All Forum Posts by: Owen Dashner

@Aurelio Mallamace you don't need business credit for commercial loans. You need a personal financial statement, 2-3 years of tax returns, and a current rent roll (if you have one). That's it, provided the property meets DSCR coverage minimum for the bank (1.25 is common). You are likely going to personally guarantee the loan.

Get those things in order, then start asking other investors in your area for referrals to bankers, then start hitting the phones.

I do this all the time. Offer cash with a quick close at a number that works for you. If you have an LLC, and you deal with commercial loans at small banks and credit unions who are portfolio lenders, many will not have seasoning requirements. And 80% (sometimes 85%) LTV is possible based on either full appraisals or desk appraisals.

Everyone ends up doing commercial loans anyway eventually. My advice would be not to trip over dollars while picking up pennies - not to mention the ridiculous paperwork, time, and hoops you have to jump through on conventional loans.

A decent deal on the MLS has nothing to do with the asking price, if that's what you are going off of. How many offers are you making? That's how you get deals, by analyzing and making offers. We picked up a 4 plex off of the MLS about 2 months ago and are selling it next week for a $100K profit. We bought it for $36K over asking price and it was still obviously a smoking deal.

Commit to making one offer a day, every day, even if there is very little chance it gets accepted, because you never know.  I guarantee you will pick up about 1 deal per month or more that way.

We typically get about 2 deals a month from PPC, 1-2 a month from our network and/or the MLS, and 1-2 from direct mail.

If the only consideration is how to juice your ROI, then obviously it makes sense to use leverage. 9% COC is less than what most investors look to get for a return.

However, If you are someone who is completely risk averse and hates debt, then that is a whole other topic.

As Erickson stated, without location and ARV, that question is not possible to answer accurately.

There is not enough information in your post to give you good advice. How many partners? Are you flipping or keeping as BRRRR rentals? Are you/your partners active or passive investors (i.e. are any of you full-time real estate professionals)? The answers to these questions may impact how your business should be structured and taxed.

Setting up an LLC can be simple, just verify the name you want is available with the Secretary of State, have your Articles and Operating Agreement created, get an EIN from the IRS, setup a bank account and you are good to go. But if you are involving partners, you need the advice of an attorney and a CPA, period.

Yes, a 9.2 cap rate is really good. What is your COC return?

Check your HUD and Fair Housing laws/guidelines and be mindful of saying anything discriminatory (commenting on number of children, asking if they'd be happier elsewhere, etc.).

https://rentprep.com/tenant-sc...

Go on FB and search for your local REIA and other investor meetup/networking groups. Go to the meetups (either in person or online), join the FB groups and introduce yourself. I am part of an active FB meetup group in Omaha that has almost 2000 members, and right on the page we have a Google Sheet that has a local list of both cash buyers and wholesalers, plus what they are looking for. You might just get lucky and have similar information in your area.

You can also Google: "we buy houses in {your city}" and "sell my house fast {your city}".  Most of the results are going to be local investors with websites.  Just grab the contact info and reach out to them.

My business partner owned one before we got together.  He left to do it on his own (well, partner with me anyway).

They charge a lot of fees and royalties.  He felt he got dinged with fees all the time that started to add up.  Recent feedback I have heard is the franchise has not kept up with the latest marketing tech/methods - they mainly use direct mail and online marketing channels and not much else.

On the positive side, if figuring out things on your own is not your wheelhouse, they provide training and proven systems for how to get started in the business.  You just pay a lot of money for it.