All Forum Posts by: Jonathan Peters

Thanks for everyone that is responding. I did not realize how involved the capital part would be. I have two people interested in helping bankroll a project and I was thinking more of one of them puts in x-amount to fund the construction and in return they get interest only payment for duration of loan say 24 months and then when I refinance the properties they would get a set % return on the money they loaned me. % could be negotiated based prime rate + a few %. Or maybe even an equity stake in the finished property. 

As for GC my father has been building for 40+ years and has owned a successful custom home business for many years. This is where I cut my teeth on building houses and remodeling. Originally I was just going to invest in some multi families as rentals and ended up purchasing raw land zoned for multi family. I want to build two 12 units but for refinancing purposes it sounds like I may be better of building multiple quads to avoid commercial financing and ease of refinancing to pull capital back out when each building is finished and occupied.

I would be supplying the land. Myself and my father would be managing the build. This would be my first full project. My father has owned his own business and been building custom homes and commercial properties for 30+ years. I would also be contributing some capital along with my father. 

I have a project I am putting together for a 24 unit apartment complex. What is the best way to approach and structure a deal for private money lenders for financing the project? I have not used private money before and want to be fair and profitable for both parties. I already have two potential investors to approach. 

I bring to the deal.

Land for multifamily buildings.

Oversee all aspects of the building process

Oversee property management 

I would like to find someone I can speak with to help me in making key financial strategies for my real estate goals. Would like someone local to Cincinnati,Dayton Ohio markets. But not mandatory. 

Sorry I forgot to put in here that I have worked with my father building custom homes in the past. Though it’s not my current profession I have plenty of knowledge in remodeling and the construction process. He would be assisting me in building the new homes as he is well versed in the process. 

What are your opinions on Building New and selling to build capital to invest in more properties. 

If property does not sell say within 30-60 days convert it to a long term rental.

Michael,

Thank you for this break down it is very helpful. 

Mateo Oquendo-Chandler thanks for the advise.

I see where your coming from on the equity in my house. My thoughts were to free up the cash flow and direct it at investment properties. I’m in for a 10-20 year plan. My dad mainly invested in D class houses and renters. He spent a small fortune on legal fees for evictions and constantly chasing renters down and having to almost rehab the houses every time someone would move out. He sold his last two a year ago. 
I understand the new construction is a longer time for a return. What are your thoughts towards build and sell to build up more capital? Market still seems a bit out of balance and I’m not sure how to determine what a new construction would bring in the Eaton Ohio area. I know in Trenton houses that were 170-210 new are now marketed at well over $300 which I feel is ridiculously over priced.   

Hi all,

I am new to the investment game and would like someone I could connect with in the area to help me develop my best strategy. I live in Trenton, OH so I am between Cincy and Dayton. 

My dad owned 16 rentals at one point and witnessed first hand the troubles he had to the point he sold all his property off. I want to avoid his mistakes. 

I have some money set back for investing as well as equity in my house that I plan on refinancing next month. I had to file bankruptcy two years ago. The banks I have talked too said Refi will not be an issue as my Credit score has bounced back to almost a 700 and my debt to income is not an issue. Main reason for Refi is to get my ex-wife off the homes financing. I could pull an additional 80-100k out for investing.

That all being said I was initially going to pull some equity out and pay off remaining debts so I would only have my house debt and only have the one payment. and use my cash on hand to put down on a rental. But the more I learn and dive into this on a serious level the more I am unsure the direction to take.

The second thing on my plate is that I have the ability to purchase a lot and build  new construction and ether keep it and rent it out or sell it and invest into another build or rentals. My father has built custom homes his whole life and has subcontractors that work for him plus I used to build houses with him also. 

He wants me to purchase a lot large enough to build a few multi unit apartment buildings but I financially could not swing that on my own. My end goal would be to own a few 12unit apartment buildings and a portfolio of single family homes.

Any advice on helping me start out on the right path would be greatly appreciated.