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All Forum Posts by: Matthew Marshall

Matthew Marshall has started 7 posts and replied 25 times.

Post: Private Money Buy & Hold Strategies

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Awesome points guys, I just seeded my company and got 4 private money guys on board, my attorney has one more contract to finish and I am ready to launch!

@Shaun Reilly, do you happen to go to the black diamond networking sessions? I think I may have seen you there a few times. I also heard your podcast on here as well. I will make an introduction next meeting if I see you.

I will definitely look into integrating the seller financing/ private funds for buy and holds. @Mike Bryant awesome to hear that this strategy has worked for you!

Post: Private Money Buy & Hold Strategies

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Hello BP'ers!

I wanted to have a quick brainstorming session and get all of our creative juices flowing. My question is this, if you wanted to use private money as a source for a buy and hold investment, how would you structure the deal? How could you being as creative as possible, leverage into a buy and hold (cash flowing) property using none of your own money?

Here is my first thought, remember I am fairly new at this and am not 100% if this would work or even if this deal would be possible to find.

I was thinking, find a seller that would be willing to do seller financing and line up a private investor for a 20 - 35% down payment. Negotiate a 5 year balloon with interest only payments (for the seller financing). Negotiate a 7 - 8% annualized interest only payment (paid quarterly) for the private money investor. After the first year, take out a conventional loan to pay back the private money investor to increase cash flow. Then work to roll the seller financing into a conventional loan as soon as possible. Assuming the property cash flowed and there was appreciation that took place, you could possibly make this happen. Of course the property would need to be a relatively higher cap rate considering it would need to cover the 6 & 8% interest being paid.

Another option would be a lease option or something of that nature, sublet and exercise the option with private money or a conventional loan.

I would love to hear some other ideas/thoughts, etc. on this!

Post: Wholesale Marketing Strategy

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0
How were the results?

Post: Saved for a small down payment, Now What?

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0
When you personally pull a credit report it negatively impacts your score greater than a bank. It's 1 point for a bank and 5 for a personal credit pull on credit karma, etc. I'd suggest getting a lender to pull the report and then have them send it to you.

Post: Where do you draw the line?!?!

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Isaac,

I would look at the comparable units in the area, where do the potential tenants have to go other than your property if they were interested in moving to the area. Does the area have jobs that support higher rent $? If so planning to remodel and make major additions to the property may make sense. If you could put in $X and boost rents by enough to provide a solid return, you bet I would do it! I know it isn't a end all to your question, it's just a lot of what you are asking is dependent on what your market supports.

Post: Wholesaling Specific Questions

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Hello Everyone,

I appreciate any comments and insight I can get regarding commercial real estate wholesaling, a few specifically I would like to iron out. Please keep in mind I am in the beginning due-diligence phases. I have decided to pursue wholesaling to start my investment career to build up experience and knowledge so I am not very familiar with the actual process of offer, contract and assignment.

1. Purchase and Sale: When going through the P&S typically the seller requires a proof of funds, especially with cash offers. How do you properly execute the contract without having proof of funds apparent to the seller?

In addition, the deposit on the property is typically 5% - 10%, I have read numerous forums, etc. that proclaim that wholesaling is an excellent way to get started as a new investor with minimal capital available. I plan on putting in $30,000 into my business to start however, if I look to flip the contract for a $300,000 house, all of my capital will be tied up in the deal until I am able to find a buyer or my out clause takes effect, is the idea that you try negotiating with sellers to accept smaller amounts of cash? It doesn't seem that many people would accept such a small deposit, would the alternative be that I take out a line of credit for these deposits so I don't have working capital tied up for periods of 30 - 45 days?

2. Lead Generation: I have been looking into a few different places to begin my wholesale lead flow. I am interested in commercial real estate primarily and multifamily properties secondary, so my model will be to target on the residential side 2 - 4 family properties and on the commercial 4 unit + apartments, office and retail spaces. I have outlined my target markets and towns, I have also started reaching out to the town assessors for property owners lists and a special request to highlight and show the owners and properties that have any tax liens, etc. In addition, I have begun looking into the recent eviction proceedings for the counties that make up my target market. I want to put my efforts to the fastest way to profitability, lowest possible cash injection with highest turn to profitability, are there any other public records, places that would be of benefit to me? I have started building relationships with various brokers in the multi-family sector however, I need to get a stronger plan put together before I approach a commercial broker. Any insights into my current approach, etc. would be greatly appreciated, as well as recommendations o where else I might be able to market effectively to commercial property owners.

