All Forum Posts by: Owen Thornton

I agree, I think that it depends on the risk you are willing to take. I personally would be up for this sort of leverage, as I analyze my deals considering the use of raising debt, from investors, or simply using lines of credit, bank loans, etc. 

I think its a very interesting strategy, and a way you could build up rather quick.

Do you know if the nicks in your credit score would come out from hard pulls from the banks, taking out loans? Or can you request soft ones?

Have you ever thought about using business loans for this? 

Hello! I was curious if any of you have raised debt to purchase a property before? Personally, I find it much more attractive than raising equity. 

I was thinking about raising debt for smaller properties, up to 100k. I was curious who you have reached out to in the past to get started down this path? 

Even though it is a "riskier" route of investing, how would you go about raising debt? To me, and for my goals, it would make sense to do so. 

Would love to hear what types of loans you can get like DSCR loans, possibly not even needing to have any documented income - or if seller financing is the better route.

Have you tried any of these strategies, how have they worked for you?

I am 18 years old, and have been waiting to invest on my own for years. This January I have turned 18, and I have been trying to push over this hurdle. I say that others should try to do something along the lines of reaching out to others, trying to connect with other investors, and find partnerships, etc. So far I have secured a potential partnership, and am hoping to get under contract our first property before March. Perhaps I can move in beforehand, through seller financing or raising debt. 

I think that networking and getting involved probably will be the most important thing for me, as with any new investor. 

All the best,

Owen.

I have been reading a lot about creative financing and funding loans through other methods than just paying the 20% down payment. I have been quite interested in how some people use credit cards and small personal loans to pay for down payment. I was curious how this would work… Can you do this with a DSCR loan or with specific private lenders, I would assume it would be a private lender who doesn't care where the money is from.



Can you get a business loan for a down payment and then use it for a private lender? In the end of the day you would make small cash flow but I feel like if you were able to go about these creative means you probably could build a very large portfolio pretty quickly.

I read that some people have many different credit cards. Some have 10, 20, 30, and use it for everything from repairs to down payment… Would you have to use a cash advance for a down payment, and at that point even with a business credit card wouldn’t that be very expensive?

I would imagine that may be a small business loan would work, and do it under an LLC, but would that be some sort of fraud to use it for a purpose other than your "business." Or would it work since RE is your business.

Could you take out a personal loan for a “large purchase.”

Would love to hear about some creative ideas from you guys, things that are not as traditional, like FHA loans and portfolio lenders.



@Don Gouge

How much would you suggest I invest my time in learning the trades as opposed to simply getting licensed?

Certainly you have to accurately understand what it takes to repair and do work…

I was curious how you start at all. Where do you start… could you subcontract things? Or should you have multiple licenses, and have workers work under your license?

@Bruce Woodruff

Thank you! At the moment that seems to be where my strengths are. I certainly know more about running a business and understanding financials, more than I do understand all there is to know about building.

I am a huge fan of the business of building. I have been interested in becoming a general contractor, as I am 18 and looking for experience and to continue my love of real estate.

My grandfather was a licensed contractor, and he had a few different businesses over his time.

He is teaching me the basics, though of course, he is getting older now, and there is only so much he can do in the end of the day. He always “wishes I was born earlier!” Haha.

I’d love to hear from contractors out there and learn where you started.

How did you figure out what you wanted to specialize in? Where did you start? Who got you into it?

I love business, and I love real estate. The close relationship I had with my grandpa leads me to wanting to jump into a world of construction.

Would love to hear your thoughts and recommendations on how to gain experience and learn more - how to get to a point you have the education to apply to your own licsense.

Merry Christmas,

Owen.

Hello! I am looking to find some investors in the Columbus area. I am searching and have found some properties that peak my interest in the Columbus area for STRs. 

I would like to know if there are any off the bat legislation you have to deal with for STRs in the area?

I will be turning 18 in less than a month, so my credit history is not established. I certainly would be also looking for ideas to get around this, as well for establishing relationships with potential partners, if you would be interested in talking.

**

As a partner I provide leads, connections in the market, time, willing to provide more than half the deals value, and willing to self manage. I am looking for partners who have an established credit, creativity, and an in depth understanding of repair and rehab (this is my weak spot).

My strengths include financial modeling, communications, capital for small properties. and connections to the Charlotte and Columbus markets in NC/OH.** (Just from my bio...

That is what I have noticed when reading on STRs there. It seemed like a good location, till I saw all the regulations...

Seriously that is amazing to hear. Would love to connect. I have noticed Nashville is really tying up its market to STRs. I would love to break into Columbus,@Remington Lyman

@Remington Lyman