seller concessions.

The previous owner is also an investor, but lives out of town and didn't like his returns through short term renting, even though the property is less than a mile to the beach in Pinellas County. 

I think im living proof that profit can still be made, even with little or no down payment.

Post: Private lenders/ DSCR/flippers

Christian ChartierPosted
  • Posts 16
  • Votes 11

Sounds good Devin, I'll reach out for a conversation this afternoon with your office. 

Post: Private lenders/ DSCR/flippers

Christian ChartierPosted
  • Posts 16
  • Votes 11

Good morning,

I'm looking for some lenders for some quick fix and flips in my area after the last two hurricanes. 

There are a large number of flood/damaged property's listed for 50%+ off of the original value and in very desirable locations. 

I'm looking at 2 deals hard right now, one has an ARV of about 600k going for 350k now, and another with an ARV of 550k-590k going for 310k.

I have a trustworthy and efficient crew that will do the reno's for me, I'm seeing what I need to do on the financing side. 

Also, open to syndications in this area to get these houses back up and in order. I'd like to do 5 flips from now until the next hurricane season strikes next year. 

My real estate experience thus far has been buy and hold although I have used the crew to do several jobs for me and have referred them out to others I know who have had only great thingsto say about them. 

I'm seeing deals all over town, if I can swing a big enough club, it would be highly worth it to pick up some of these beach properties that are now listed for up to 80% off value, rehab and flip them. 

Quote from @Joseph Fenner:
Quote from @James Hamling:

Serious question @Joseph Fenner, I am curious the catalyst where you came up with this whole idea of things. 

Was there some book you read, some class or YT info you drew upon? Where did this notion come from of going from 0 too 167 properties in 5yrs???? 

So here is something I wonder if you ever considered in this venture; what if you really suck at it?       Serious. How many people set out that they want to be, say, a Dentist only to find they really hate it. And in the path of things, they switch, to say being a Pediatrist. 

I am seriously curious what posses one to think there gonna set out to be HUGE, vs setting out to start, try it on, feel things out, focus on the 1 and see where things go from there? 

When I was in HS a new English teacher came and was there for 1 month and quit, during the time he had us read Rich dad poor dad, and ever since that I become hyper fixated like a spark went off, It’s all I think about, I believe anything is possible. Also I don’t have a choice it’s real estate or nothing, financial freedom is getting achieved no matter what, I’m living the lifestyle I want and I need to retire my mom she’s 52 years old and has $2K in her retirement account. Someone has to do it and I’m the only one that is strong enough to go to war with the challenges and get it done. I’m not gonna suck I will be the best because effort beats talent, anything is possible and I will achieve my goals. I don’t have a lot of time I’m about to be 21 I need to be a millionaire by the age of 25. Real estate is very interesting to me it’s like putting together a puzzle in my brain and it’s fun. Real estate is the only option I have. I will be the greatest and nothing will stop me because I am unstoppable. I need to be the first millionaire in my family I promised it to myself, my mom is relying on me and the people that doubted me are watching me. I need to win at the highest level. I’m tired of being poor I can’t live like this for the rest of my life working a 9-5, 2 week vacation a year, horrible pay, all for 60 years of your life. That’s a waste and that is not normal This is prison and I can’t wait for the day I retire my mom it’s gonna feel amazing. She’s gonna have the best retirement and I’m gonna be living the life of my dreams. Young!

 I don't want to offend you, but when I was 20 I also thought that this thing or that thing was the only way to go. With maturity, you find out quickly that life is ALL about hard work, ESPECIALLY with the goal you've set out. 

Regardless of what you do, you still need the basics to get started which are a good paying job, low expenses, and savings. 50k is a great starting point, but you'll quickly realize it doesn't go as far as you thought it might. 

Please heed me, I also thought 9-5 was prison and would not be for me. Since starting out in this world, I've re-evaluted everything, multiple times, and have had to change my plans consistently. 

You either need a good paying job, or a business that's been profitable for at least 2 years to move forward. It was eluded that you don't even have a steady income outside disability. If you're getting SSA or SSDI with only a couple years of work experience you're most likely bringing in only about 1k a month or less. That is not enough income to satisfy any lender unless you live somewhere that you can purchase $50k-$100k properties. 

My goal was to be an entrpreneur, never go to school or join the military and definitely not work a 9-5. 

