All Forum Posts by: Joey Allison

Hey everyone. I recently started mailing yellow letters to home owners in my area.

I feel like am getting a decent response rate, but getting a deal has been tough. I sort of expected this much, but how are you guys negotiating during times when everyone seems to think their properties are worth more than they actually are? I feel like it’s hard to convince someone that their property isn’t worth what they think it is. After all, they haven’t had their property on the market for them to realize they are valuing the property too high.

In times like these where properties are selling over asking price, how are you getting deals done on properties that are not on the MLS?

Thank you.

@Cole Raiford Thank you for the reply. My issue us rate. The LTV at 75% is a non-issue. I will continue to shop around. I have very grood credit so I am confident we can find a deal somewhere. Thank you.

@Shaun Weekes Arizona

@Ola Dantis I appreciate this advice. Thank you for taking the time to offer your thoughts. Are you suggesting seller financing by “being the bank”? Because I do own 1 property free and clear, but I’d like to hold it as a rental. Thank you!

These are great Ideas. I appreciate all of that! I will create a presentation and ask agents to see if they have anyone in mind. @DJ 

@DJ M.

@DJ M. I have tried looking into private money. Most of the people I know who have money don't understand the dynamics of lending on real estate. Typically, they would lend on a deal where its a short term loan, small money deals. I haven't been successful finding friends with money yet lol

@Caleb Jordan  

That's interesting. I haven't come across a partial interest only loan. All my options were amortized over 30 years. I would be interested in a partial interest only loan. That would help a lot.

@DJ M.I understand how the math works. What I was trying to find out is if there is money out there that cheap outside of conventional financing.

@Ernesto Hernandez I was wanting to be around 5% with 80% LTV. Somewhere in that ball park. I could possibly go 5.5%. Anything higher than that starts to cut into my cash flow too much.

I have a young portfolio of 5 single family properties worth $775k. I owe $416K. I am trying to refinance and cash out to invest in more properties. The best financing I can find is about 6%, 75% LTV. This eats a significant portion of my cash flow and makes it impossible to eventually hire a property management firm once I do acquire more properties.

I would need to find money around 5% on the high end in order to make it worth it to me. Am I asking too much? Is this impossible to find outside of conventional financing?

My goal is to partner with a lender so I can flip deals to them and quickly move on properties as they come available. Conventional financing has been too slow in the past, and they are oftentimes a pain to work with.

What are you guys seeing on your deal that you finance? Thanks!