All Forum Posts by: Jared Rogers

@David SemerSorry should have stated that multifamily (over 4 units) is considered commercial to them.

@David Semer You are welcome. Note that they say they are in need of commercial properties as their current portfolio is tilted too much to SFR.

@David Semerhave you tried First Community Bank? I use them, my contact is Bobby Jones in Winston Salem. He can lend across the state.

@Danny Gilley if you used the standard NC lease form you are covered by 17(D) where partial payment does not prevent you from evicting the tenant.

@Parker Harrison debt is not a bad thing. For real estate investors it is a fantastic tool. I am not sure exactly what you are asking but I will take a guess. My thought would be to sell your house and recapture your equity so that you have more money to invest with. Renting at a 1% of your basis per month is fine but in most areas of NC you can do better. You could also stay in your house and pull out some equity (HELOC or refinance) and buy rental property that way as well.

@Brionne Moss normal people which I consider myself to be saved and used friends and family. You have to fake it until you make it. And your friends and family know you and want to see you succeed so they will help. Maybe its not cash maybe its signing on a loan. Once you get a track record you can raise more cash. To make this a full time business you most likely will need bank financing and to raise capital from private investors at some point. 

Remember that many of the really big investors (which I am not one of but aspire to be) on this site started with $5,000 or less in savings or personal loan from a parent.

@David Furick passively? That will be tough. I have private investors that I pay 8-12% depending on the deal but that only gets you +$1,000/month. Otherwise you will have to buy multiple properties and with the benefit of leverage you may get closer to your goal. Your goal is 24% to 36% per annum which is ambitious. You could do flips and make that. Say you make $20k per flip and you churn that 3 times that is $60k. With a 40% tax hit you end up with $36k or on average $3k per month. However that is active not passive again.

@Dustin Benton since you are not experienced you have to offer something up if you want low rates (cash and guaranty's) from a local bank. Otherwise you could get low leverage and hard money but you will still need cash. In your situation, your only option may be raising it from friends and family.

@Heath Thomas Jr finding good reliable contractors can be a constant fight. I work really hard to show them I value their time and make pricing the job as easy as possible. I will even create "as is" and "as built" plans when the renovation requires it. I also pay very fast (weekly in most cases). I get most materials delivered so they don't have to leave the site, etc. On other matters I am tougher then some. The contractor signs a Independent Contractor Agreement, lien waivers, and needs to be licensed and insured (including workers comp.).

@Charlie Fitzgerald the problem is the ARV is coming in low.