All Forum Posts by: Sergey Tkachev

Welcome to BP and thanks for sharing your story!   Wish you continued success.  Look for the local BP meetups, it's a great way to meet local BP'rs in person. :)

Welcome to BP Joe!  The key to marketing is to have consistency - there may not be much responses initially, but they will will come with time, it's a snowball effect (assuming you're marketing to the right target audience).  Let me know if you get any wholesale deals.  And if you just want to meetup, chat, etc., feel free to reach out.

@Preston Jackson III - welcome to BP, this is a great resource.  Stay active on the site and meet other local investors in the Sacramento area.  Networking meetups are great for that, as are smaller 1on1 meetups.

@Todd S. - As previously mentioned, with an FHA, you are required to live there for 1 year, then you can move. A friend of mine is actually doing that - he purchased a 4plex with FHA 5% down, plans to live in one of the units for a year or two, and then move on to the next deal.

Have you considered looking at 3-4plexes or are you set on duplexes only?

@Jorge Soto - congratulations on your first property.  The best way to learn and get experience is by actually doing it, and you've taken the first step.  I side the some of the earlier comments - even thought this wasn't the best deal, more important is that you're still likely paying less to live there than if you were renting from someone, and you're building equity internally as the loan is being paid off.

Look for ways to increase the value of the property and individual units so that you can increase rents.  That can help solve your cashflow goals.

@Lamont Mitchell, welcome to BP!  Make sure you use this site to it's full potential, it can be a pretty powerful tool :)

@Bill Thompson - Thank you for the detailed response!  I plan to get in and out very short term, under 6 months, maybe less.  In fact, as soon as the rehabbed property sells, that portion of the loan can be paid off, so it can be VERY short term.  So it can be somewhere in between a hard/private money and transactional funding situation I guess :)

@Gordon Cuffe - Thank you for your input - I'd actually be interested in connecting with the lender you mentioned

@George Krajacic - Thanks!  I was actually thinking the same thing, that I can potentially fund the full amount if I use the other property that is already rehabbed and up for sale. 

@Charlie Fitzgerald - Thanks for the Hard Money vote! :)

@Boyd McClean - Yes, you're exactly right that if I had a relationship established I would not be asking this here.  That's a lesson learned going forward :)

@Jeff Rabinowitz - I agree, there are definitely some differences between the two.  The main I see is that a reg private lender may give better terms but a hard money lender is who you go to if you need the funds fast.

Any other input is welcome :)

I am looking at a 4-unit Sacramento, CA that a partner and I want to buy - it needs rehab and will only sell for cash.  Our plan is to purchase for cash, rehab and refinance out into a 30 year mortgage and hold it as a rental.

I would normally use my own funds for the purchase but they are sitting in a recently rehabbed property that is listed for sale.  So I'm looking for short term cash.

The rehabbed property I have listed for sale is worth more than the property we're looking to purchase.  Time is of the essence as we potentially need to show proof of funds next week and close within a short period of time.  The seller is a bank.

Here are my questions:

1) Would you use (a) the property being purchased as the collateral or (b) the property that is already rehabbed and waiting to be sold?  Using the rehabbed property will likely speed up the borrowing process but is it worth tying it up to make the purchase of another property?  Once the property sells the lender can be paid back right away.

2) Would you go with a private lender or hard money, assuming private lenders will likely be less expensive but may not be as quick as a hard money lender?  Or maybe I am wrong on that assumption?  I am still looking for both available options.

3) Is using a hard money lender even a viable option when purchasing from a bank?  

4) What other options are out there?

I'm interested to hear what others would do.  My gut feeling is telling me it would be better to use a private lender as opposed to hard money.  

P.S. - I understand that a lot more goes into the equation but I'm trying to keep it short and to the point.  Let me know if I should clarify anything to make more sense :)

@Derek Daun - do you mean that you wouldn't consider it because of the high cost of the conversion, and hence a high asking price that would not make sense to the end buyer (i.e. they can get something better for the same price)?  

I'm curious as well, although I don't think that's something I'd want to do just yet.  But supposedly it might make some sense - if it's true that each unit sold for $250k and there are 4 of them, that's $1M total sales price.  And $250k per unit is not too bad of a price for something in downtown Sac ... although I might be missing something, then scratch all of that :)

I did mine quite a few years ago, it wasn't that bad.  I do remember that there were quite a few non-real estate specific questions on the exam that I did not expect, such as general business, economics, etc, focused questions.