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All Forum Posts by: Dalton Shepherd

Dalton Shepherd has started 4 posts and replied 7 times.

Post: 100% financing possible for str?

Dalton ShepherdPosted
  • New to Real Estate
  • Alabama
  • Posts 7
  • Votes 2

Hello all,
I am trying to figure out a way to get this deal done and what my best options are for financing with $0 down, sub-par credit, and being a first-year independent contractor. I realize I have a lot working against me and that this is a huge ask, just trying to see what my options are. The details are:

STR $440k purchase price

Annual Rev: $208.8K     ADR: $773    Occupancy: 74%    Net Operating Income: $161k      Cap rate: 33.85%

All details are from AIRDNA with taxes, insurance, maintenance, capex, utilities, hoa, furnishing, and closing costs added.

At super conservative numbers:  ADR: $500     Occupancy: 70%      Cap rate: 19.7% 

Also, I personally believe that occupancy will closer to 80% but went with lower rate for conservativeness. 

Post: 100% financing for rookie str investor

Dalton ShepherdPosted
  • New to Real Estate
  • Alabama
  • Posts 7
  • Votes 2
Quote from @Dan Maciejewski:

If you're really getting a 34-36% cap rate, then you shouldn't have a problem getting partners on that!  That's great cash flow for that investment.

I'm hoping I'll be able to find a partner. Even with super conservative numbers at 70% occupancy and $500 ADR, cap rate is still 19.7%. 

Post: 100% financing for rookie str investor

Dalton ShepherdPosted
  • New to Real Estate
  • Alabama
  • Posts 7
  • Votes 2

Hello all,

I am trying to figure out a way to get this deal done and what my best options are for financing with $0 down, sub-par credit, and being a first-year independent contractor. I realize I have a lot working against me and that this is a huge ask, just trying to see what my options are. The details are:

STR $440k purchase price

Annual Rev: $208.8K      ADR: $773      Occupancy: 74%     Net Operating Income: $161k      Cap rate: 33.85%

All details are from AIRDNA with taxes, insurance, maintenance, capex, utilities, hoa, furnishing, and closing costs added. 

Post: I want to seller finance a deal but need some guidance.

Dalton ShepherdPosted
  • New to Real Estate
  • Alabama
  • Posts 7
  • Votes 2
Quote from @Eliott Elias:

The seller is going to ask you what kind of terms you'd like to offer. Here is what I usually offer

- 10% down 

- 6% Interest rate  

- Amortized over 40 years interest only 

- 5 year balloon 

Eliott, can you use this in an example with a $400k purchase price and explain what the monthly payments would be and the 5 year balloon? I'm still learning and trying to understand how this deal would look. Thanks in advance.

Post: Flip and Rehab Profit

Dalton ShepherdPosted
  • New to Real Estate
  • Alabama
  • Posts 7
  • Votes 2

When you are analyzing flip deals, what kind of profit are you looking for? I’ve seen some say they want to be “all in” for 70% of arv and I know some might settle for 80-90% if the turn around time is short and it’s an easy project. I know every situation and every person is different, just looking for general answer. Thanks! 

Quote from @John Underwood:

Ask seller if he will owner finance the down payment in the form of a 2nd mortgage.


 Can you explain more how this would work if I were using a dscr loan? 

Post: Long term creative financing

Dalton ShepherdPosted
  • New to Real Estate
  • Alabama
  • Posts 7
  • Votes 2

I'm looking at buying my first investment property but I'm wondering if there are private investors or companies that will lend on the rental income of the property and cover the down payment? If so, are there certain requirements that I or the property would need to meet? I'm leaving this fairly vague just to see if it is even possible. All feedback/answers are greatly appreciated!