All Forum Posts by: John O'Leary

When it comes to securing financing, most lenders will expect you to have some skin in the game. Typically, this ranges from 10-15% down for short-term value-add loans like bridge loans, and 15-20% down for turnkey purchases requiring long-term financing. If you're having trouble finding a lender who offers 100% financing with no upfront costs, you might want to explore using a HELOC on the equity you already have to fund your initial investment purchase. Wishing you the best of luck in your endeavors!

Maybe refinance to a DSCR loan in the LLC. DSCR loans are typically not reported to credit agencies.

Call RTR title. Hope (the attorney) does a lot of these for FL investors. She's located in Orlando. 

Find a mastermind like the Boardroom. Think of a mastermind group like having a whole team of mentors at your disposal, rather than just one. Sure, having a personal mentor is awesome for getting targeted advice, but being part of a mastermind takes it up a notch. You're not just learning from one person; you're tapping into a diverse pool of knowledge and experience from everyone in the group. It's like having a brainstorming session where everyone brings their own insights and ideas to the table. Plus, being part of a mastermind connects you with a massive network of mentors across different sectors and backgrounds of REI, opening up endless possibilities for learning and collaboration. The initial investment might be large, but if you can't make that back in a few deals from leveraging the network you might not be in the right position within your business. I personally would pay to skip the line and condense time.

Has anyone worked with Upright in the past 2 weeks or so. It seems a lot of people have left, and it's difficult to get anyone to answer. Are they still in business?

Optimize your efficiency and focus on high-value activities. I'd delegate cold calling tasks for VAs and concentrate solely on engaging with warm leads. Your time is most effectively utilized in business development and establishing additional marketing channels. Consider hiring the VAs to handle cold calling, freeing up your schedule to interact exclusively with motivated sellers in real-time, and look at other channels like direct mail, text, SEO, and boots on the ground networking. 

As far as lists go I would add absentee owner to the above lists. 

Look at companies like Lamassu for cold calling. 

Propstream, and Batchleads are two companies you can look into. 

Hey Zachary 

I think it's essential to look beyond mere interest rate differentials and focus on strategic benefits, particularly if scaling your portfolio is a long term goal.

Key considerations:

1. Pre-payment penalties: Determine if the HELOC has any penalties, impacting your flexibility payoff.
2. Scaling strategy: Evaluate the scalability and limitations of each financing option.
3. Advantage of HML: Allows scaling without hard credit pulls, and no pre-payment penalties.
4. Holding costs: Factor in not just interest rate differences but also ancillary expenses as well as overall goals of scaling.

Example scenario:

• Property purchase for $120,000 with $30,000 renovation. HML offers leverage up to 85-90% of purchase plus 100% of rehab costs.
• Monthly payment difference between 8.5% and 12% is $438, difference in holding costs during renovation is estimated between $876-$1500. Might be worth it to only be in the deal for say $20K overall, and do more than 1 at a time. Again assuming your long term goal is to scale. 

The decision should prioritize the route that furthers your investment objectives. Leveraging financing options with a HML or PML can offer flexibility, scalability. It is also worth noting that there are Bride loans lower than 12%. Good luck.

The NCREIA is a great networking event that meets every month in Charlotte. Hope to see you there!

Lenders. Find your local Private/Hard Money lenders and partner with them. They pre approve buyers all day that just need to find a deal. Make sure they work with wholesalers assuming that's what you need buyers for.