All Forum Posts by: Orion Walker

Thanks for the comments @Richard C. and @James Klafehn,

Yeah, I agree that it seems unlikely that a traditional hard money lender would fund this. Seems like I either need a partner or a private money lender who isn't really looking to be in first position, or personal loan/credit cards strategy.  Good to know that you've done the credit advance option with success. 

Thanks for the input.

Hi Folks,

As the title suggests, I'm looking at an owner finance deal (6 residential units plus 3 commercial spaces,485k asking price) and I think they'd consider an offer with 50k down. I have about 20k available at the moment and I'm wondering what my best bet might be for the additional 30k. Will a hard money lender fund a deal like that? Maybe do a 35k loan from a crowdfunding site like Prosper or Lending Tree? Should I make the offer and then come up with the funds, or wait till I have funds? Obviously time is an issue as I'd like to make that offer and get the place under contract asap. Other options/ideas that I'm missing? Thanks!

Hi @Stephen Preston. Good idea but hard to do, as you said. There's a solid group of Bay Area folks on here that can help. Be sure to set up keywords to see/track the conversations/people and get connected. I'm a couple hours north of you. I got into a triplex now 4plex back in 2012 with an FHA loan and it now pays double the mortgage (piti) so I'm definitely a fan of the plan if you can make it happen. Cheers 

Hi @Tate Brown, I'm up the road a bit in Ukiah. Welcome to the site. Don't forget to set up keyword alerts. I find that is a great way to stay plugged into interesting conversations on BP and catch stuff going on in the area. Cheers.

Thanks @Aaron Hall. Haven't made much headway on this yet so any recommendations would be great.

Hi @Josh Little, 

Sounds like a nice place. I have a soft spot for old Victorians in nice areas. I'd look at vacation rental potential as an option for boosting income from the place. Maybe there's a way to split the house and have a long term tenant and a room or two that vacation rent?

Hi @William Baumann,

I've met with the agent again and met with a friend/potential partner. I've been playing phone tag with the property manager to sit down and ask her some questions. The current owners are willing to carry on the 1.1M with about $300k down, so assuming we could get approved to assume the 2.5M loan we could get into the property for $300k. Still a fair bit of work to be done on the due diligence side, I've been focusing mostly on the "is it possible side". I haven't really made it top priority because it seems somewhat unlikely, but the agent seems positive, and I like what I know of the property/numbers so far, so I should keep pushing on it. Either way I'm learning a lot.

Hi Folks,

In the past my taxes were pretty simple. Lately they are getting more complicated as I pick up properties, manage rental income, W2 job, self employment... I want to optimize my tax strategy, make sure I'm doing things right, position myself for additional loans... Nothing particularly complicated, I just need to step things up a bit. Anyone have any recommendations on a good tax person familiar with RE investing? Ideally someone in the north bay, Santa Rosa... but I could do east bay, or working with someone remotely could work too. 

Thanks!!

@Ben Leybovich, you certainly have a knack for getting interesting threads rolling. As a newer hungry investor a lot of this thread makes me cringe. I've been meeting with a guy about a 47 unit place in my town and I was getting excited about the notion that I might actually be able to get into something like that (just need to come up with 300k:). I guess this thread is a good eye opener as to where folks see things right now. 

But the general thinking in my local market (two hours north of SF) is that we tend to run about two years behind San Francisco. Prices have come back up, but not to pre 2008 levels. Seems like that tends to be part of the cycle, where people start reaching farther out from urban centers looking for deals. And economic recovery tends to have lag time out here too. So, maybe this is a good point in my local market where I can partner with bay area folks to do deals? 

@Brian Burke, maybe we can lure you into dropping some wisdom on this thread? There's been a lot of discussion of riding the wave and finding the right wave to ride and what not. Now we just need a few good flying metaphors :)

Thanks for the great questions @Wendell De Guzman. Here are some answers:

1. Here's my current projections. Would love feedback:

Monthly Income:
Residential income (6 units): $5500
Commercial income: $2000
Laundry: $200
Total: $7700

Monthly Expenses:
Mortgage Payment: $2750
Taxes: $500
Insurance: $250
Utilities (what isn't paid by tenants): $100
Water/Sewer: $150
Garbage: $150
Downpayment/rehab loan: $750 (borrowing 150k)
Vacancy deduction on residential (10%): $500

Vacancy deduction on commercial (30%): $600
Cap Expense set aside: $700

Net: $1,250

2. Have not yet discussed terms on owner financing. I would probably need to start that conversation in my offer. Not sure what terms to suggest.

3. I'm open to suggestions on what would be most appropriate to offer downpayment lender.

4. I own my personal residence outright but cannot use it as collateral because of shared family ownership. I own a triplex (now 4plex) purchased in 2012 that cashflows well and could be used as collateral. Based on informal market valuation of local appraiser I have about 20% or 60k equity in that property. I will likely be closing on a two house property in the next couple weeks that should have significant equity after rehab, within 3-4 months.

5. I have not previously done a commercial deal but I do currently manage 5 doors and have credit above 750.

@Arlen Chou, last time I checked 100k is 20% of 500k, not 1M :) I'm a little hesitant to say too much as I don't have it under contract. Ideas on how to structure an offer and/or get it under contract would be much appreciated. I don't live in the 4plex, and probably don't have enough equity yet to get a line of credit on it. Personal residence is off limits due to family co-owners.

Thanks for the feedback all!