3. Property Inspection: As a wholesaler, do I take on the expense of getting the property inspected? I understand that in order to be able to properly sell a deal it should have gone through an estimate from a General Contractor which outlines any potential expenses that the other buyer might recognize in their investment. I suppose I am unclear as to whether it is my responsibility or the actual buyers responsibility to recognize these expenses, since I will never actually purchase the property.

4. Closing Company/Attorney: When I go to the closing attorney/ title company, etc. are these expenses that the actual buyer realizes or that I realize? If the wholesaler typically realizes the expense is there a reimbursement? Do I choose the title company/closing attorney or does the actual buyer choose this company/person?

I greatly appreciate any insight and assistance. Thank you.

Sincerely,

Matt Marshall

Post: Start Out Stories!

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Thanks for the share! Got to love it! I started my business when I found out my son was born. I was a full time college student which made splitting my time between work and school difficult however, my situation called for me to do more than the college part time jobs that my peers were comfortable with. I invested $20,000 between marketing positioning, establishing the legal entity, etc. I lost money my first year making the venture quite stressful however, I did not get deterred. For every person that believed in me I had 6 others that said I should just settle for what they called a "real job." I am hard headed and stubborn so this suggestion was not even considered. Long story short, I eventually landed some big clients through brand repositioning and new marketing and sales approaches.

My senior year in college I closed 132k in contracts. So many people give up or do not have the ability to move past the hard times in this life. They have the same dreams as everyone else but when it comes to moving forward with those they find themselves held back because they either give up when it gets hard or do not have enough confidence in themselves.

Just goes to show that if you want something bad enough, you are going to get it! I would like to get into a business that is more hands on and fast paced so I am doing some personal discovery while I have the ability to do so. I have always been interested in commercial real estate investing. I have a friend that inherited a bunch of land in my town which was later developed into a Dicks Sporting Goods, Khols, Target, Olive Garden, TGIF, Chillis, Verizon, GameStop, etc. the list goes on... Anyways this guy sits back and literally collects over $250,000/month from this property. Of course luck was on his side however, I want this and I won't stop till I get it! :) Now that's ambitious right?

Post: Ready for 7 digit success stories?

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Hey Will,

I just read your post, pretty interesting stuff. Still holding this property?

Post: Start Out Stories!

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Hey Everyone!

I thought it might be a great idea to start a story sharing post on how everyone first started their venture into commercial investing! What got you into it? How did you make your first move? What were some of the low points (if any) and what were your successes? How has your life changed since that first investment, is it where you imagined it would be?

I think it is great for young interested investors like myself to hear these stories and to remind ourselves that everyone starts somewhere and to hear some of the learning curves that others had to overcome on their road to success!

I look forward to reading your stories and I am sure others will as well.

Cheers!

Post: Seeking Mentor in Boston, MA Area

Matthew MarshallPosted
  • Investor
  • Boston, MA
  • Posts 26
  • Votes 0

Tom S. definitely good insight! Smart approach, seems like for a lot of deals the right options need to line up in order to execute! I just graduated so I have a plan ahead, firstly remove my student debt, credit cards (which is not much) and my one bank loan which I have managed to pay back more than the minimum payment every month. Once I remove the debt I have a plan to put 10% of all my business distributions toward a liquid low beta investment so I at least keep up with inflation and hopefully more. It will be key to avoid withdrawal penalties, etc. however, I figure with the proper investments my soldiers (cash) can go out socialize and come back with friends. I figure with my current investments and the additional cash, I can save up for the first investment all while I build up my income history.

I was contemplating possibly doing some wholesaling to get my feet wet with deal structures and deal analysis. It seems as though the reward is minimal with quite a lot of time invested. I have a family to support so I need to make sure my time is going to work for me and obviously my financial goals. I think if I work to network, go to community events, meet leaders and explore my options I can put my money to work for me in the future with an actual property investment opposed to middle man work. I might explore a business purchase with property attached and seller financing using the business history as a coverage. Life has so many options!! :)