Gues what maturity has done to me? Put me in the military, then went to school and now I'm back in school again at 36! All the things, I said I'd never do. Reason being, our first choice path does not always work out. We envision the goals in our head, but the path there often is painful and not in line with what we thought. If the goal is still the goal and you are willing to do anything to achieve it, then test everything, don't set a path in stone that you cannot come from out of. 

It took me alot to get some properties. I work in IT, work hours 8:30-5, salaried and work from home. Two masters degrees, two properties and my home residence, and still charting my path to the goals I set sooooo many years ago. 

Reassess your path and timing, if its truly the ONLY thing you want to do in life, then get a job working for a commercial developer or an investor who buys frequently. At least the work will line up with your goals and you will be getting paid money and a free education in property development and management which are the two things you need, money and education.


The only fast road to this is unlimited cash, which you dont have.


Quote from @Joseph Fenner:
Quote from @Brandon Croucier:

You don't eat an elephant in one bite.

Focus on whats in front of you.

Thank you for this, Based on my goals what other advice could you give me?

 Start with education, ALOT of it, study study study. Books/internet/people you know who have done something similar. 

One thing about real estate is that you can do it a million different ways, first thing to do is to find out all of those ways, then see where you can fit into one of those strategies. 

Based on some of the juvenile questions asked, I want to just forewarn you. One deal can totally wipe you out, especially when you are leveraged to the hilt (personal experience). 

I also highly suggest you expand your time horizon from 5 years to 15 years (minimum, more like 20). Your first few years will be slow going, even if you BRRR because you also have to occupy your propety for a period of time to get those low down payments. Each lender is different, but you don't want to run afoul of those rules and find yourself deep in a court case with your lenders for fraud. They may not catch on the first couple times but they will notice your pattern.

Also, what worked in one property may not necessarily work so well for the next. Example, I purchased a multi in a vacation town (where I live). I decided I did not like the hassles of STR, nor did I want to pay a property management. Tried LTR at the property and am satisified with my monthly net return (about $1,200, net means=after all expenses) on a property that cost about 700k.

As I said above, there are many ways to do this and I am always learning more. I am now in the process of converting that multi into a long term residential group home. Once I receive my license, I can be looking at 10x my current monthly return. 

Lots of ways to do this, but better to go slow and protect your capital along the way.

Quote from @Wale Lawal:

@Joseph Fenner

To acquire 167 rentals, use creative financing strategies like the BRRRR Method, seller financing, partnerships, joint ventures, HELOC/Equity Loans, portfolio loans, credit cards, and business credit lines. Leverage private lenders and seller financing to avoid draining cash reserves. Start with one or two BRRRR deals and use cash-out refinance for next deals. Build a strong network of lenders, partners, and contractors to achieve your goal. Don't hesitate to go slow initially, learn from the first few deals, and pick up the pace once you've locked in your process.

Good luck!

Hey Wale,
In my experience, private lenders tend to cost more overall, although they do allow some shortcuts that a main lender does not. 

Do you work with private lenders who are offering good deals, at a better cost than the market as a whole?


With the little amount of funding you have, only way I could see this happening is if you join a syndication that already has the opportunities and steps down. 

You will not be able to BRRR your way through 167 properties, I doubt in 1 lifetime let alone 1 year. It sounds like you will only be doing the BRRR method for your primary. Don't forget, lenders require you to dwell in the property for 6 months-1 yr minimum. It won't be long until they catch on to your scheme (some lenders may even consider it fraud), so be careful you don't get ensnared in that.

As a beginner, you'll have less funding opportunities, use that time to learn your process (whatever it may be). Get a couple properties under your belt, make sure the cash flow is there. Down the line you can start looking at DSCR loans for your properties, or even I/O (interest only) DSCR loans, however you'll need to prove to lenders that you not only know what you are doing, but that your method is also profitable. You'll need to aim for 1.00 or higher ratio to make it work for lenders offering those programs.

I hate to say this because i am totally against it, but you can borrow from friends and business associates, try and find aomeone who can contribute not only funds, but also strategy (since you're new).

It's great to have lofty goals, just remember you need to find a way to pave the road to your end goals. 

Your post reminds of nee investors who have just discovered options trading. Yes, you can become a millionaire fast, but you can also lose it all and the chance of losing it all is far greater than making millions (as a new investor). 

Take it slow, create your path, see how it plays out with the first and then reassess.

Post: Best rates on ARM loans

Christian ChartierPosted
  • Posts 16
  • Votes 11

Great insight into several aspects of what I'm trying to accomplish. 

Thank you for your professional input.