All Forum Posts by: Marcus Geiser

Quote from @Elise Bickel Tauber:

I may have missed it but are you planning to re-sell? If so, find a local contractor who is willing to do the work and sign for them to get paid on the work when the house sells. They will probably charge you a little extra but we've done it a time or two for clients. 

A bank near me gave HELOCs with 90% LTV & ZERO fees whatsoever, plus could be converted to mortgage for ZERO fees, also. They even offered a special of only 1.99% interest for the first year.

Something like this might be ideal, even if they'd only provide 50% LTV for someone with no credit, employment history.... because that's exactly what you're looking for. Not even 50%, actually. Worth calling every loan officer tomorrow and asking about such programs, they're minimum qualifications, & perhaps if those qualifications are somewhat negotiable.

Hey Marcus,

Based on your numbers the spread looks good. I would definitely try and find a way to fund it. I don't know your experience level, but this might be a great time for you to JV with an experienced investor. You have the deal, and your rehab cost is not high. This would be a great opportunity to network and partner with someone that you can possibly do more deals with moving forward. If capital is your issue right now, and your able to keep finding deals, I'm sure there is someone local that's on BP to JV with. Just my 2 cents, but that's wat I would do.

Hey Marcus, Can you give more details about the property? is it livable, is it a good market to wholesale with some cosmetic work? 

Where does your income come from? You must have something?

But anyway, I think you gotta either a) take on a partner, or b) do the slow grind, one project at a time, or c) get a side gig, Uber or Doordash and use that $ as your rehab money.

Hi Marcus! I can possibly help in the private lending part of the question. Private lending in the way I define it is individuals who have capital that they want to lend out to active investors.  This could be capital they have direct control over, like a retirement account, savings account, cash value in a life insurance plan, etc.  Another option is they work with individuals who have capital and match them up to loan opportunities that fit what they are willing to fund but collecting the documents, doing underwriting, and getting the package all squared away for a capital partner to say yay or nay to.   The reason I bring this distinction up is that we are a lot more flexible because we don't have the secondary markets dictating what they will buy, a business warehouse line that depends on certain boxes being checked (like minimum credit scores), and we are not brokering to hard money lenders so we really have zero control over the deal.  This makes a HUGE difference as the active investor because the source of the capital will dictate the limitations and experience a borrower has.

A private lender may be willing to lend on something like this, especially at a ridiculously low LTV, and depending on the current condition of the property and your experience managing renovation projects. They may require a draw instead of just giving you $45k and say spend it wisely. A draw model would have you fronting a certain amount of the repairs, getting invoices to show as paid from the various contractors, and obtaining mechanic's lien waivers in order to then get a certain amount of money refunded back to you, which can act to replenish your capital available to the next stage of the renovation. Whomever you talk to about the loan, make sure you understand how the capital will come to you and when, and by what process the draw happens.

If you want some additional information about private lending, BiggerPockets does have a book on that now! My co-author and I will be speaking at BP Con in about a week about diversifying your sources of capital to weather the upcoming recession and why it matters to active investors. 

The link to the book about private lending is here: https://store.biggerpockets.co...

I hope that helps!

#3 I bought for cash, cash I saved to rehab the duplex, but the deal is too good to pass. I now need to just file the deed. 

#4 is a home that I stumbled across in my daily routine. I clean up properties, I network with investors daily. We do a lot of clean outs. The REI often doesn't have a good person on the ground and I have a reputation for getting and address to the right buyer. I know how to run numbers, I locked it down for the people in my network that know what to do with it, hell I can wholesale it, release contract, for $1. As long as it keeps building relationships. She had someone else going out to look and had a number she was firm on. It was a look it up, obvious home run. 

Quote from @Theresa Harris:

How are you able to buy the properties if you can't get loans? Aside from your own home, you own a duplex, have another property under contract and want to buy a 4th property. You could look for a short term partner and then buy them out after 1-2 years. If you own your own home, can you do a HELOC to cover some of the reno costs on the property under contract and then flip that?

Sometimes we can find great properties, but we don't have the money to buy all of them.

Quote from @Chris Seveney:

@Marcus Geiser

Have you bought on private lenders and possibly give up some equity?

Why is your credit poor? If it's because you have defaulted on payments in the past it will make it much more difficult to get financing especially on NOO property.