All Forum Posts by: Courtney M.

Hi Bobby, with an apartment building, a bank is primarily lending on the strength of the asset, however your investor experience will be considered. Do you currently have any investment properties?

For any investment, I'd start with local banks. Ask for referrals from the people you may be working with, like your broker.

It's highly unlikely you will be able to buy an apartment building with no money down. It's highly unlikely you will be able to buy an single-family house with no money down, too. Financial institutions like to see some skin in the game. The exception is either working with a private money lender (but likely you're paying points/interest to that lender) or owner financing. However, if you don't have experience with apartment investing, you're unlikely to find an owner willing to finance your deal. 

Hi Jandy, have you done any investing yet?

I find the more I learn and read, the more I build my foundation of knowledge. Knowing how to analyze a deal and market, for instance, will significantly reduce risk.

Check out episode 368 of the Bigger Pockets podcast, the guest talks about her strategy in dealing with risk.

Per the SEC you cannot solicit for private lenders. As a previous poster mentioned, if you're looking for partners and posting online, it's best to keep it vague and post case-study like figures but not directly note you're looking for partners.

Structures can be whatever you want. For instance, if you're just getting started, maybe you pay points up front + interest-only payments, annualized. If you're proposing 1 point + 10% interest on monthly payments, this is what it would look like:

1 point = $500 paid to private lender once deal is funded (or closed)

10% interest payments = $500 paid to lender at the beginning of the month

If you're doing a BRRRR- type strategy, maybe the lender's name goes on the title at close for security. You pay your lender monthly as you rehab the property. Once you sell or finance, you pay the lender back the initial loan amount.

I would say the above are pretty generous terms, but if you're just getting started, that's what you may need to offer.

I agree with @Darius Ogloza. If you own an asset in an up-and-coming market, why sell now? I'd hold onto it for at least a few years. Leverage if necessary to buy other assets. If you don't have anything in mind I wouldn't go to the hassle of a 1030 exchange.

Thanks all! I filed for an LLC in the state in which the property is located. What I love about real estate, you learn something new every day!

I am in the process of funding a deal with a hard money lender. The hard money lender informed me that I need  to set up an entity it were to work with them. I've never worked with a  hard money lender nor do I have an entity set up, so I was surprised to hear about this arrangement. For someone who has never set up an entity before, what would you recommend?

@Account Closed having grown up in the midwest and now living in SoCal, I agree with you. I've gravitated back to my home market (Michigan) and even in that area you really need a solid agent and PM because it can be block-by-block. There's a lot of great stable markets and good opportunity. Finding a good PM is key. If you work with a PM that says they won't manage rentals in a certain area - listen to them!

@Dave H., Michigan is not a great market for flips right now. I think it's a great market for buy and holds and rentals. But the time where you could get $50k+ per flip was 2-3 years ago, not now. There's always diamonds in the rough but I think most investors look at the $20k/flip as a decent rule of thumb.

Hi! I'm looking to establish a relationship with a few hard money lenders based in the SE Michigan market. I would prefer they be local to the market, not just service it. Please let me know if you have any recommendations!

Hi there! I live in SoCal now but grew up in Livonia! I have a rental property in Westland and looking to add more in that area.