All Forum Posts by: Adam Kripke

It would be a mix of light commercial (office, multifamily) and SFH's.

Any other creative strategies out there? 

@Sara K. initially we raised money from private investors and paid them a fixed annual return of 8-12% with the intention of terming them out with a local bank later once repaired and cash-flowing. However we know now that this is NOT the best way to do it. With proper financing strategy we can get more efficient and speed up our timeline greatly. We did this with one package of homes; we bought and paid off nearly $38k in principal the first year with a simple tweak. 

@Sean Carroll Any thoughts on how to grow the principal amount faster? With a standard 15/20/30 the interest is heavy upfront. Maybe do a 2 year balloon with a flat x-amount going to principal each month?

Right now we are using private money to acquire a portfolio of rentals. We pay 8% to 12% interest on their money monthly. However, after a year we are in the same spot. No equity, ton's of debt to pay off, and less cash flow. What strategies would you recommend to maximize our equity building, cash flow, and also create an attractive investment for our private lenders?  

Ultimately we would try to refinance out of the properties with a local bank to get a lower interest rate, but I am open to any other suggestions!

Thank You, 

Adam

We are looking to refinance 50 properties in Toledo, OH with a non-recourse lender. We have already spoken to the local banks and they will only do full-recourse loans. If you know of any blanket loan or portfolio lenders that will lend based on using the properties as security, the assets alone, please provide their name.  Also, they must be licensed in the state of Ohio. If you have had any bad/good/great experiences with them personally please let me know. Thank you!!!

We are the largest wholesaler in Toledo, OH and love this market. We have many investors that purchase in both the Detroit and Toledo areas and nearly all of them prefer Toledo. This is for a few reasons: Lower crime rate, lower vacancy rate, better pool of renters, less SFH inventory on the market = higher retail value, and a stronger economy. The only struggle investors have had is finding decent property management.

I personally invested in Detroit about 10 years ago.  Of the several houses  one of them burn down,  another one was sold on land contract without my knowledge and created a major legal issue, and another remains vacant. Yes, 60%+ returns are attractive but investors need to do their homework on the area before the buy.

An additional comment I forgot to mention.  Flex is by far the most advertised and best marketed property management company in Toledo but when it comes down to customer service, leasing, repairs/maintenance, and communication they're not the at the top of my list unfortunately.  It would not take much for them to get there, but  at this point in time service is lacking.   There are several other smaller companies that have the capability of taking on larger portfolios with the drive and passion to be the best. I currently self manage my portfolio in Toledo, but when the time comes they will be my first call.

Hi Sam, Robert, Arthur, and Bobby,

Sorry to hear about your experience with Jim's company. He means well but unfortunately they cannot keep up with the demands of the market. I work with investors locally, nationally, and internationally to invest in the Toledo, OH market. My company is also a member/sponsor of the Toledo REIA. We know Flex well. I'm happy to make some additional management suggestions for you if you would like. It will depend on the type of property you own and where they are. Feel free to reach out anytime.

• Yardsign in front
• Bandit signs in nearby areas
• Craigslist
• Postlets
• Social Media - use OnlyWire or Ping.fm to syndicate to all 
• RentDigs.com
• MLS
• Ask for referrals from anyone you meet or know

Do it all at once and you will have more leads to choose from than you ever imagined. Happy renting!

Adam