All Forum Posts by: Lucas Bonasio

Thank you @Jon H. ! Do you find it easy (fast) to rent those properties in Birmingham? What rent are you getting out of them? Are you using a property management company?

Thank you for the detailed information, @Jon Holdman . When using a broker as a hard money lender, how does that affect the profitability? The broker gets a commission or a percentage of the interest? How exactly does the fact that you use a broker minimizes or "spreads out" your risk? Thank you!

Thank you @Nick Wing . What exactly do you mean by notes? Where do you get them? (Sorry for the newbie questions, but I'm really not familiar with these) You can PM me if you prefer. Thank you!

@Jon Holdman  Thank you for the info.

The rents would be around $1200 and I'm deducting, Property taxes, insurance, property management fee and HOA from that figure to get the $850 NET.

I'm also in agreement about using a property management company. I only have 5 properties and have a company taking care of them (specially because I live in NYC and the properties are in TX).

Regarding being a hard money lender, I  never thought about it, isn't that super risky? I mean, cant you lose you're money if the borrower screws up?

And just going back to my to my original question, how do you think he could use the $3M as down payments for 85 properties?

Thank you very much for your help!

Lucas

A family member has decided to sell his business overseas and invest all his capital in real estate in the US. He is bringing $3M with him.

He would like to buy properties cash and rent them out. Each property he wants to buy would cost about $140K and will give him $850 NET cash flow per month.

In an effort to get the most "bang for the buck" I would suggest him to, instead of paying cash for, let's say, 20 houses, put a 25% down payment and finance the remaining, allowing those same $3M to get him about 85 of those $140K properties, which would now generate a $350 positive cash flow (after servicing the mortgages).

The only question here is........

Is getting 85 mortgages something even remotely possible to achieve? How would you guys go about using those $3M in 70% LTV real estate deals?

@Raymond B.  GREAT TIP! :) Finally got this thing to work... Thank you!

@Sandeep S. - I ended up doing a cash out refi for one of my properties in San Antonio. Used a guy in Austin - definitely recomend him: Eric Weishaar - OneCity Mortgage - (512) 828 6672

I got $90K out of a house I paid $135K for - 30 year fixed rate loan. Interest was 4.735%.

Where in TX are you investing? What type of properties?

Thank you so much for your comment, Shawn! All my properties are worth between $110K and $140K.

Do you mind sharing (maybe via PM) who were the lenders that offered you the loans? Were they 30 year fixed?

What do you mean by seasoning? Is it the amount of time I have owned the houses for or the amount of time I have received rent from them?

Have you ever tried a commercial loan?

Thank you!

Lucas