All Forum Posts by: Mitchell Ridge

@Matthew Rogers The one private lender that I work with wants at least 20% down. While that's tough to come by, but if you do the BRRRR process properly you should be able to recoup that money put down.

@Matthew Rogers If you try to go hard money lending make sure that the cost of the property plus rehab costs is less than 70% of the After Repair Value (ARV, a good agent can help you determine these). If you're able to go to local meet-ups try asking around about private money. These are individuals who personally loan for projects, and they are capped at 9% legally (usery laws). I'm at 22 offers, 4 terminated contracts, and dozens of proposed projects without closing yet, so be prepared that it might not happen quickly.

Has anyone out there ran into this issue? I'm seeing houses with great cashflow, and I can afford the 20% down but the closing costs end up being greater than 5% of the loan total. Any recommendations on how to get around this? I am considering BRRRing these, but I may still run into the same issue come refinance time. Any input is greatly appreciated.

Chemical Engineer, living in Oregon and buying properties in Ohio.

Welcome, Mike. I would recommend getting the financing portion (both conventional mortgages and hard money) ready as soon as possible because you'll be depressed if you find a deal and you don't have that set up. Find out the max you can get, then see if there's anything out there that you can afford. If not, get out to all of the networking events that you can to see if you can find someone to bring the money portion. I'm at about a dozen properties that I've tried to make work that have fallen through, so mentally prepare yourself for that and you'll make something happen. Best of luck.

I was wondering if anyone knows what the rules are about getting a conventional mortgage on a multi-family unit if all units are occupied at the time. Is there a grace period allowed before moving in in that case? Any help is greatly appreciated.

Very sad that I won't be making it tonight, as I came down with a bug last night. If anyone would like to discuss a subdivision deal that I'm looking at, PM me. Hope everyone has a great meeting.

It was great meeting everyone! Carey, was there a plan to put the contact info from everybody here? Thanks for organizing this.

Looking forward to my first time attending. Working diligently on my first multifamily deal, and can't wait to discuss with like-minded folks!

Josh, thanks for the tip! I'll go to the next meet-up for sure. I'm actually looking for a partnership where someone brings the down payment capital and my wife and set up the deal and manage the property. It's harder to get started when you don't have a lot of collateral, but I've really got a fire under me to get this first deal.