All Forum Posts by: Quentin Hilliard

A commercial property would be awesome... however I have not found any at this time... but that would definitely be a move I would make.

Retirement ... 20 years military 

The thing with hard money is from I’ve seen, my projects are too low. For example, I can take $20k, buy and rehab a house which would bring a cash flow of $700-$900/mth. The hard money lenders I’ve interacted with want projects with a higher value. 

The area doesn’t appreciate much In property value but has very good renters. My duplex brought in $500/each side with one bedroom. 

Or do you have a hard money lender to recommend that deal with low values?

I’ve owned rental property for almost 8 years now, thanks to my dad who owns over 50 units. He basically financed and rehabbed my projects; I only mailed a check! Great dad right! Love that guy! 

Now I’m MUCH older and happy to say I completed my first rehab. Of course I NOW have the bug and I’m ready for more... except there’s this thing called CAPITAL.

I'm struggling with two schools of thought... My father is old school, he tells me to slow down, take my time and build my portfolio slowly. But then there's BRRR that screams go get ‘em tiger! There's also this little ‘angel' on my shoulder whom whispers, "hard money has 30-year terms now... and you're already approved!"

My thoughts are:

1. I like having no investment debt; my properties are my retirement plan and I’m too late in the game to take huge risks... I retire in 5 years (age 43)

2. I’m starting with cash, so my rehabs are not in the greatest of communities more like Oriental, Vermont and Connecticut if we’re talking Monopoly... I’m trying to build a solid foundation of cash flow before I branch off to St. James, Tennessee and New York Avenues.

3. Because my Lite Blue corner value is less than $50k, I'm stuck on the second R in BRRR... I can't finance it... so I have to build my cash flow up, to Repeat

4. I’ve been looking into hard money loans, to finance my rehabs, but the types of properties I’m considering are too small and/or, the fees are not inline with my good sense...and I don’t want to just go get a larger property and barely cover my expenses with the rent if the numbers do not make sense to me. The only way those numbers would make sense is if I were buying in quantity... and quite frankly, I’m not there yet.

I get it, people say, oh just get a personal loan.. well if I can’t get the Refinance, I don’t want a loan... so my only choice is to do cash... Unless YOU, yes YOU...reading this post can provide me some option I hadn’t yet considered. 

Investment Info:

Single-family residence buy & hold investment in Jackson.

Purchase price: $12,500
Cash invested: $12,500

Purchased 3Bd 1Ba home

What made you interested in investing in this type of deal?

I had a duplex that caught fire, needed to replace that property.

How did you find this deal and how did you negotiate it?

Found it on Auction.com

How did you finance this deal?

Cash

How did you add value to the deal?

Hired husband’s cousin who is a painter, took a chance, Only seen his work vis Facebook... hires him as the foreman, he contracted out his buddies and oversaw the whole process.

What was the outcome?

Initially budgeted $10k for property and $10k for repairs/improvements... spent about $23k due to having to purchase AC unit, added bars to all windows, and escrow amount for closing costs.

Lessons learned? Challenges?

BudgetMyReno is an awesome app, enabled me to keep track of EVERYTHING. My challenge was getting workers to clean things... I tried to save money, but hindsight, it almost seems easier to hire professional cleaners.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No, but my painter, general contractor and their team did a helluva job! Initially I was on them, thinking they could be moving faster... but once I stepped back and let them work... on their schedule, they completed everything.