All Forum Posts by: Shane Albert

@Damon Pendleton, can you elaborate? I have been trying to figure out a way to work with the owners on the down payment as well, I haven’t came across this option yet.

@Clifford Paul, how common is that small of a down payment for a commercial loan?

Need a little BP advice. I won’t bore you with details of the property, but essentially I’m looking at a minimum of $1,000 a month cashflow with no improvements. If I were to purchase, I will easily be between 1,300-1,500 CF. Asking price is 260,000. I have negotiated down to 240k. The bank has verbally agreed to loan me 240k provided I can put 20% down (48k)+closing costa I have 25k ready and waiting to put into the DP. I could wipe out my emergency fund for the remaining but really don’t want to. What other ways can I finance the rest of the down payment?

Another question for you. There is one other party interested in the property. Neither of us have made an offer yet, so should I be the first and come in with my best? The owner promised each of us to advise if an offer was made. I believe them to stay true to that promise.

@George Lay Thanks for the insight. Pretty comfortable with everything the property has to offer, I guess I am just nervous about writing those big checks. I think I have an illogical fear that my numbers and projections will fail me though I have ran them over and over and over again.

Okay BP to the rescue. I found a deal that would be my first. I have always been infatuated with storage units and small multi family. Well wouldn’t ya know it guess what I found after a year of looking. 6 unit building with 2 addItIonal buIldIngs with 24 storage units. Here are the numbers, tell me what you think. And to save you the time and questions I have checked these numbers and they are rounded up but pretty accuarte Asking 260,000 Rents 4,000 Expenses 1000 Mortgage (w/ 20%) 1500 Saving (vac, maint, etc) 500 Cash flow $1000. Kicker: 20% wipes out all my liquid cash. I could front 10% and borrow another 10% to cover the down. That leaves me with an extra $500(ish) payment a month knocking the cash flow down to $500/ month. Still a deal? What are your thoughts?

That’s one of the question I find myself without an answer. Do I rely on someone else to do the rehab (against my nature as I just completely gutted and rehabbed our personal residence from top to bottom). Also how distressed are you comfortable going? And did you you a small local bank for your loan and refinancing?

That’s awesome! How easy was it to get a HELOC on a rental? I am considering doing a BRRRR but haven’t worked out all the questions I have yet. Did you rehab yourself or hire it out? I’d love to know more.

I must have the same friend asking the same question. I’m gonna shoot for about one and a half times more than what I make now. Though I think I will switch to a less paying, more flexible job when I match my current salary. Similar question, how much does health insurance effect ones ability to switch or leave a job? That seems to be my biggest speed bump.

I am looking for a little bit of guidance and may have come to the right place. I have been in search of my first investment property for about 8 months. I had an amazing deal lined up on a four unit that fell through two days before closing when the seller backed out. I licked my wounds and moved on to finish my person renovation and get that done all while unsuccessfully looking for another deal. As I look for deals I find my interests scattered anywhere from Duplexes to medium sized apartment buildings. In my smaller Northwest Illinois local market, duplexes are everywhere and a few apartments scattered here and there. The income and hands off property management options turn me on to the bigger units. But the price tag and quantity of local smaller units appeal as well. My end goal is become financially independent as soon as possible. I bring home 31K a year at a job I can’t stand. I have an inheritance to help with a down payment but think I may need to partner with some experienced personnel in order to take on a larger building. Anyone ever been in my shoes or have some insight on the best route for me to start? Sometime I feel like I should shoot for the moon, other days my conservative side says to start small and work my way up.