All Forum Posts by: Robert Painter

Hello,

I have found the perfect investment property. It's zoned commercial with a residential permit. It's on 2 acres of land and includes 5 buildings. It has 2 residual building with 3 units each and a 32 car garage currently being rented out as a sign business. Rents are extremely under valued at this time as the current owner is renting space mostly to family. Despite the low rents it's still bringing in over 7,000 a month.

Rents can easily be raised and it's got lots of space to expand.

It's priced at just under a million and with current rents has about a 7% cap rate.

I have great income and credit and can easily get a loan for this.

Here is the problem I need advice on.

I don't currently have the full 20 percent (200,000) down payment the bank wants to see to fund me.

I plan to sell another property i have and refinance my primary home. If I can get that done quickly and Add that to my cash assets I estimate I can only come up with about 100,000 about half what I need.

I can't get any kind of lone that will show on my credit as it may stop the bank funding.

I do have an LLC but it has no credit except a bank account and a $7000 credit card.

I did ask my realtor to see if seller would consider taking an owner financed second for the remaining down payment but that seems like a long shot.

I really want this property and I'm afraid that if I don't hurry I may lose this opportunity.

Any advice or help would be appreciated.

Investment Info:

Single-family residence buy & hold investment in Kansas City.

Purchase price: $97,000
Cash invested: $18,000

First rental property purchase. Bought through a turn key company.

I'm looking for a great wholesaler in the Vancouver or cascade Washington area. I'm looking to buy a fourplex or duplex fixer-upper

@ Bruce Archer

My all in one Heloc is with American Financing. My plan is to direct deposit my entire income in to this account and set up auto payments for all my monthly expenses. This way as long as my income is greater then my expenses it will pay down very quickly. Then as I build enough equity I will use it to finance my deals. And when I refinance my deals I will also put them in to new Heloc loans until the bank cuts me off. This way I always have access to my equity without refinancing or selling the propertys latter.

@ Lori Greene

Yes I meant to say "interest", not "internet", stupid auto-correct or just poor spelling. Lol 

@Lori Greene my internet is 6% much cheaper then a hard money loan. It's great for BRRRR investing you can use your equity (assuming there is enough of it) to buy and rehab then pay it back when you refinance. And repeat. I'm sure other banks do this to but American Financing dose requires a 700+ credit score for approval. That will give up to four of this type of loan of your debt to income supports it.

American Financing has what that call a all in one loan. It's a Heloc but it is a first lean loan that covers 80% of the value of the home. As you pay it down you can reuse the equity over and over again for 30 years. If you still have a balance after 30 years it turns in to a 20 year fixed rate. This account is also a checking account with check book and debit card to access the equity as needed. 

phone and email but I think Ali is correct when saying I need to find a local project manager I can trust.

Good Question. I'm not sure where to fine someone like that.

Not yet James but it's on my list to study . I will know it well before I buy my first property. Also I will watch your podcast and plan to reread Brandon Turner - The Book on Rental Property Investments chapter 8.

I drive truck for a living and only get home for 3 days at a time every 11 days. I'm concidering getting a team together (real estate agent, contracter, peoperty manager, etc.) and working deals in my area ( St Charles County MO.) from the road. I want to do the BRRRR Method. I thought about just doing Turnkey but don't like the idea of giving up all the equity or having to save up the down payment for each property. but I'm not sure if this will work well when i can not be physically there. Any advice?