All Forum Posts by: Chris Ellis

Perhaps try explaining to the gentleman that the asset is losing value every single day. The fact that it has not been rented out in years also causes reason for concern of the actual market. How confident are you that when repairs are made it can even be rented out? 

Focus on why he has let an asset sit there and collect dust and create no revenue. Get him attached to the money that he already lost and will continue to lose. 

I would not recommend contributing funds to do repairs until you get the title in your name. Otherwise you are setting yourself up to get taken advantage of. Good luck.

The down payment on a hard money loan is always going to be higher than the down payment requested for an FHA loan. No hard money place would take second position to finance the remaining to get to the 100% you desire. FHA would also mostly likely deny you taking out another loan to cover their down payment request.

The only way to get creative financing would be going after a personal term loan, unsecured lines of credit, and/or private money. Then having the ability to source the funds and establish a relationship with a hard money lender who is willing to accept such an environment. Just getting started you are looking closer to 20% to 25% as a down payment for hard money. 

Have you shopped around on that interest rate of 6.5% to 7.5%?

What concerns do you have when using hard money in regards to being able to secure the loan? They are generally more flexible than the bank and it sounds like you will have cash to invest. 

Feel free to connect if you would like to discuss further. 

It sounds like you are on track and have the availability of capital to make things happen. You definitely want to ensure you have a good team in place though if you are going out of state. 

What areas are of interest to you off the top of your head? Feel free to connect and I would be happy to help get you connected. 

If you have good credit then you should look into lines of credit. Even with a startup, it is possible to obtain the amount you request. Another option would be to look for a personal term loan but a 15 year loan is not really reasonable. 

Another option would be pulling equity out of your existing 3 unit or home. 

If you push for private money/partner on the deal, then the payback time needs to be severely adjusted. Try to find a way to get the payback time frame down and you will have much better luck. 

The good news is that you have a little time to make your ultimate decision. The important question to answer at the point of refinancing is what the ARV is. Plan for somewhere around 70% of that on the refi to pull out to pay off initial loan and the rest is potential cash for the next project. If it is not enough to accomplish what you need next, then you can always sell to more of a turnkey buyer since you will already have a tenant in place.

3 weeks is pretty standard. You may be able to find a private money individual who can move a little faster but there are a couple other parties outside of the lender that also cause delays. A third party appraisal usually has to be done and then the appraisal created, the title company also has quite a bit of paperwork to complete.

One option would be considering a personal or business term loan/line of credit so that you have cash in hand to play with the cash buyers. Otherwise, you are correct in looking at off market or wholesales. Good luck and keep at it.

That is certainly one tactic to avoid the next step from coming sooner. The question that becomes important is the D.S.C.R. and the ability to obtain the properties individually. What happens if you do that and get to 8 or 10 properties and still want to do more overall?

The answer is a portfolio loan. Now all those properties become 1 in a sense. 

If you are partnering with someone on a property, you should set up an LLC specifically for that property. Then in your operating agreement on the company, you can put in a buy out clause. The unfortunate truth is that someone could also pass away due to accidents and this should also help protect both partners in such an event.

In light of replies and popularity of post there are a couple things to mention. First is that when you are on your cell phone, download the google voice app and you will be able to call out from that number. It will show a strange redirecting number after placing numbers in and hitting the dial but it is not what it shows on the receiving end. Texting replies will also show up under that number. Important: standard procedure is they set up a call screening and have a voicemail that makes it obvious how cheap the strategy is. Smart but there are haters. You need to go to settings and set up a business message since this is its purpose and turn off call screening. In the end, when done properly, no one will know it is a Google Voice number. Side notes: If you are an international traveler, there is no better tool. You can make calls back to the U.S. will even just a laptop or tablet as long as you have an internet connection. The best part is that it is FREE. You can also turn off forwarding or set times in settings. The point is that if you learn how to use it, every campaign, business, property, can have its number. You can’t beat free so any other suggestion is moot but if you do want to get into other framework, move on to Twilio, which is what these other companies suggested use as their routing hub. You do have the right to pay for something for no reason.