All Forum Posts by: Jordan Alexander
Jordan Alexander has started 8 posts and replied 105 times.
Post: Should I start a LLC to buy my 2nd property
- Posts 106
- Votes 39
If you go to a bank and tell them you plan to purchase a property with an LLC, then they will require a bigger down payment (typically 25-35%). Look into creative finance options or DSCR loans. You could also keep house hacking year after year.
Post: Cash flow in the Bay Area
- Posts 106
- Votes 39
I do not invest in the Bay Area but I know it is very expensive and hard to find cash flowing properties unless you have a lot of money, so I would look in other markets.
Post: Invest in Cashflow or Appreciating property?
- Posts 106
- Votes 39
Equity comes, equity goes, but the cash will always flow! - Pace Morby
Buy for cashflow! When you buy for cashflow you will be able to survive any market cycle.
Post: Looking For A Strategy To Purchase My Rental Property
- Posts 106
- Votes 39
I would say private or hard money lending.
Post: Setting up LLC out of state
- Posts 106
- Votes 39
Talk to an attorney in the state you are looking to setup an LLC in.
Post: Off-Market Deals/Creative financing
- Posts 106
- Votes 39
Google maps has every single on and off market deal!
Post: Considering to Offer Tenant Seller Financing
- Posts 106
- Votes 39
I believe NC requires a real estate attorney to handle deals so find an attorney in your area and let them know you want to seller finance the property to your tenant. They should be able to walk you through the whole process. If you're talking with an attorney where you are having to teach them about seller financing, then find a new one.
Post: How would you structure a win-win deal for a friend/ hard money lender?
- Posts 106
- Votes 39
Find out what everyone's goals are and make sure the property cashflows from day one.
Post: Seller Finance Note Words of Wisdom
- Posts 106
- Votes 39
I agree with @Eliott Elias! Try to get rid of the balloon payment. You want to have long term, especially if you plan on holding onto the property.
Post: Creative Financing for Down Payment on Multi-Family Deal
- Posts 106
- Votes 39
Quote from @Brett Deas:
One thing you have to realize before doing that is you are essentially leveraging 100% of the property, in all terms that is very risky.
But since you know understand that start with the friends and family round. That is where everybody starts and truly all you need if you're not raising millions. One thing I will say is that if you are not comfortable yet going to your friend and family then you shouldn't be raising from strangers yet either. That is a step that a lot of people try to skip but never ends well.
Brett, I would argue that leveraging 100% of a property is not risky as long as you can control your variables. Make sure the property is purchased with long term, fixed-rate debt that cashflows from day one. For example, person A goes to buy a property worth $100k and puts down 30%, so they have a $70k loan. Person B finds a similar property for $70k but does not put down anything so they also have a loan for $70k. Who is taking on more risk? Person A is because they have $30k into the deal whereas Person B does not have anything into the deal. I think it comes down to deal, then debt, then equity. First, you find the deal, then you try and get 100% debt, and if you can't then you bring in equity.