All Forum Posts by: Steven Barr

However, I have toyed with the idea of doing it. The risk seems large though. If I take out a hard money loan to buy a house and rehab it, what happens if the housing market goes down and I am not able to refinance for my projected ARV? It seems that I am then unable to pay my hard money loan back. If this loan matures in 12-18 months, that seems to be flirting with bankruptcy if I don't have the cash reserves myself to pay it off

Thoughts?

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Quote from @Hunter Vigneault:

Quote from @Steven Barr:

Quote from @Hunter Vigneault:

@Steven Barr Generally speaking, yes - though a hard money lender would probably not be the right way to go, as they usually will not lend on owner occupied properties.

Speak with your local banks and see which one has a construction to permanent loan that you will qualify for - that's likely to be your best option.

@Hunter Vigneault What about a private money lender instead of hard money? Or are those the same thing?

@Steven Barr They are not necessarily the same, so a private money lender could be a good way to go as well, though it's harder to find a good one particularly if you are just getting started and don't yet have a track record (I don't know if that's accurate). If you are just trying to get around fronting any down payment, there are sometimes hyper local focused banks that are willing to lend on ARV. If your appraisal comes in with a value that shows 20%+ equity they may be willing to forego a down payment. I have seen it personally, but it will take a lot of calling around to see if they'll do it.

@Hunter Vigneault that’s good to know! Thanks for the insight

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Quote from @Hunter Vigneault:

@Steven Barr Generally speaking, yes - though a hard money lender would probably not be the right way to go, as they usually will not lend on owner occupied properties.

Speak with your local banks and see which one has a construction to permanent loan that you will qualify for - that's likely to be your best option.

@Hunter Vigneault What about a private money lender instead of hard money? Or are those the same thing?

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Is it possible to do a partial BRRRR on a primary residence and essentially just get my down payment for free?

Meaning, I buy a distressed property, fix it up to ARV, then cash out refi to pay off my hard money loan, but instead of renting it out, I just take over the mortgage myself and live there?

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Atlanta RE Investors... trying to become familiar with the local brokerage firms in the area. I know the big names like Cushman, Newport, JLL and they seem to work in the $30+mm space for the most part

What are some names of the local firms that focus more on the $5-20mm space for apartment complexes?

Thanks so much!

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Atlanta, Georgia

I have some private investor money that needs a home. I just need to find deals. This would be my first apartment complex, so not entirely sure we to look. We would be looking in the $5-40 million space and can go nationwide.

Any ideas? Thanks so much for the help!

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I have decent income and assets (six figures) and 750+ credit score

However, my fiancé has about $30k worth of student debt. Still decent income and good credit

Once married, how will these student loans affect my ability to get a commercial loan for an apartment complex?
Safe to assume we’d buy a $2mm apartment with $500k down from a private investor

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Having trouble beating out the cash offers. I am planning to use Ribbon and paying them the 1% fee so we can go to sellers with cash offers.

What do I need to be careful of when using Ribbon for this type of strategy?

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Can I 1031 exchange into a property that I already own?

Ex: I have a 4-plex and a 32-plex. I then sell the 4-plex... can I 1031 the gains and equity of the 4-plex into the 32-plex that I already own?

Also, can it be used for improvements to the 32-plex?

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Quote from @Tyler Peitzmeier:

@Steven Barr

Hey Steven,

I completely understand that the market can be frustrating when losing to these offers. There still good deals out there, you just have to be patient and be ready for when they come. Be careful about all that cash from Ribbon, you don’t wanna put yourself in a bad position.

Hope this helps!

Tyler

@Tyler Peitzmeier What are some way that we could get ourselves in trouble with Ribbon?

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All Forum Posts by: Steven Barr

Steven Barr has started 87 posts and replied 162 times.

Post: BRRRR in a down market

Post: Can I do a partial BRRRR on a primary residence?

Post: Can I do a partial BRRRR on a primary residence?

Post: Can I do a partial BRRRR on a primary residence?

Post: Mid Level Multifamily Brokerage Firms - $5-20mm space

Post: Where Can I Find Deals - $5+ Million?

Post: Student Loan Debt - how will these affect investment prop. loans?

Post: Using Ribbon for cash offers

Post: 1031 Exchanges - Rolling into a different property I own?

Post: FHA Strategy - Losing to cash offers