All Forum Posts by: J.C. Martel

I want to scale my RE investments. I've been investing for 15 years with rentals, flips and BRRR. Now I'm down to only 1 rental, $200k HELOC on my primary, 800+ credit score, and a high income job.

I am looking for how to bring in a lender partner that I can work with on multiple deals, single or multi family. But I haven’t identified the properties yet, which lenders usually want to see through a formal application. 

Will lenders entertain an early-stage conversation about how much I can potentially borrow across a few different properties? What is the best way to prepare for that conversation? It seems like loan products for investors have higher interest, so any advice on how get the best rates, ie which banks/lenders?

This is great advice, thanks. I will lay out my strategy on paper and meet with a lender. I’ve been working with my local credit union for the past few years, so I’ll head there. 

Lien,

I think my underlying problem is strategy. My ‘buy box’ may be limiting me. I only hold decent properties in nice areas, modern construction, etc. I’ll flip anything where the numbers work. I’d say my flipping limitation is time. My ‘hold’ limitation is money, which is constrained by my buy box. 

With a $200k HELOC, I could flip one property or buy 3, using it for down payments and leveraging loans. But these days, it's hard to find decent properties where the numbers work as far as covering the debt service with rental income.

I think what I need is to find a lender partner that will work with me to secure 3-5 properties over the next year. 

Nick, are you referring to a HELOC on your primary home then using it to buy an investment property? Or what do you mean?

I've been investing in real estate for over a decade, but never really gotten to the point of scale. I've owned 4 rentals, done ~10 flips, done BRRR and been a hard money lender. Never had a bad deal, always made quite a bit. I want to scale, but not sure how to develop my strategy.

I have a $200k HELOC and excellent credit worthiness and high income from my day job. I have property in Kansas and Massachusetts and have a Kansas realtor's license.

I’ve always been into single-families but now considering small multi-family. Never owned a short term rental. 

Any advice on what you would do in my shoes?

Thank you for the offer. 

Im looking for a partner to lend $30k for 6 months at 12.5% simple interest beginning next week, Dec 12 to May 1.

This is for a flip in Lawrence, KS. The project is 80% done and I need to take some of my cash equity out. 

Has anyone had any issues financing a condo at Windsor Hills? My lender is questioning STR limits when it comes time for condo association review. He said over 60% STR can have issues with financing.

I am based in Kansas but lending in Colorado just to one builder. 15 years ago I lent to one fix and flipper. We did around 8-10 deals over 4-5 years. Now I built a relationship with just one custom builder. 

I ended up lending through the same LLC that is holding my rentals. I figured it's passive, like LTRs. Still not sure of the tax implications. I'm anticipating that the gains will probably be taxed at my ordinary income rate. I will probably ultimately create a separate LLC for private lending since it really should have its own systems separate from my other businesses.

As far as legal work (since that’s what respondents focused on), we use a promissory note that meet state requirements as far as maximum allowable interest rates and also secure the note using a deed of trust.