All Forum Posts by: John E Ceisel

Hello BP!

A condo (in a building I already own several units) is going to be put up for short sale in approximately 2 weeks.  The seller, knowing that I already own there, offered to sell to me cash before going to market.  

Unfortunately, the recent gut remodel of a triplex I bought has drained my cash funds.  It would be a shame to see this one go to another investor as I almost own the majority of condos in the building.  I offered a rent to own option (and to bring their mortgage into good standing), but the seller is not interested and only wants cash.

I think a standard mortgage is out of the question in the short time frame.  I'm in California and the cost is approximately $155k for the condo (plus I'll need $10k for the renovation).

Any ideas on how I can fund a cash purchase?  I understand hard money typically doesn't lend 100%.  I have sufficient equity in some condos I own to cover $155k -- however, since they're rentals I have had a hard time pulling money out of them through standard financial institutions.

Any ideas?  Looking for a creative way to generate funds to pay 100% cash on this investment property.  Thank you.

Great job Jeff! 

I've done 3 condos in a similar fashion.  Only one of them was a live in remodel.. and I have to agree it was the most difficult.  The previous owners mistakenly put the labels on the subpanel backwards and I got electrocuted replacing the dishwasher.  Voltmeter anyone?

That said, it was worth it and paid off big time in the end.  Keep the momentum going!

That's a great option for when I look to divest of the holdings.  Thanks Bob!

Hi Brian,

Just want to drop a quick note to thank you.  I setup a meeting with a local lender and presented my business plan/numbers.  They agreed to lend on non-warrantable condos based on my cashflow and assets.  This will be a great resource going forward!

Hello,

I own 3 out of 9 units in condo complex (it's a single building complex).  Because that is 33.3% of the units, the complex is no long warrantable according to Fannie Freddie guidelines.  In the past, I was able to get portfolio loans from Credit Unions to finance my purchase of the units. 

There are 2-3 units coming on the market in the near future that I would like to grab as it'll be low overhead and I know the market rents, the building, and am on the board of the HOA.

That said, I am having trouble getting financing.  They'll be around $150k each based on current market prices.  I'm happy getting one or two of them for the time being.  I can't get conventional financing or any more portfolio loans (not a primary residence). 

Any ideas on how to finance? I have a HELOC available with $53k, but not sure what the best approach is to get the other $97k. I'm going to have to think outside the box on this one (maybe credit cards and/or hard money, but those are all very expensive). With decent financing, these will be cash flow positive. I appreciate any feedback/thoughts you can offer.

Funding Strategies (some brainstorming)

• Down Payments/Cash
  • Self
    • Cash from checking/savings
    • 401k withdrawal
    • Sell property
    • Sell car
    • Credit card advances
  • Banks
    • Personal Loan from
    • HELOC on existing property
    • Home Equity Loan on existing property
    • Refinance existing property
  • Other
    • Hard money lender
    • Personal loan(s)
    • Investors
      • Legal ramifications?

• Mortgages
  • Bank
    • Conventional mortgage
    • 203k FHA mortgage
    • Investment mortgage (20% down)
  • Credit Union
    • Conventional mortgage
    • 203k FHA mortgage
    • Investment mortgage (20% down)
    • Portfolio loan
  • Other
    • Take mortgage on directly from seller