All Forum Posts by: Daniel H Truex

Thanks Caleb,

Kind of what I figured. Possible but difficult. 

I have a two quick questions that I am hoping someone on here can help me understand.

I have a possible deal where the (commercial) building will appraise for well over what they are willing to sell it for (30% +/-).   Assuming this is true.... 

1. Is it possible to structure the deal so that I put no money down because the LTV already has a difference of 20%? In theory the banks want that twenty percent down so that they are insulated in the case of a foreclosure.

2. Assuming that it is possible to put no money down... and because the LTV ratio is so far apart, would it be possible to pull money out of the property to create an emergency fund?

The people selling the building are friends and (maybe) willing to be pretty flexible as long as they get the money they want. What I was thinking is some kind of deal where we pay more but then they give us that extra in cash at closing (some sort of contract drawn up prior). 

My main goal (and I have no idea how realistic it is) is to create an emergency fund. This would be my first commercial property and while it has some tenants already I know these can be a bit more difficult to lease out than a 2 bed 1 bath. 

Any thoughts/suggestions/advice would be appreciated. Thanks!

Austin,

Congrats!  Awesome story.. I sent you a PM.  I think I may know you from another forum.  Anyway, you too are ahead of me.  I read Rich Dad, Poor Dad about 7 months ago and now I close on my first property in 4 days.  Awesome about your success!  I hope to emulate you and your accomplishments.  Congrats again!

Congrats Craig!

We have some similarities in our stories.  Although you are farther along than I am.  About seven months ago I read a book at the suggestion of a friend called "Rich Dad, Poor Dad" (maybe a couple of you have heard of it lol).  Anyway this changed my mindset.  I had always done the "right thing" but had come to the realization that what most people accepted wasn't going to work for me in the long run.  Anyway, I close on my first property in 4 days and look to purchase the next one in March or April.  I actually went back and read my first post here (I read way more than I post) and so far I am meeting my self imposed timeline.  Anyway, Just read your story and wanted to say congrats!  I look forward to seeing how you move forward in the future.

Thanks Jim... I actually have to join FB first... I tried but they apparently don't believe I am are al person.  I actually had to send them a picture of my ID.  I am currently waiting for a response.  Once I do I will look at joining.

First of all thank you for all the responses.  I appreciate the welcome and the advice.  I will start looking at REIAs in the future.  Unfortunately there was no way I was making one Tuesday night but thank you for the invite Joe.   Feel free to let me know in the future when your meetings are.  It appears that there are several different ones in Lexington and I am not sure which one (maybe all?) will be the one to join.  Thanks again for the welcome... Dan

Hello All!

I am not officially into REI yet but have started reading extensively, listening to podcast, and browsing this forum. I currently live in Kentucky and have no plans of quitting my day job(s) which I enjoy. My plan is to buy my first property at the beginning of July with a target date of 11-12 months for the second one. Currently I think I prefer a buy and hold strategy possibly using the BRRR method if possible.

Since my wife is indifferent to this venture I have to use my own money to fund this. I should have $25-27k saved by that point. I have currently lined up an agent (not a friend but I have known him for years and REI is his thing), a management company (owned by the REA), and I have spoke with a loan agent from a local bank. After giving her my financial details and a initial plan I believe I should be a go for a 5/5 arm commercial loan on a 20 year note with an attached construction loan if needed. I have formed an LLC (which I know means nothing) as well as an operating agreement, business plan, etc.

I look forward to learning from you all and am willing to accept any and all advice. What I am currently struggling with is how I jump from small 100k duplexes to 500k+ properties.  Anyone who has made this transition (on an investment budget of approximately 20k a year) I would love to hear from you!  Thanks!  Dan