All Forum Posts by: Michael Thorne

@Michael Thorne    Yes, we have financed the portfolio of properties for investors with our balance sheet short term loan giving credit for the current value. For example, in your case  assuming 6 properties were worth 450k but you were able to buy them for360k that difference might be most if not all the down payment required.  In other words, very little or no cash might be required.  We then turn around and immediately refi the properties individually to a fixed rate loan using the same appraisal on a rate/term loan which means you can use the current value right away.  So, long story short, you buy  the properties AND get into a 30 year fixed loan with no where near the usual required cash outlay. of course making your cash on cash returns pretty damn nice. 

All of this of course depends on a number of factors including tight appraisal's which can be tougher in rural areas but an example of what we have done in the past a number of times.  

 Years back when starting this is how I really ramped up my investments. A few pitfalls I wish I would of thought of during the process was at the time it more than doubled my tenants, which in turn tripled my headaches. Get notice to the tenants before close of the sale so it is a smoother transition. If a PM is in place and they are being difficult get the owner to perform and let them know the PM will blow up the deal. Having accurate tenant info both leases, and current contact info is huge. You should be able to get a good deal, but as some say no one sells a property that is perfect. You are taking on their problems just find out what those problems are before hand, and have a plan to deal with them. Get proof of payments beyond the rent roll. 

Also if you get some maintenance items that need to be taken care of in the units and plan to get those resolved quickly it brings a lot of good will and eases the transition. 

Keep crushing it! 

@Michael Thorne  Just curious, are you going to be able to pick these properties up at a discount by buying in a package? 

Try Kelly Smith at Easy Street Capital

Hi Michael!

How rural is rural? I could look at them for you if interested - we are a HML out of Austin.