All Forum Posts by: Darrell Bratton

The trend that I am seeing is that money is tightening up and banks are playing hard ball with lending money. Even with a prior relationship and documentation, the loans are hard to get.

Investment Info:

5 single family homes

Purchase price: $300,000.00

Cash invested: $42,000.00

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

I am growing my portfolio for retirement income, with the 5 year goal of 100 doors.

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

I found this deal through a new realtor that I recently met. She is helping me, in conjunction with the broker. I accepted the deal immediately and then figured out the financing. The portfolio appraised for 50K more than the sales price.

How did you finance this deal?

I used multiple lines of credit to get the 42K. I will use my teaching income and cashflow to pay off the lines of credit ASAP.

How will you add value to the deal?

Only one of the five needed some rehab and the other four have renters already.

What was the outcome?

I am at 26 doors as I have two other portfolio loans with the same community bank.

Lessons learned? Challenges?

My challenge is not having partners and trying to scale on my own, while keeping 30% equity. Also, prices are rising and so are interest rates. It may be time for me to do a 1031 exchange so that I can continue to scale. I have learned that I have to trust my team. My team is my, realtor, broker, banker, property manager, lawyer, and insurance company.

Hello Tina,
I am in Dothan as well. I use Real Estate Services. Please email me if you wish and I will provide a warm introduction.

Hello Arielle,
Congratulations. Did you check the Condo docs (to see if you could rent it) before you put in the offer or after you had it under contract?
Darrell

I will make the September meetup. Where and When?

@Ramon Jenkins Thank you. I am getting base hits. I will settle for that. I am growing faster in the last 6 months than I have in the past 18 years. I have multiple phases of my strategy coming together.

@Greg Farabaugh I am going to sit down for a minute and use the cashflow to pay down the loan so that I reuse my equity to take down bigger and better deals. I am going to live off of my government pension and invest all cashflow to buy more real estate. I would be fine to pay off the 21 doors and live off of that, but I want to scale as quickly as possible and then start paying them off.

@Brian Garlington I was born in Richmond and grew up in San Mateo. My family is still in Richmond and Oakland. I would love to learn more about Multifamilies in Oakland. We are connected so I would love to email and set up a time to talk.

Investment Info:

Multifamily 8 unit

Purchase price: $233,900

Cash invested: $0

Two triplexes and a duplex

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

I am growing my portfolio for retirement income.

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

I found this deal through a broker who knows that I am looking build a portfolio and is somewhat my mentor. My mentor told me the day it came on the market and told me to put in a full price offer. I did that and it appraised for 50K more than the sales price.

How did you finance this deal?

I used equity from two rentals (48k). I rolled in two single family rentals into this loan so the full loan is 10 doors.

How will you add value to the deal?

I will add value by stabilizing the 8 unit, which has many long term section 8 renters.

What was the outcome?

I am at 21 doors as I have another loan with the same community bank. I have 11 doors in the other loan.

Lessons learned? Challenges?

I have learned that I have to trust my team. I was discouraged from buying a 6 single family deal by my mentor and then this deal came up. I was in a hurry to deploy my equity money, but my team stopped me in time. My team is my broker, banker, property manager, and lawyer.

I sold my first duplex that I bought 20 years ago. I bought it for 129K and sold it for 245K. I lived in it for 2 years and moved out. I managed it for 15 years and for the last three years, I had a property manager. I was the worst property manager ever. I will never manage properties again. That was 2 doors for 15 years, then I went to 3 doors. Now, I have 12 doors as I am starting to scale faster.