All Forum Posts by: Jonathan Studdard

Delayed financing is something I've rarely heard mentioned, and I'll certainly be looking more into it. What does TLDR stand for? Can you elaborate more on the six month wait?

BP,

I have roughly a couple hundred thousand dollars coming my way (depending on the economic climate at the time as it is all tied up in RE in a trust) through inheritance. I know it is tacky and frowned upon to talk about, but it is my soon to be reality, and I don't want to squander it when it comes, so I've been researching. My grandparents made it all through RE investing in their lifetimes, and I want to grow it the same way. I also know that the economy and market at the time should determine which route I go.

There is just too much information in all the books and podcasts and blogs and I'm overwhelmed and need advice from seasoned investors. Everything out there seems to be geared towards people who don't have any of the help that I'll have starting with cash.

I have about $60,000 in equity in my current house, and I am soon to be divorced and sell it around the end of the current school year. My credit isn't great today, so I'll most likely have to get an apartment for a short time while I use some of the cash to rebuild my financial standing. I know that a house is not an asset as it takes money out of my pocket, and the equity I have now is from sheer luck. I've decided to minimize my expenses and dedicate the rest of my life to creating cash flow, and have been researching different strategies on BP and Audible for two or three years now. I've read (and listened to) a ton of books about foreclosures, BRRRR, flipping, holding, multi-family investing, wholesaling, etc.

I *think* I have decided that being an owner-occupant in a multi-family is the best way for me to start my path to financial freedom. But where do I go from there? Should I try to find one that is off-market with room to add value or go for one that is more updated and "safe"?

Can I do more using the money as cash reserves on bigger things altogether?

Should I flip and use the accumulative profits to buy small properties to own outright and rent?

What would your game plan be if you were in my shoes?

How would it change in different markets?

Thank you guys in advance, and please don't hold anything back.

That cash flow seems unusually high. Need more numbers from this deal to learn anything from it.

I was reading an article ( https://www.biggerpockets.com/renewsblog/work-with... ) about delayed financing where it mentions "When you buy the house, you can put the rehab, your insurance, and any other hard costs like this on the HUD. Then, when you refi, you can get the entirety of your capital out..."

What does it mean to "put it on the HUD"?

I read an article here on BP saying that "delayed financing" is a key to making BRRRR deals work because they somehow allow you to bypass the typical 6-month seasoning period you must wait before doing the refi. The article, however, was rather vague on the subject and this is the first time I've heard of it.

1. What is delayed financing? 

2. How does it allow me to bypass a seasoning period and refi sooner than later?

3. What are the deal requirements for this to be possible?

So can someone even buy say a $500,000 apartment complex with $100,000 down and $100,000 in reserves?

How does lending differ on the two?

What is appreciation like on an apartment complex vs SFR portfolio over say 30 years?

What is the immediate cash flow like on either vs in 30 years?

Which is the most realistic option to produce financial freedom for someone starting out with $200,000 in their bank account?

Thanks for the feedback guys. I should specify that I will have $100k to invest and about $100k in reserves. I know REI is a long-term wealth-builder, but the SFR portfolio seems like it will take many years to build and I will be limited to how many I will be able to get. I am wondering what size apartment complex (or even MFR portfolio) I could possibly acquire with my funds and what the cash flow would look like for one versus the other. I don't want to spend the time building the rental portfolio if it will take me 10 years to create the same cash flow that I could have got off the bat with an apartment complex if that's an option.

I have liquid capital coming my way of which I'd like to put about $100,000 to work. Is this amount realistic to be considering buying an apartment complex? I want to leverage other people's money through REI, and am weighing strategies. Building a portfolio of single family residences seems like a long, tedious process of marketing to find off-market properties, BRRRR, supplemental creative finance, etc.

Can anyone with experience acquiring an apartment complex share some numbers from the deal? Anyone have a large SFR rental portfolio that wishes they would have just bought an apartment complex from the start or vice-versa? Why?

We are buying our first list of 1,000 owners and need to append 1,000 phone numbers to go with them so we can follow-up call. I am not trying to skip-trace one at a time all day. Who can affordably append these numbers 1,000 at a time for us?

Just to give an update..

A mentor in my network has told me that we would both sign as managing members (or whatever title) of our DBA name. It will match the name on our company bank account. That is essentially the purpose of the DBA.