All Forum Posts by: Levi T.

I'm more interested in buy and hold, but I'm sure others would like to know on the flip as well.

Raleigh North Carolina just got ranked #1 as a tech hub in the United States after Silicon Valley. It's hot-hot-hot right now. I've been thinking about heading down that way, but with the recent ranking, the market could be to hot. Not sure if your going to find 8 units with 60k down, likely going to need 30% down, plus closing, so 30-40% cash, unless you have an hell of a retirement account with more than 7 figures that the banks will let you lean on for lower financing, so 60k is about 200k of less, 8 units will be 800k-1.3 million in most markets depending rents, and since it's hot right now, you know rental prices are in a bubble, so people want get rich exit money down there. Welcome and best!

Get a heloc, then pay it off later. Bank won't see the debt as you won't make the draw till the day of closing.

I own a few of these. Apartments are deferent beast. Management is 8-10% depending the city, vacancy is 12%, stack repairs at 12% as well. I would shave $50 of each units rents, as market can drop out on you, or landlord is pumping and dumping bad tenants that can't pay, so you need to plan for worst case, rather than best. Also check local market for units size to rent and assume yours need some work. Off the cuff math, I'm coming in at mid 80k net, which puts you in the 6% range. Personally I would be offering in the mid $700k range, but that's just me as I won't go for anything under 10%.

Years ago I attended a toastmaster meeting, after a few meetings, I got to know a some people. One guy really wanted to learn about real estate investing, so he co-invested on a property with me to learn the ropes. A few years later he has 7 units of his own and is doing great. Find out what people do, have lunch with them and see where things can go. You never know, you could get a lifelong mentor, investment partner, and friend.

I live in VA, don't waste your money. MLS is a joke, the real deals are made by eyesight and cold calling owners. I cut agents out years ago, and have closing cost down to about 1% on most deals.

Thanks Ned Carey , I have the banks and such dialed. Banks are very happy with my deals currently, but I think if I did do 9-10 million this year they could flake out as they don't like clients jumping that big of gap no matter how good the deals are, but when you got a good business model, you have a good model. However, as I prepare to press forward I need to insure I start building for the near future just incase banks don't like the growth rate, plus today interest rates will go up one day.. For example; we just wrapped up a deal for 20 of 50 units we could get, the 20 will net us 35k equity per unit and over 220k in gross rents a year being the medium price market provider for the area. We picked up 15 of them last year so it's already a known value, now it's just a matter of buying everything up. I've looked at building a REIT, but I think 100 million is to big at this stage in the game, we have a ways to go for that to be right. So that where I'm somewhat stuck. Build a network and keep going, or find another type of funding vehicle that can handle the growth in between where I'm now, and when we need to convert into a REIT one day.

That sounds fine to me. I normally take a extra 10% off the cash investors cut for having to handle everything, as the cash investors just get a check and does not have to do anything else.

When raising private money, what type of terms do you offer the investor(s)? For example; if you bought 100K property and got 30% from an investor, and the rest from the bank, does the other investor get 30% of rents, or rents and earnings from exit, etc. or maybe you do 100% private capital, and offer a percentages of the cash flow and payoff the debt before exiting. Why type of terms do most normally offer?

Hi folks. I'm finally getting around to checking out Biggerpockets, I've been investing in rentals since the housing bubble popped, doing it full-time, learned what works, and what don't by trial and error. We have a decent size team running a solid portfolio. Things have been growing really fast. It's been really good for us last few years, so I decided it was time I dropped in on the forums to find some key answers that I know my business will be facing down the road. We are currently moving about 1.5-2 million in deals per year, but I want to grow faster. So I need to expand beyond standard banks loans, and see what other funding options are right for my business and the size of assets we are buying. So I'm hoping others that have done it, and built a business like this into the 50 million plus range, or a few hundred million, can point me in the right direction on selecting the proper vehicle for funding, and method of raising that capital at the rate of 2-5 million per round, 2-3-4 times a year. — Best!