All Forum Posts by: Dustin Horner

Thank you @Drew Sygit and @Phillip Austin!

I didn't mean to imply that someone would consider hiring FT help at 10 units, but I guess I was wondering what the hypothetical point would be in which an owner might even consider it. But, yes, it sounds like simply looking at your numbers and determining whether or not you can absorb a salary is the time to consider it. 

I'm just beginning but am considering a bigger commitment in the next five years or so by accessing some or even all retirement funds to buy a building (I'm sure people have thoughts on whether or not that is a good idea!). From there, I would like to consider a 1031 exchange in the future to acquire more units.

My current property management company suggested that they could handle a mid sized apartment building but I would absolutely not consider them for it as I believe they have overextended themselves and communication is lacking. I just want to get the management side of things right if I were to commit virtually all of my resources to it.

Best,

Dustin

Hello everyone,

This is a few years off for me, but I was wondering when someone would decide that hiring a FT employee to manage a property (and potentially FT maintenance) would make sense? For example, if a person owned an apartment with 10+ units, would it be better to outsource everything to a property management company? Or, would it be beneficial to hire an employee to handle day to day tasks? Obviously, cash flow would have to be such that you could absorb a salary, but it seems it might be better to have someone trained by the owner who is present for everyone in the building as necessary.

Thank you all for your thoughts!

Dustin Horner 

This is a deal I've had my eye on for awhile. Is anyone interested in funding the down payment for an 8% payout in monthly installments (balloon payout date to be discussed)?

The financials look great (provided with link). I am local and have spoken to the selling agent and a commercial lender.

There is a good property management company already in place and I will likely keep them in place for an easy transition.

Let me know if you're interested.

https://www.loopnet.com/Listing/Stearns-Terrace-and-The-Heights/31141842/

Greetings,

This is likely a silly question, but are hard money lenders ever willing to fund 100% of a down payment on a large purchase (20+ units) after viewing the deal (rent rolls, etc)? Is anyone willing to do this?

Thank you!

Dustin H.

Thank you for your response, @Caroline Gerardo!

Thanks for your response, @Mike Klarman!

Silly question: how the heck does a person gather the 20% down payment on a large purchase like an apartment? It seems to me it would be difficult to even finance a large down payment if a lot of your money is tied up in assets. For example, I used a HELOC from my primary home to purchase my first (and only) single family property. The HELOC covered the down payment and then I got a conventional for the 80%. This method does not seem replicable on a large purchase.

Thank you!

Dustin Horner 

Hello everyone,

I am curious about paying a private money lender back on a larger buy and hold purchase. I know (roughly) how it paying back a private money lender would work for a fix and flip or even BRRR, but how would a person pay back a private money lender on, say, the purchase of an apartment building? Does a person always need 20% or so down? If a deal if privately funded, and these are shorter-term loans, can I do a cash-out refi after a time to pay back the private money lender? Does a cash-out refi even work if you're not doing a significant value add?

Thanks to anyone willing to provide some insight! I'm interested in moving up to multi-family in the near(ish) future, but I'm thinking it might be difficult to find 20% to put down on a significant purchase. I like the idea of a lender looking at the deal and not pulling my credit (again), but I'm wondering how paying such a lender back would work, considering a (likely) higher interest rate and short amortization period. I'm less interested in updating a property at this time.

Thanks again for any clarity on this!

Dustin Horner

Thank you, @Tim Swierczek. It's true that I may have been misled. My broker told me I should be able to refi in something like 4 and 1/2 to 6 months. However, I agree that it looks like the math will definitely not work to pay of my HELOC and have anything extra.. Perhaps I should wait a year or so or even look into seller financing. I don't currently have any partners.

Dustin 

Thank you for the reply, @Jeff Schemmel! I'd like to purchase another property or two before the end of 2024.

I would like to pay the HELOC down if I can refi in a couple of months (the conventional loan is about 108,000. I purchased the house for about 133,500 with the HELOC as the down payment). I'm guessing I should probably pay off the HELOC when I refi and hope I have enough for another down payment..? Still learning about different financing options.

I'm really not interested in managing the property right now as I have two small kids and we're very busy. I am, however, a college instructor and so I have some flexibility in my work.

All appliances (save for the water heater) are new and unless I added a small garage or something I'm not sure what to do for a value add.. I'm hoping just to get somebody in there soon. I'm renting the place at 1495 currently and, based on comps, this doesn't seem like an unreasonable price. Don't know if I should drop the price a bit if it's been over a month or sit tight...

Dustin Horner 

Thanks so much for the reply, Brittany! My property is in St. Cloud, and I closed on the place in early January and it's been listed for just over a month, so I won't hit the panic button just yet.

I would certainly be interested in any lenders you might recommend!

Thanks again!

Dustin Horner