All Forum Posts by: Logan Graham

I am looking to meet up with local investors that focus on larger multi-family properties. Are there any meet-ups like that here in Rochester, NY?

I have worked with local credit unions and I have been able to finance a property at $45k. 

I have had some friends and family that have shown interest in investing with me. How have you set it up where you use other people's money? I was thinking about them owning part of the property or maybe them just giving me a loan so they can make money on the interest. 

The main items you want to discuss are the interest rate, down payment, and the term of the loan. There may be other items that could play a part it will just have to depend on what you and the seller can come to an agreement on. 

To calculate the deal I created my own excel sheet so I can personalize it for myself but you can always use the BiggerPockets calculator it is a great resource. 

The posts above have great advice and I ditto what they said. The one thing I did also was I was always running the numbers on all the multi-family houses I could find in my area. It helped a ton when I had the cash to jump on a deal. I was so used to running the numbers and I knew exactly what I wanted and when the deals came up I was able to make a quick offer.

This is definitely a math question. You will need to talk to an accountant to get the correct numbers of what you would be able to deduct from your tax bill if you got a loan.

 But in a broader sense real estate is so amazing because you have the ability to use leverage to buy more properties. So you may be able to buy 2 or 3 properties with 20%- 30% down instead of just buying one with all cash. 

I like to work with local credit unions they can be a lot more helpful in my opinion. Also, the more of a relationship you build with them the more flexible they can be with you from my experience. 

I personally would get rid of any high-interest rate debt you have first, credit cards cost a lot of money. When I look at any consumer debt I always compare the interest rate to what I would be able to get with an investment. For example, I got a car loan with a 2.4% interest rate, then with the money, I saved by not paying in cash I bought a property that is giving me about a 15% return on my money. So depending on your risk level you would keep some debt (but always pay off the higher interest rates) and then use that money to invest. But if it keeps you up at night to have that debt over your head pay it off.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

It is a 3-unit building with long-term tenants.

How did you find this deal and how did you negotiate it?

I found this deal through my realtor as an off-market deal because they knew I was looking for a rental property.

How did you finance this deal?

Bank Loan

Lessons learned? Challenges?

Make sure to contact the local zoning board and not just take what their websites say.

If it is a long-term buy a bridge loan may not be the best option unless you are planning on getting the cash to pay it off fast since they are short loans. You will have to find out what his current lender is open to doing if they are still going to keep their mortgage. Depending on how much they have on the loan maybe they would go for the down payment covering what they have left on their loan then they can just pay it off. There are risks though to a wrap-around mortgage because you don't have control of them paying their mortgage every month.