All Forum Posts by: Joseph King

@Jeremy Pace So to be clear your suggestion would be to have the owner seller finance the 20% (80k) as a second mortgage. Take the 20% use that as the down payment to finance the commercial loan. Next I rehab then I refinance and take out equity of the new appraisal to use for future projects. If I am correct how long is the usual wait to refinance, I'm assuming longer than a year.   

 I tried to tag using the @ but It didn't work 

@Tony ho.  I see, I have more studying to do but I like the idea of using the seller to finance the 20% down payment as a second mortgage instead of using the hard money lender because it gives me a longer amortization period. My question though on the rehab portion is that let's say the property only needs new windows (12k) once I refinance would I really gain much equity? Again using a made up example the property is bank assessed during the 1st loan at 500k and and the sales price was 400k and I put 80k as a down payment. From my understanding I have 180k I  equity already or am I still not understanding?

 First how do I tag instead of  quote. 

It sounds like that is a fix and flip method, I'm looking to use as rental property. Sorry if I mis understood. 

sounds good to me thank you for the help. 

 Thank you for your feedback. To answer for question I made up the 500k but no  I've learned that what the bank will asses thw property at and what the owner tells you the value is are two different things. 

I understand, can you explain how they would loan me 20%. I'm a newbie so I want to limit my mistakes. Dumb questions might be asked 

I see my fist mistake with the 80k down  my loan would only be for 320k but Ill still only take out 100k in equity.

I apoligize if this is the wrong forum, it's the closest I could find for my question.

So essentially I was listening to a few of the podcast about creative financing and I came across a strategy I somewhat  understand and essentially its no money down investing. Now my understanding is going to be very general so don't blast me for leaving out details. So it starts,I came across a 12 unit deal for 400k assssed at 500k and 11 of the 12 are rented all the numbers look good and Im ready to finance this deal so I choose to use a commercial loan 20% down with a 25 yr amortization. Now I don't have 20% of 400k which is 80k, so I use a hard money lender to fund the down payment with a short term loan of 1 year im not to sure on the rest of the rates. So I get approved for the loan and the hard money lender funds the 80k. Now I close on the property. Next in a few months I refinance the property with the assessed value at 500k  and take out equity against the property 100k. I pay the hard money lender the 80k plus the interest and keep the remaining for repairs. 

Feel free to tell me how screwed up and confused I am, we were all new at one point. Also excuse any grammar mistakes.

 Thank you for the advice, very helpful and I have every intention to use an llc on my properties, I do have a strategy I want to try but I'm unsure of the details I'll write it in another post, please feel free to nitpick and tell me how dumb I sound

Hello BP community,

A quick intro about myself, well I am currently active duty Marine Corps stationed in Okinawa, Japan. My interest in real estate come from me knowing that I don't like working "for" other people. So I thought how can I become my own boss doing something I would enjoy and not feel trapped. So I took an interest in investments in general. Finally I decided real estate was best for me. A great way to bring in passive income. So once I made that decision I narrowed my criteria down to multifamily, starting with 4plexes with the end goal of 100+ unit apartments and hotels.