All Forum Posts by: Luke Tetreault

Anyone using Va's to do some cold calling for them? Im Curious on where you found them and how they're working out for you, really attempting to step up my off market outreach. 

Would love to chat!

I have built my business to this point using private money. As we have grown I see value in building relationships with lenders, consolidating my business from a lot of different private guys to a couple lenders would make things much easier and most likely cheaper for me. However, I Invest in very small markets, where ARVS and purchase prices are cheap. The majority of lenders I have spoken with are 75,000 minimums. Which work for the majority of my multi family deals but not my cheaper house flips. Does anyone have an experience with lenders that allow lower minimums. The majority of my flips I am all in around 60-80k between purchase and rehab. I am in NY as well. Thanks!

With all the buzz around AI, and so many business tycoons focusing on it right now. I am very curious to hear how everyone is integrating AI into their business in this industry. I want to take full advantage of it myself, so hearing some new ideas may be eye opening!

How would you structure a deal with a person who is on board using their network to bring in investors? Originally I said I would pay a finders fee per investor. This person is well connected but is now asking for essentially a commission every time their investor makes an investment, so every deal we do together. 2% per 100,000$ every deal. I’m doing about 20 deals a year at this point. Obviously of course I wanted to just pay a finders rather then commit to essentially a long term higher %. And gives me much less incentive to use those specific investors. Does that seem unreasonable? I’m paying 12% for private money at the moment. In my head that bumps me to 14 basically. For context I do not need these investors at the moment. I have a solid list I can fund most of my deals with, I’m just trying to be a little more diversified.

 I think this is my best option, I think if I negotiate that down to 2-3 years it really makes it worth it. Cash flow will be high enough still to justify it, keeps my cash free for other potential opportunities. 

 I like this idea the most but unfortunately neither the bank I have a relationship with nor my private lender are willing to do this. No skin in the game in the eyes of my credit union and my private lender will only be 1st Position. I guess this would be worth expanding on new relationships.

 I have the option to do either as I can handle the deal on my own, I was just curious on others opinions. Using their own capital, use bank financing, or completely zero out of pocket. Obviously I would leave some money on the table using all private money, but would free me up for other deals that may pop up? Bank financing off the bat and then a refinance 6-8 months later seems like a lot of added closing costs? I could be wrong on that, that's just where my mind goes. I guess in comparison to interest paying the private money guy it wouldn't be that terrible. But then it goes back to having cash free for other possible deals.
  I do know the property will appraise as I have already had my lender run through the deal, and confirm worse case scenario would still appraise. 

 Thank You!

I have an apartment building I am currently structuring financing on, I am going back and forth on my options. I have a private lender who is willing to lend the purchase, closings and renovations. I come out of pocket zero. Now to make the loan he has to move a few things around, so to make it worth him doing that he would like to guarantee 5 years of %. After 5 years I could cash him out and refi with a local credit union at a much better rate. It would still cash flow in the mean time, and on the cash out refi I would be able to get out all of his investment due to this being a great deal. Now my question is, would it be worth the 5 years of high interest to be able to acquire it with zero down? Or would you start actively trying to either find new private lenders, talk to different banks, etc... where maybe I have to put some money down, fund the rennovations but I could cash out as soon as I'm done and could immediately get better cash flow with a lower rate. Obviously some pros and cons here, curious what types of opinions you guys have!