All Forum Posts by: Daniel Vikhtinski

@Bill B.

Thank you for your response! So, essentially through the lender I had lined up, they would cover literally 100% of the costs of EVERYTHING, but it was a cheap house with low renovation costs, so the interest payments were not going to be any larger than a typical mortgage payment around here. The problem as I stated was that I had no liquidity, so yeah. I needed a partner to just hop on the loan, help with interest payments for the duration of the renovation, and then gain some compensation. I’m a new investor, so I didn’t mind forfeiting a significant number, I just didn’t know what would be fair for a situation like that. 

@Tim Swierczek

Thank you! I’ll follow up in direct messages shortly. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Paoli.

Purchase price: $190,580
Cash invested: $27,000

Bought a duplex in great condition in an excellent location for 10% down that now cashflows at a 35% cash-on-cash return! All thanks to my real estate agent who did a little digging on the property to find out it was actually a duplex rather than the listed SFH.

What made you interested in investing in this type of deal?

I had been searching for a deal, any deal at all to help me get started in real estate. This just so happened to be the one that worked out!

How did you find this deal and how did you negotiate it?

My agent found it listed as a SFH and did a little bit of digging to find out it was actually a duplex! Won the property with an escalation clause.

How did you finance this deal?

Conventional 10%

What was the outcome?

I now cash flow $800 a month for a (roughly) 35% cash on cash return!

Lessons learned? Challenges?

I learned so much from my first deal I can't even list everything! No books can beat real-world experience!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Amy Gotvald with New American Funding is an excellent lender that I cannot recommend enough! As well as my agent (and now mentor) Paula Quinn at eXp Realty!

Hello everyone,

I found a fix-and-flip deal where all the numbers look good except for the fact that I don't qualify for the loan due to not meeting liquidity requirements. Unfortunately, this means that I have to let this deal go, but it made me come up with a couple of questions about this situation:

Does anyone have experience in partnerships where one partner's only real requirement is to sit on the loan and potentially provide interest payments when needed during the duration of the construction? I've never seen a partnership structured this way or heard it talked about.

What would fair compensation for such a partnership even look like?

Any help is appreciated!

Thank you!

@Josh St Laurent

Awesome! I’ll start on those right away. Thank you! :)

@Tim Swierczek 

Interesting. I always wondered how the logistics of billing worked on a large scale. I’ll have to implement that as I progress, that’s very helpful! I’ll also be reaching out later today to possibly set up a time to meet!

@Josh St Laurent 

That makes sense. I’ve always been interested in LLCs but I’ve been told it’s a late-game move, and not really for a new investor such as myself. I’ll have to do some more research. Got any suggestions on books or podcasts to learn from?

@Tim Swierczek

Thanks for the advice Tim! I’ll try and keep things simple in my business, that’s how I like them anyway haha! Since Minnesota allows security deposits in the same account as rental income (as far as I’m aware), I’ll most likely just have one account per property. 

Perfect, I’m all set now. I appreciate it Jonathan!