All Forum Posts by: Scott D Burrows

@Christian Bateman

I would recommend talking with RCD Capital. 

Have worked with them and recommend. 

They also have credit lines up to $3MM based on your net worth. I believe you have to be worth 20% of the credit line. 

Also, be careful over-leveraging. A few interest points can wipe out all profit per door. While you will get appreciation, IF that happens, you are also setting yourself up to be in trouble if you go too fast. 

Highly suggest talking with local lenders, people on here, and then ultimately coming up with a strategy AFTER doing the numbers, to ensure that it will actually be worth your time and make money.

I'm not a lender, but I can say for CERTAIN that conventional is the cheaper and better long-term strategy. 

Once you get large enough you can address that, but for now, I would highly recommend that you stick to conventional and figure out how to make the strategy work from there.... maybe start with fourplexes instead of duplexes? Two fourplexes would equal 8 doors or half of your goal of 16. I would wager that you could do that in a matter of a year (even with seasoning requirements). 

Feel free to connect if you would like. 

A good lender that I recommend is @Diana Muresan, as she is licensed in all 50 states and can help you directly. In addition, she is VERY responsive and will help answer any questions that you might have. 

Anyways, again, good luck and whatever your strategy.... keep it SIMPLE... don't OVERTHINK... and try to think out of the box (AirBnB, short term professional tenants, business credit cards (AMEX and CHASE ONLY)) ... in short a lot of options exist and numerous ways to make money without getting too crazy. 

Just be very careful with interest rates when using leverage. If you are mostly cash, this won't affect you as much, but when leveraging, $50 can be the difference between 0 and -50. 

Good Luck! 

Scott

@Anthony Kondor

The only one I would recommend is RCD Capital. 

Have worked with them and they know the market and how to make a deal work. As well, they give great advice. 

Good Luck! 

-Scott

@Lincoln Kai

RCD Capital is a good company. 

Have not received a loan from them, but went through the first steps of the process and they were extremely flexible and understanding. 

Hope this helps. 

P.S. Get business credit cards, DO NOT get personal credit cards (Capital One DOESN'T have ANY Business Cards (even though they claim they are) they all report under your social and towards credit balances on personal name). 

Good ones that I recommend, American Express Business Plus and Chase INK (make sure there are NO annual fees). In addition, this will also build your business credit, which is extremely important. 

If it is truly a business card they will ask for your LLC name and some will ask for Federal Tax ID (AMEX and Chase did not).

Sincerely, 

Scott

@Yvonne H.

Not sure how this works. 

However, I think your best bet would be to check in with @Chris Mason

Guessing this will need to be a commercial loan, which is why it is probably tricky. Commercial loans, in general, kinda blow :( 

Not that there aren't uses for them, but they will eat away at your long-term cash flow. Before taking one, make sure to very CAREFULLY analyze your cash flow and ensure that you have enough money coming in to justify the terms of a commercial loan, or even BETTER find a short-term exit plan and buy two four-plexes, circumventing needing commercial. After that, wait until the economy cools down and buy multi-family units possibly. 

Just depends on your strategy. 

-Scott

@Israel Gross

The method that you referred to is the most common method among people here on BP, at least what I have seen. 

However, I'm not a lender. 

A good lender for reference, who is active on here, would be either @Diana Muresan , @Chris Mason or at @Andrew Postell .

I'm sure one of them will be able to validate whether any concern is needed with the strategy you mentioned. 

My guess is that you are worrying over nothing :)

Good Luck,

Scott 

@Joseph Costanza

We have loans like that here in the states. However, I do not know the regulations their in Canada. 

@Diana Muresan works with international clientele and might be able to help you. 

But, it doesn't sound too good to be true, as we have almost identical plans here in the US. 

Good luck! 

Scott

@Bryan Boulware

This would be a question for @Diana Muresan

Good luck! 

My impression of the program is basically this:

• Figure out after repair value 
• Find contractor and get approved 
• Get bids on work to be performed
• Contractor gets paid in installments, with check- ins
• At the end, the deal closes  

@Ramsey Lee Rodriguez

Meant to tag @Andrew Postell 

Highly recommend him. 

@Andrew Postell

@Andrew Postell is extremely knowledgeable and is a lender in Texas. 

Highly recommend checking with him. He is always on here helping people with their questions and has a teacher mentality. Best type of lender to work with is one that will help, even if they can't lend to you. 

@Ramsey Lee Rodriguez

@Tara Ballenger Yes. She helped me through a four unit.