All Forum Posts by: Michael Bishay

@Michael Bishay
Screening tenants would fall on the property manager you decide to use. When you are interviewing them I would ask how they screen tenants and what that process looks like. Even if you get a solid PM I always like to double-check the county court records and see if anything was m

I can't speak on other markets, but I work with a lot of investors that exclusively look for section 8 deals in the Pittsburgh market! 

 I've worked with lenders who can go as low as $20k.

@Michael Bishay people misuse these terms all the time, but if you research you will find:

Hard Money: institutional funds, from hedge funds, etc.

Private Money: from individuals, often family & friends, but could be from anyone. Often they lend their self-directed IRA funds.

Michael,

You’re kind of diving into the path of GP / LP Syndication at a very low level. In some instances, people have a lot of time and the wherewithal to underwrite, intelligent investment decisions, but not necessarily the funds or money. This is where your curiosity comes in to play. It may benefit you to find someone who’s very cash heavy, and does not have a lot of time. In return, you offer your time and your expertise And split the potential returns on an investment. This is of course, just one strategy and way you can team up with private investors for the down payment. Good luck.

@Michael Bishay yes and no

Keep in mind that most lenders that are lendng the bulk of the money 80%. will hae limits on how much more, if any, you can borrow. The risk to tehm goes up if you borrow 100% even if it is not all comming from them.  So for some lenders this is a hard no. but it will depend on the lender.  In today's tighter lending market, finding lenders that will alow this will be harder to find. 

Next a lender in that second position is in a much riskier position, so most won't do it especially now.

The person who might is a true "Private Lender" When I say Private Lender I mean what is traditionally called a private lender. TThat is a freind family or associate that lends to you because they knokw and trust you. They are not professional lenders, hence the name Private. They often lend and lower rates and easier terms becasue they may be comparing what they can earn at a bank vs from you. 

However many professional lenders have co-opted the term private lender. This is misleading. You will not find any private lenders on the internet. If they are advertising they aer not "private" are they? 

The overall quesiton is can you do 100% financing? Yes it is possible but not typical. It is much harder in today's lending market campared to the recent past. 

As one member here @Chris Seveney points out regularly, 100% fianncing may not be a good thing anyway. Your risk is high and your ROI is low. You don't have to be Warren Buffett to know that is a bad deal.