All Forum Posts by: Alexander M Dant

Hey Justin, PM me directly!

Quote from @Reid Chauvin:

@Matthijs Pol - Despite interest rates being higher than they've been for a few years, I think most people on the forums would still advise you to use leverage (i.e., a loan) and to not buy the home with cash. This is not a good environment to be illiquid in. Whether or not you should do a cash-out refinance or a HELOC to tap into your home's equity will depend on your unique situation, how much money you need to borrow, your projections for the rental income of the new property, etc. The most challenging thing in the Nashville market is going to be finding a property that cash-flows enough to help you pay off your new debt. That's not to say it can't or is not being done though.

To add on to Reid's point, even though interest rates are higher then they've been in years they still are not that high. You can still get locked into a fixed mortgage for less then 6% and most of what I've been hearing is that they will not stop going up anytime soon. It's all about making your cash work for you as much as you can and I see that best used by leveraging it with loans or if you are buying cash consider BRRRRing so that you can pull that money back out and then some for the next.

Quote from @Sean Bramble:

Really interesting to read this! Well done

this post really caught my attention since it was your first deal with an investor. Can you tell us how you found the investor, and also what you’ve done to position yourself over time to be working with investors? I’m just starting out, and once I run out of capital myself am interested in starting to do JVs/ syndicate, but am wondering if there is anything I need to be doing now to position myself for that in the future (beyond simply doing great deals)

Thanks! 

 Hey Sean, a lot like you, we knew that our personal capital could only take us so far. Our strategy to grow was to start attending every real estate meetup/investor/networking meetup we could. We had the first priority in mind to see how we could help others, and only bring up the investor search as a side bar if it felt right. Our number one rule was that if we had to "sell" anyone to invest with us, then they shouldn't invest with us. As a lot of us know, the great thing about real estate is that everyone can win if you find the right investor's and the right deal.

I would share what we were doing with anyone that seemed interested but never encourage anyone to invest with us unless they made the push. I knew that we knew what we were doing, and I knew that we could give investor's better returns then a lot of what was out there right now but it had to be the right fit for us and for them. 

Once someone seemed interested and seemed to want to join, I would lay out our criteria for who we would want to partner with. If they fit our goals and we fit theirs then we could move forward. If not, we would see if we could connect them with someone that could. 

The biggest thing was that building relationships with other's in the real estate world is what led us to find investors. The last deal we did we had a few people say no to, but said they'd still want to invest in future ones. The person that did invest with us on this one is interested in future deals with us. 

Hope this helps!

Quote from @Reid Chauvin:

Hi @Jack Robinson - keep any eye out for a BiggerPockets Nashville meet up. Just had one a couple weeks ago with solid turnout. Not sure if next one has been scheduled yet but they post about it in the forums. 

I've also been attending these meetups and they've been great.

The BP meetup is every 3rd Thursday of the month. Here's the link for anyone looking to join the next BP meetup in Nashville: https://www.biggerpockets.com/...

@Cullum Stirling & @Parker Brown started it a few month's back and there's always a good showing! 

Hello BP community! 

I(with my business partner Fernando) just completed and am currently leasing up my first deal that was done with an investor. Currently we are doing rent by the room houses in Clarksville, TN, which is a growing market an hour away from Nashville. 

I've posted the breakdown of the last deal that we did and it seemed to get a positive reaction from the forums so I figured I'd put this one out as well to show how we structured it. If you want to see the complete breakdown of our last deal feel free to check out this link; https://www.biggerpockets.com/... 

Below I've copied and pasted from the document we brought our investor to show him the deal. 

The numbers that you see on this one are purposely conservatively very low to what we are actually leasing it out as. We follow the motto that I'm sure you've all heard before, "under promise, over deliver".

We are actually leasing it out as;
-$645/bedroom x 3

-$745/master bedroom plus an additional flat 

     -plus $45 utility fee per room

It was a very nerve racking and big step for us and I hope that this will help some other's out there! The only thing that this does not cover is how refinance/selling will work which if you are curious of how we structured that, feel free to reach out. 

Redacted Address, Clarksville, TN 37040

4 Bed, 2 Bath: 1420 Sqr/Ft

Estimated Completion by March 15, 2022

Purchase Price: $244,900

Total Upfront Capital Needed: $56,980.00

Investment and Return

We are looking for 70% of upfront costs of the project($39,886.00) in return for 12% Cash on Cash Return($4,786.32) annually.

The Property and Loan will be held by KDP Real Estate, LLC.

You can receive quarterly payments of $1,196.58 or monthly payments of $398.86.00.

The Deal

Cap Rate - 7.63%

• NOI - $18,681.24
• Acquisition Price- $244,900.00

Cash Flow- $677.00

• Monthly Income - $2,420.00
• Monthly Expenses - $1,743.00

The Loan- 80% LTV

• Down Payment of 20% - $48,980.00
• Loan Amount of 80% - $195.920.00

Reserves

• Estimated 1 month of vacancy per unit per year
• 8% of Monthly income will be kept for reserves by KDP Real Estate
• $7,000.00 of Upfront cost will be kept for CapEx and Reserves by KDP Real Estate
• All other costs pertaining to 318 Glenn St. will be covered by KDP Real Estate

Debt Service Coverage Ratio- 1.77

• NOI - $18,681.00
• Annual P&I Payback - $10,557.24

Upfront Cost- $56,980.00

• 20% Down Payment - $48,980.00
• Reserves - $7,000.00
• Title Closing Costs - $1,000.00

    **We had the seller covering closing and had the $1,000 as attorney fee's for writing up our documents for the partnership**

Portfolio

Redacted Address

Purchase Price - $230,000.00

Monthly Income - $2,450.00

Monthly Expenses - $1,518.00

MonthlyCash Flow - $931.00

Redacted Address

Purchase Price - $192,500.00

Monthly Income - $2,340.00

Monthly Expenses - $1,388.00

MonthlyCash Flow - $951.00

@Cullum Stirling I love the food idea. If you guys ever need any help organizing, feel free to reach out too.

Hey Bigger Pockets family,

I'm currently under contract for a property and even though I'm using a commercial loan it has still been a huge hassle dealing with the banks and traditional lenders. From the time it takes to get pre approved, to the other hoops you have to jump through I'm looking for another way in the future. 

Taking away Creative Financing and traditional Hard Money Lender, what else have you guys used or heard about that has similar terms to bank financing but is easier to work with and less red tape?? 

Feel free to drop recommendations too if you're in the Nashville, Clarksville, and Middle Tennessee area.

Thanks in advance!

Thanks again for throwing the last one @Parker Brown & @Cullum Stirling! It was crazy to see how much of a turnout it had for a first time meet and I'm pumped for the next one!

Has anybody worked with a real estate attorney in Nashville that they would refer? We are looking to raise money for another deal and want to find an investor friendly attorney to write up the documents for it and to work with us as we go. 

@Cullum Stirling, just registered and pumped for the event! Thanks for setting it up!