All Forum Posts by: Kyle Vogeler

Dario, 

In order to give creative financing advice, I'd need to have a better understanding of the tools currently available to you.

For instance - 

1. Do you own a home that you could refinance or use a HELOC? Equity in your personal residence could be a source of capital for your first rental property.

2. Do you have an IRA? If so, you could designate the IRA as self-directed or take a loan from your IRA to purchase an investment property.

3. Find a seller that is willing to seller finance. In certain scenarios, you may be able to find a seller that is willing to hold a portion of the debt while a bank covers another portion, leaving your out-of-pocket requirements to be low.

4. What I recommend you do, is begin to grow your network. Attend events and meet-ups, let people know you are interested in getting into the game and want to partner on a deal. Your first deal may require that you give 90% of ownership to the other partner (given experience and capital), but 10% of something is better than 100% of nothing and it lets you get your foot in the door!

Leroy, 

Using the equity in your properties all depends on your personal goals. Are you looking to build a substantial portfolio or do you want to maximize your monthly cash flow? 

Refinancing will give you access to roughly 75-80% of the equity you've built in your property, but the cash flow on that property will be significantly reduced. 

If refinancing allows you to buy another property that would increase your total monthly cash flow OR if you are in an area where properties appreciate quickly, then it would be in your best interest to make that move.

But, if refinancing to buy another property has a net negative impact on your monthly cash flow and/or you are in an area that doesn't appreciate quickly, then you may want to consider selling your first property in search of another bigger property.

As for student housing, I do not have personal experience with this, but like the aspect of continuous demand due to a continual flow of students.

What methods of fund raising for syndications have given you the most success? Or has it been a mixture of multiple methods?

Fellow Real Estate Investors,

I am looking for an experienced realtor to list and sell a rental property I own in Huntington, WV. The property consists of 6-units and is fully occupied. Please DM me if you or someone you know is interested.

Thanks!

Fellow Real Estate Investors,

I am looking for an experienced realtor to list and sell a rental property I have in Huntington, WV. The property consists of 6-units and is fully occupied. Please DM me if you are or know someone who is a realtor certified in the Huntington area.

Thanks!

Hi, my partners and I are looking to buy a small to mid-sized multi-family property, but my one partner is also in the process of purchasing a car for $25K. To give you a background, he has no mortgage/rent payments, and with this car loan, his total monthly loan payments will be ~$600 versus an income (with commission) of ~$150K+. Our question is, how will this car loan affect our ability to apply for a mortgage? What about mortgages for multiple properties if we decide to buy more than one? Will there be a significant impact or should he be okay to purchase? Thanks!

 Yes, it was on market. They had other similar offers but accepted ours. Then, after inspection, we managed to work in the seller financing and closing costs!

Hi All, 

I just wanted to share an update on the property we currently have under contract. We recently had the property inspected, and the report came back with some things we could use to our advantage, so we hit the re-negotiation table.

Our initial offer was:

Purchase price: $2,150,000 - (conventional financing)

But, after meeting with the seller on Sunday, here are the new terms:

- Purchase Price: $2,150,000

- Seller Financing for 30% of PP

- Seller pays ALL closing costs

- We provide seller with a case of beer and have a celebratory drink after closing

We were extremely lucky to find terms with the seller that mutually benefited us all, and we all left the meeting feeling zealous. The seller financing and elimination of closing costs on our end allow us to have ample cash during our "construction period" to pay for all debt expenses and every day mishaps. When finished, our loan balances should be somewhere between $4.5-$6Mil, and our ARV should land somewhere between $10-$16Mil (depending on final building plans).

We have a lot of work ahead of us, but my partners and I are inching closer to our goal of financial freedom!

 I agree, there is definitely a lot of risk on the sellers end that we may back out of the deal if we don't get the funds needed for the down payment. Luckily, we are over 80% funded and have 60 days until closing. I would hate to get the reputation as a buyer who frequently backs out of deals, so as long as the inspection comes back clean(ish) then we fully expect to close.  

 We will wind up with $50K-$100K in the deal and although we have no experience with self storage, we have teamed up with a mentor who will get us up to speed and has a proven track record. Aside from that, we do have experience in project management, and have give large contingencies in chance of issues so we reduce the chance of lawsuits. Investor relations is one of our main priorities, so we are ALWAYS up front with anyone who lends us money, letting them know timelines, risks, and how we plan to mitigate those risks. I do appreciate your comment though, I will make sure to work diligently to avoid getting sued :)