All Forum Posts by: Frank Teshima

@Jeff S. Thanks for the reply! I really appreciate it! And no worries about being blunt! It’s good to hear what other investors are thinking!👍🏽 Thank you!

Hey everyone, I have found a potential private lender to fund my deals, and i am wanting to use their HELOC to purchase 100% of the property. I am having a hard time trying to figure out how they would make money. I am going to structure the deal at 8% interest for 3 years, with a balloon payment after that. How i am calculating my interest payment every month, is ((.08 x Purchase price)/36 months). At that, the number totally work out for me, but it does not make sense for my lendor. By running the numbers on their side, their bank is charging them a 4.5% interest for the HELOC, which after running numbers, they are basically having to come out of pocket to pay their interest for their HELOC.

Is there anything that i am missing? any recommendations? I would be happy to elaborate on anything that is unclear. Thank you in advance for all the help>

@Andrew Syrios Thank you very much for your help!! That was really helpful for me and i really appreciate you! 

@Chris Levarek awesome! Thank you for the insight and tip! I really appreciate it!

Hey fellow BP members, I have a private lender that has quite a bit of equity in their home. I found out about it and approached them with an opportunity to put that money to work. I told them that instead of taking my business to the bank, ill do business with them. My plan is to buy a residential multifamily property, using private money, pay them exactly how i would pay a bank. and in order to add value, I would fix up the units, raise rents, and then refinance with a bank, pay off the private money, and just recycle the private money. 

With that being said, first of all, is this similar to what people do? and how do i structure it? if possible, could someone share what their terms are with their private lender. Any experiences and tips are welcome!! Thank you very much for the help!!!!

@Bruce Lynn thank you for the list! Really helpful!

@Allan Smith thanks for the reply and insight! My goal is yea, to be full time in real estate, and quit my full time job, I just feel like it’s gonna be a challenge with all that my job consumes me now. I guess I’ll never know how bad it’ll really be until I actually do it, right? Lol.

Hey investors! The last couple months I’ve been wanting to change career paths due too long hours at my current job, which is really making it hard for me to invest. I work 55 plus hours a week, Mon-Saturday, and I really don’t enjoy the work itself. What I want to do is find a career that takes up less of my time, so I’m able to invest more in real estate.

The only thing that's keeping me here is getting bank financing, which is crucial for my goals that I have, which is BRRRR'ing. I don't know how I would refinance out of short term financing.

Has anyone had a similar situation to what I am currently going through? Thank you in advance for any insight!👍🏽

@Brad Hammond thank for the help!! I really appreciate it!

And thank you @Matthew Crivelli !! I totally agree with what your saying, what are some experiences you’ve had with lenders, that made you not want to work with them again?