All Forum Posts by: Kenny Simpson

Hey there BiggerPockets Peeps! Thanks in advance for any help/guidance. Here's our situation. We got lucky and bought a SFH in North Park right before things went wild, so we've got a great interest rate and a steal of a mortgage, considering what folks are dealing with right now. Our property is zoned for 6 stories because we're very close to a commercial street with great public transportation. 99 walk score! I've been toying with the idea of scrapping the building and starting fresh, creating a six-story building with at least six units, one per floor to rent out. Here's the thing. I'm not a developer. And while we have a nice chunk of cash in the bank and can get more with home equity, we certainly don't have enough to pay for the whole thing. So here are my questions. Is this something worth pursuing? Would it be smart to bring in a partner/investor? A friend even suggested friends/family raise for the investment, but since I've never done anything to this scale, it seems like a lot to take on on my own. Though, tbh, it's kind of thrilling. I'd want to hire a design-build firm at the very least, but beyond that, would it make sense to bring in a developer who's done this before? If the latter, who to trust? I'm curious if anyone's done this before and has any thoughts on how to start/move forward. Thanks again!

Hey BP,

We do a lot of flips and BRRRRs in Jacksonville FL and San Diego CA. We have a pretty good system right now where we fund with a combination of Hard Money and Private Money.

Hard Money will fund 90% of the purchase price and 100% of the rehab on a draw schedule. Our Private investors will fund the remaining 10% of the purchase price, the first portion of the rehab (to be drawn later from the HML), and the holding costs. Of course, the private lenders usually want equity.

We want to move to exclusively using private money (on a debt loan) and cut out the hard money. We are capable of pooling together a dozen small investments of $10-20k. Ideally, I would prefer just one big loan from an individual or entity. 

What is the best way to raise a ton of private money and not give up equity? 

I'm exploring options to generate enough funds to purchase a $450k investment property but don't have the liquid cash. I have another rental property free and clear and considered securing the funds by taking a mortgage out on it. I'm not certain of my debt to income ratio at the moment, but if I try to mortgage out a property to purchase another, does the rental income I anticipate getting from the new purchase factor into the debt to income calculation? Or am I looking at this all wrong and would be better to just to find a hard money lender to finance this?

If i am interested in Multi Family purchase let say in next couple of years in San Diego. How should i prepare? I have 2 rentals( one condo in Mira Mesa purchased in 2009, one townhome in Del Sur purchased in 2013 both are +ve Cash flow) and have a primary home purchased in 2021. Now want to purchase another one and was thinking whether to buy a multi family or another rental property?  What should i keep in mind? Any guidance?

regards,

namal

Hello everyone,

My fiance and I are new to the BiggerPockets community and are looking for some general guidance. We have a vague idea of what we're looking to do, though it's so early in the process we are amenable to change.

We are both medical professionals (doctor + veterinarian) in our early 30s, no kids. I (medical doctor) am not currently practicing, instead choosing to start a business while doing some consulting work on the side. She is currently practicing full-time as a vet.

Ideally, we are seeking to purchase a multi-family property (i.e. duplex, triplex) in the San Diego area. We would live in one of the units, while renting out the others. After some basic research, it seems to me that an FHA loan or, potentially some type of physicians loan may be the best option. The physician's loan may be tough to qualify for due to our particular circumstances - me not currently practicing and her being a veterinarian (i.e. not an MD).

We have a combined income over $250k at the moment, which could increase as my business grows or I choose to return to full-time work unrelated to the business in the future. We can comfortably provide a down payment over $100k, have a few hundred thousand in assets (i.e. equities, no property), have good credit (both over 750), no credit card debt. Our student loans are almost entirely federal with a couple thousand a month in payments if that matters.

We have so many questions...any guidance would be greatly appreciated!

Is this a reasonable strategy? What other strategies would you recommend?

What type of loan should we pursue? What would we even qualify for at this stage? How can we increase this in the future?

What can we do to better plan and prepare for an eventual property purchase in the next 12-24 months?

Honestly, the only non-negotiable is location. We are not in a rush and are looking to learn from the community.

Thank you in advance!

- Arman

Me and my buddy are partnering up to get Into our very first fix and flip (we both just turned 18 & 19). We have experience in construction and have family connections. Since I just got a credit card my credit score isnt the best (his is 700 mine is 600). the good news is we have saved combined $20,000 to put into our real estate. we have no debt and We both work full time and have Paystubs to back it up. So my questions is do you think a traditional HML will be our best bet or are there any other type of loan types I haven't found out about.

Hello BP Community (San Diego),

I am a MN investor deciding to relocate my family after many years of freezing this time of year. Looking to network with fellow SD REIers and maybe attend some local meetups. My plan is to learn more about the SD market, but continue to maintain and grow my MN portfolio of LTRs (@ BridgingTenants on IG). 

Let me know if there are some upcoming events or groups that have been good for networking and learning the more about the local markets! Will be in the area by the end of January!

Cheers and HNY everyone!
-Jacob

Hello All, 

I'm a new member who's interested in touching base and learning/sharing experiences with individuals who are growing in the San Diego Area. I reside in the town I grew up in, right above Mission Bay. 

I've got a fair insight into general construction (both my father and father-in-law are GCs), and knowledge of commercial/residential and industrial/farmland. 

My wife and my professional careers offer *positive thoughts!* a high cash-flowing opportunity and we're early on in our careers.
I'd love to partner with someone who has experience with one of the better methods of buying and holding real estate for passive income/investment opportunities. 

The number one goal is to learn and grow with the group and appreciate everyone's insight!