All Forum Posts by: Johnoson Crutchfield

It's a 5 year loan at 25% interest, payment is 1250/month, but that 50,000 is like my seed money for acquiring rentals.  

So I'm having some success and it's hard to decide what to do next.  I'm having some success buying older properties, fixing them up, and refinancing them through local community banks.  I just finished number two this year.  So now I'm thinking I can do 10 this year if the bank will allow it.  Does anybody know how many local community banks will do? Also, my initial capital I'm working with is about 50k borrowed at 25% interest and so far I haven't paid it back I just keep using it to invest in the next property.  I know that's expensive money but is it so bad if I have 10 properties at the end of the year all cash flowing?  Really am looking for your advice.

The reason I did the high percentage debt is that hard money folks seem slow and getting cash off the credit card was such a quicker process. When I see the deal I want to grab it. I also don't have to deal with construction crew estimates and ARV appraisal fees when I go through a credit card instead of a hard money lender.

and another thing mentors are telling me.  2% a month is all you're paying to if I pay them off in 6 months I've only paid 12% interest and secured all the equity I could in that time frame.  Is that true?

Ok, so cash out refi the two I've completed, pay off the debts.  How do I get capital to do deals from there?  Do I use the credit cards as downpayments?  How do I show my bank I have downpayment money if the loans are paid off?

This is exactly what I'm thinking.  I guess part of me is just ready to do the next deal.

Brie, the thought is that I could continue to build equity through the debt. Not sure I understand if your answer is to invest or pay off the debt. My next deal would be... by for 20k, invest 20k, appraise for 70k. BRRR and have another cash flowing property. By the way.... if I pay of the debt I don't have any money to keep securing properties.

Help, I'm going to give as many details as possible because I'm just getting started and could use some good advice. I currently own 5 properties including my primary. 2 of them I just purchased as bad shape rehabs that I wanted to fix and rent out, using the BRRR strategy. I had no cash so I put all of the repairs and purchases on a 50k loan at 25% and 50k credit cards at 25%. So now I am 100,000 dollars in debt. The properties appraise for 75k and 100k, for a total of 175,000, and my bank just gave me a check for 50k to refi the first property. What do I do now? Do I pay off the high-interest loan, then take the other refi and pay off the credit cards? Do I split up the money in some way, keep the high-interest loans and acquire more properties? I can't help but feel like having the high-interest debt is really risky. I need ideas and feedback. The collective rents from the two properties will be $1600/month.