All Forum Posts by: Clark Jarstfer

John, my personal FICO is great. Any tips on how I could start building my LLC's credit & PAYDEX? I assume I would be required to open a business credit card & make payments on time? Any tips on good starter cards for the LLC?

Thanks, @Sharon M.. The long-term goal would be to get into the MF game after I get some SFRs cash flowing and build some equity. Dump the SFRs and buy a commercial MF with multiple doors using the equity from the SFRs as a large down payment on the MFs. 

Lots of great responses on here; thanks for the advice, I truly appreciate it. 

Lots are mentioning that cash is king. That's very true. I do 100% agree with that and will go that route if needed, but I am really looking to hear from those that started without a good chunk of capital (what worked & what didn't when they went that route) so I can formulate an opinion on whether or not I want to go that route. Saving cash is most likely the smartest and most conservative route to go; I'd like to hear some creative riskier strategies, so I can formulate a plan most likely somewhere in between the two. Risk management & numbers are a skill of mine that I'd like to take advantage of sooner rather than later, but I'm also not a compulsive buyer and won't jump on a deal unless it makes sense. I'd just like to have the tools at my fingertips if I find a deal that makes sense from a risk management & cash flow standpoint, but don't have the cash on hand to purchase.

Thanks for the response, Davian. Is there a specific HML that you had success with getting the funds. I don't think I would have an issue getting a partner to bring some capital to the table; I have never reached out to a HML, though, so any advice on a good HML for a (relatively) inexperienced investor would be great. I say relatively because I have been working the industry for nearly 3 years as a conventional lender and understand the numbers side of what makes a great deal and what doesn't make a great deal. Just haven't quite built the capital & haven't found the resources to get started in the business.

Good evening all,

I've been a member of the site for a good amount of time now and have just kind of "paid attention" to a lot of the discussion on here. I am planning to start up an LLC and start investing in rentals in the Toledo, OH market in the near future. The plan is to look in to single family and small multiple unit properties to get started. I'd like to know how all of you got started as far as funding is concerned. As a 26 year old recent college graduate, I don't have a lot of capital to work with but there are a lot of very small deals ($20-30k) in the Toledo market that produce $900-1000 in monthly rents. I'd like to purchase one of those deals early next year and put all of the rental income to pay down the principal balance on whatever type of loan I am able to get & then hopefully financing will come easier for my next property. I work for a conventional mortgage lender and know that you won't be able to finance an investment property without a good chunk down, so the plan is to secure the funds through some other form of lending & then pay cash for one of the smaller deals in the area that have good income coming in.

The questions I have for you all are the following:

- How did you get the funding for your first deal?

- Do you know of any lenders that will lend $20-50k directly to a brand new LLC (almost like a personal loan to the LLC)? If not, do you have other suggestions for getting this amount of funding with little to no down?

- What struggles did you have when you started up?

All of your help is greatly appreciated.

Matt, I just sent you a message. I am a conventional lender in the Toledo, Ohio area & am licensed to lend in the entire state of Ohio. I do have some connections in the Toledo area that might be good to pick their brains. If you have any questions or would like to chat, please don't hesitate to reach out via either contact method listed in the DM. 

One of the benefits would be the interest only payment for a specific period of time. I work for a conventional lender in OH and we do not offer interest only periods. That would be a decent benefit to keep a little more cash in your pocket during the rehab phase. I am not recommending using Lima One, as I've never dealt with them. But that appears to be a benefit. Unless the higher interest rate ends up costing more than the P&I payment on a conventional deal.

David, just remember, in order to use FHA financing with 3.5% down, it has to be owner-occupied.