All Forum Posts by: Brian Fouts

I have a customer that needs some recommendations.

They are in Canada (Chilliwack area I believe).

Have about $2M in equity and would like to pull out 65% of that at prime rate or close to.

They own their business, but don't have any recorded income for past two years as they didn't need any income.  

So their dilemma is getting approval or finding an institution for financing.  

Any suggestions from the BP brain trust?

Thanks

I have an acquaintance selling a 18 unit apartment complex for sale in Lakewood, WA right by McChord Air Force Base (high rental area)

Sale price of $850k.

Two buildings.

Seller has owned since 2004.

50% down, owner carry remainder on note (negotiable terms).  

Possible note terms: 10 year, 30 year amortized, 5%, 3 year min (possibly declining).

Seller motivated.

We did a property where we were actually looking for high risk tenants.  We also knew that they would be VERY limited in their options.  

So, we didn't fix the place up.  No paint, didn't do landscaping, etc.  

We upped the rent 25% over market.

We required first, last, security.

They pay every month, sometimes are late, though.  We only spent $3k on repairs instead of $10k on repairs and we make an extra $400 per month.

Not something I would do as a general business practice, but it fit with that specific property and is working well.  

Yes.  Our business has an entire section/lesson on "cash flow banking" and how it works.  Just about EVERY wealth person or family uses this strategy.  It is also a great way to create family wealth or generational wealth.  

The concept of getting interest on money, then borrowing that money and still getting interest on it, is hard for some people to understand.  

Also consider this... it is a private account, so it as some asset protection benefits.  

You can get this type of account for your spouse and children.

Welcome to BP @Eva Croasdale 

Lot's of great information here if you are looking to change your strategy.  Where are you looking at acquiring short term vacation rentals?

I have a client that at an 18 unit complex, valued at $875,000. Currently owe's $400k to private hard money with balloon in September. Would like a private investor or hard money lender to take over or replace the $400k loan. Property is free and clear otherwise, in a high rent area south of Seattle. Note terms are negotiable (interest only, amortized, etc.). LTV would be very good.

Welcome to BP, you can definitely get a lot of your info here to get started.  Local groups and meetups are always a great option to get your foot in the door.

You can invest in real estate with no money saved, people do it all the time.  My opinion, a BIG misconception is that you must have money to invest in real estate.  Sure, it helps.

By the way, I have a Construction (Project) Management degree.  Quit that some time ago to make my money work for me.  

Something to consider.  How much time do you spend working for your money versus how much time do you spend making your money work for you?  

Get a duplex, rent out the other have... just a quick idea.  

We just opened this up for 2nd round, 1st round closed.  

Are you also looking to cash flow $1k per month after debt payment if you indeed are using the $50k as a down?  Might want to consider duplex or tri-plex.