All Forum Posts by: Jackson Ebersole

Hi Michael,

Getting funding for a down payment on real estate can be challenging, as most of the funding typically covers the other 80-90% of the property's price. However, there are several options to consider beyond using your savings. For example, you could refinance one of your rental properties at a low Loan-to-Value (LTV) ratio.

If you prefer not to involve a partner in the down payment, you might consider asking a family member or friend for a loan. Ensure you have a clear agreement in place to avoid potential issues.

Real estate crowdfunding platforms, such as GoFundMe or Kickstarter, can also be used to raise funds for a down payment. However, this approach may require a compelling story or project to attract contributions.

Some people opt for personal loans to cover the down payment, though this can come with high interest rates.

Lastly, some private lenders may base your loan amount on the property's as-is value rather than the purchase price. If you're buying the property at a low price, this might allow you to cover 100% of the price with the loan.

Regards,

Jackson.

A pretty common way is to go through a private lender. Usually you need to have some experience before getting funding, however it will vary largely on the size of the rehab. Usually people with good credit, income, can get funding for light, cosmetic rehabs (kitchens, baths, paint, landscape). However there are more factors as well. Like where you live for example. 

Hope this helps.

Cheers,

Jackson



 

Rick poses a key question. How are you planning on financing the build or investment? 

If it's your first groundup, I would definitely find a more experienced partner that you can learn from. But I would first start on something even smaller. It is quite an undertaking, processes will be long and unforeseen costs could pop up. You must tread extremely carefully. 

You will need to conduct some thorough market analysis. How fast you can get quality tenants, and how much cash flow they can provide. What are average rents like in your area? Who is your target tenant? 

 I'd personally talk to some contractors, and local real estate agents, and do some more connecting on here to get some more opinions from more seasoned veterans. 

Good luck! 

Jackson

Everett, 

Happy Friday! 

Let me reach out to a couple of my contacts and get you some more info!

Your strategy sounds perfect for a beginner. Getting your toes wet, not biting off more than you can chew, learn A LOT, and make a bit of cash doing so. Where are you thinking about doing these flips? I'd be very interested to see what area you're targeting. 

To your question, yes, I am based out of KCMO. Brookside/Waldo area is where I am at. The rest of my team is based out of New York and Europe. We've done some work in KC area, mainly handling the financing for Fix & Flips in greater KCMO area. 

If you need any help with anything, happy to assist in anyway. 

Cheers!

Jackson

Hey Quentin, 

Here are my bits of advice:

Prioritize Value-Add Opportunities: Focus on properties that require cosmetic updates rather than extensive structural repairs. Since you and your wife have renovation skills, targeting properties that need minor improvements can maximize your return on investment while minimizing the time and cost associated with major renovations. Look for properties with outdated kitchens or bathrooms, as these updates often yield high returns. Fences, basic landscaping, tree removal can put some nice padding into your margins as well. 

Focus on Positive Cash Flow: Given your goal of ensuring positive cash flow, look for small multifamily properties that require moderate rehab. Analyze potential rental income versus expenses carefully to ensure the property will generate income from the start. This aligns with your financial situation and helps mitigate risks associated with high debt-to-income ratios. Happy to discuss in further depth if you would like.

Explore Creative Financing Options: Look into alternative financing methods such as seller financing or lease options. These strategies can allow you to acquire properties without traditional bank financing, which can be beneficial given your current DTI and income situation. Creative financing can provide flexibility in structuring deals that work for your financial situation.

I understand that rates are a bit higher than everyone would like at the moment. However, we are expecting 2 rate cuts this year. This would allow you to leverage what Travis said, Buy, Rehab, Rent, Refinance, Repeat. Everyone will be jumping back in, making the market much more tight. So right now is a chance to nicely position yourself when this occurs. 

Good luck!

Jackson

Hi Randi, 

Nice to e-meet you! Are you still looking for a partner for the funding side of things for your next investment? It would be great to connect!

Cheers,

Jackson

Hey Everett, 

I noticed that you are based in KCMO, and wanted to make the connection! I noticed that you are looking for contractors based here. What kind are you looking for?

It would be great to connect further, I'll send over an invite shortly. 

Cheers!

Hi Tomas, 

Would love to help you find the best guidelines and deal structuring. I can have my underwriter look at some prelim terms for your investments if that would interest you as well. I also pulled some data on your market so you can compare and get some ideas flowing.

Would love to connect!

Hi Steve, 

Nice to e-meet you! My name is Jackson, I am an Investment Mortgage Consultant. Me and my partner (who is from Spain) and our underwriting team all speak Spanish fluently. Would love to connect! 

Cheers,

Jackson 

Thanks a lot Erik!