All Forum Posts by: Samuel Bell

@Dave DeMarinis, good point. In this situation I'm considering is from a private lender. Thanks.

I have used my own money in the past to purchase investment properties, which has been good but recently I put two props up for collateral and was able to build a relationship with a small bank to purchase my 5th prop. The Bank wants to see how this loan goes before they let me do it again(which I understand). I like the idea of using the private money lender to help me acquire the new investment properties and then have the finance with the bank for a longer loan period (rinse and repeat). The bank doesn't want to do paperwork on one prop at a time, 2 or more props, since they really don't have the people to spend time on small projects. Anyway I truly appreciate all of your advice concerning this. My goal this year is to acquire 4 more investment properties! Thanks! 

Thank you @Ronald Isgate, @Jamie Bateman,@Mike Hartzog, @Jeff S. for your help! Much appreciated! 

I'm planning on purchasing an investment property in the range of 30K-50K, instead of using my capital looking to borrow from a private money lender. This private money lender is an investor with many properties and is sitting on some cash, he is willing to fund me to grow my portfolio. I'm new to private money and I have no idea what the terms would be i.e. rate, how long? I was thinking of maybe 5 years but the positive cash flow would be around $400/month, so to pay off the loan in 5 years I would have negative cash flow. Negative cash flow is ok because my thinking is the property would be paid for in 5 years, the business has reserves that can take the hit, the private money lender would get his money back in a short period, and I would be able to write off the tax depreciation and expenses which will help the whole of the business. Is my thinking wrong? What am I missing? How do do I legally protect myself i.e. a note? How do I protect the lender i.e with his money i.e.a lien? Any suggestions would be greatly appreciated. Thanks