All Forum Posts by: Ephrem Bekere

Get deals before getting an LLC. You can also get a LLC once you have a property under agreement. I have properties under my personal name and under an LLC. But to get started that's the last thing I would worry about. Hard money lenders will lend on good deals. The ones I've worked with don't care if it's an LLC or not. They will have you guarantee the loan personally most likely.

@Charles Carillo Thank you! Sent you a DM

Does anyone know if there's lenders that would finance properties for international investors? I have family members who live in a different country but want to invest in the US.  

I will take 10 if these please!! Probably my favorite deal yet. 

Investment Info:

6 unit apartment building over 7k in sqft. 

Purchase price: $300,000
Cash invested: $0.00

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

I wanted something that was bigger. I am also not able to get any conventional loans so commercial it is! 

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

Off Market from a post card I sent over a year ago. Offered seller an all cash offer at 300k or a financed deal at 323k. Seller chose cash. 

How did you finance this deal?

80% Hardmoney on the purchase and got a partner for the 20%. I refinanced right away with a commercial lender. 

How did you add value to the deal?

Nothing yet, however the property has under-market rents. The plan to to increase the rents over the next 8 months close to market value. 

What was the outcome?

Closed on this on Dec 11th, 2020. Reached out to a commercial lender right away that didn't require seasoning. They appraised the property and it came at 392k. They gave me 80% of that which was 313k. I paid the hard money and the paid my partners the 60k they invested within 2 months :)) I closed on the refi Feb 11th, 2021. 

Lessons Learned:

Commercial lenders are easier to work with. When applying for a loan, apply for as much as possible. Even if it comes in lower you will get that amount. But if appraisal comes back high and you applied for a lower amount that's what you're getting. 

Thanks BP for all the inspiration! 

Columbia is a great rental market. I would buy if it makes sense :) 

Austin, like most people mentioned here one of the best ways is to partner up. You can also be a passive investor in syndication deals where you get equity (typically in a large deal) and if done right can get all your initial capital back in a short time (1-3 year) and still retain your equity in the deal. 

If you wanted to be more hands on, get a realtor and just start looking at properties that you fit what you're looking for. Even if you don't buy anything right away you'll quickly get a feel for what's good and whats not. Learn how to run numbers, it's a lot easier than you think. 

You can also get on local wholesaler's cash buyers list and get their discounted properties. 

You can be a private money lender and lend your money to flippers for a nice return while you learn about acquiring your own. There are so many options and you are in a great position. Talk to a lot of people, find one thing that resonates with you and just focus on that. 

There are local meetups that are good in Lancaster. Obviously most of them don't meet up now but you can join the groups on meetup. Elevate Investing Group is one I recommend highly. They might have already started the in person meeting. 

Good luck to you. Message me if you need anything. 

Lancaster is a great market. A lot is happening. Do not wait for a crash, if the numbers make sense buy it! Like @Nicole Dechow mentioned it is very competitive and it can be difficult to find a good deal. I am a wholesaler and it's getting more difficult to find good deals as well. 

Can you share the promo code?

@Nathan Boyer Hi Nathan. Having your mom as a cosigner is a great way to get started. I did an FHA last year and I'm currently working at refinancing out of it so I can buy another property using FHA again. Like @Ivan Barratt said, if you can find a property where you can add value, that would make the refi process very easy because of the forced equity. With FHA, you could also get a 203k rehab loan that you can use to rehab the property and add equity if the property is eligible. That would be your best bet. If you can't find a good multi, a single family is not a bad approach as well to get you started. You can rent out the rooms to cover your expenses.