All Forum Posts by: John A.

Hello BP,

The number of wholesale deals I've been doing has been increasing over the past few months (took a long time). I found a 6-unit apartment building I think one of my buyers will like. For those of you who wholesaled apartment buildings before, how did you get access to the property to show your buyer without having the listing agent/seller there? Thanks for the help in advance

That's the thing, it's not near a school. Would you switch it back to a full 3-unit to find tenants easier or would you separate it for cash flow?

Hello,

There's this fourplex I plan on purchasing in the near future, it's a 3-bed per unit apartment building. The odd thing is the realtor selling the property informed me that instead of renting out each whole 3-bed units, the owner decided to rent each bedroom in each unit out separately for more cash flow, which makes sense. So instead of having 4 tenants, I will have now have 12. My question to to all investors is have you ever done this before, how do you market for such tenants, don't the tenants have a problem with sharing a kitchen, bathroom, and living room, etc... Any advice would be appreciated! Thanks

@Steve Babiak- One step ahead of you, I think I got that part already covered as I stated

Thanks to all responses!

@Ted Akers- The purpose of using a private money lender is to avoid the harsh fees/interest rates from a hard money lender, and totally avoiding conventional financing thats way I'm doing it this way. Bridge loans and transactional funding are one of the same these days because some TF are too allowing 30-60-90 days on their funds, which is all I need to close the deal.

@Wayne Brooks- Read response above

@Andy Collins- As I stated earlier, I'm avoiding hard money lenders because of harsh fees/interest rates. They want too much "skin in the game", more towards 25%-35% depending on who you go to. I'm using TF/Bridge loans to fund/purchase the property then using a private money lender to refi, avoiding any use of conventional loans. Use the refi to pay off the TF/Bridge loan. Small commerical building so it wouldn't hurt PML bank account.

@Jeff S- As stated above, TF/Bridge loans are allowing 30-60-90 days on funds deals. When I start talking numbers with the PML, I would have already purchased the property using TF/Bridge loan, I already have full ownership of the property, I'll tell the PML I'm looking to refi on a building a purchased recently, and I'll get a refi for 60% of building value. PML won't know I'm using his funds to actually purchase the property, like wholesaling the end buyer doesn't know what his funds are actually being used for, all he knows is he is getting a property. Same with the PML, all he knows is he's refinancing a property and collecting monthly payments.

Again thanks for responses!

@Matt Devincenzo. The problem is I don't have the $250K+ to buy the property, or they want at least 30% down payment for the property which is tough. So I was thinking I could use a transactional funder which the only thing I would have to pay for is the small fee of 1%-3%, use it to purchase the property, call up the private money lender and tell him I want to refi the purchased property, that way I won't have to wait 12-18 months to take money out. And if I do everything right I could get some money back. This is an example of leverage to the fullest!

New Scenario- What if I use a transactional funding to purchase the property, then refinance not with a conventional lender but with a private money lender with the help of a commerical mortgage broker. I think this is a great idea because I called a mortgage broker and asked about refinance and was told that he knows a private money lender who will refinance up to 60% value of the property. If I purchased a apartment complex that has good occupancy and is undervalued (I have found some), use transactional funding to purchase then refi with private money loan, I think it is possible to get a property next to no money down maybe even getting some cash back lol Let me hear some feedback on this and see if it's a great idea!

From the answers that was posted, I thought those three was in the city. My fault! I still havent visited the city yet so im going off what is being said until I get there. Suburbs it is then, if I can get these homes for cheap and they are not in the city I think it will be a great investment while lowering the risk. Are these good areas?

Better yet, where are the bad parts of Detroit, I was looking at Harper Woods, Hamtramck and Dearborn are these areas good or stay away? Homes in these areas are a few thousands dollars. If these areas are bad, where are good areas where I can get homes for cheap?

@Joe Delia. Can you give me some more info on Harper Woods, the home prices there seem good. Let me know if that is a good area