All Forum Posts by: Gere W.

JV partner and I have 120k cash. What would you do with it?

Any deals out there to send my way? Located in Ohio.

Interested in: small multifamily (sub 5), small apt (sub 20 units), self storage. Limited by cash purchase price. 

I know markets in Buckeye Lake, Lancaster, Delaware, parts of Columbus, Sandusky, Port Clinton, Zanesville, etc. Basically the outskirts of main cities. Deals all over. Just gotta find em. 

Partner and I can rehab ourselves and are looking for fixer uppers for flips or BRRRR with cash. No rehab needed is great, sure, but with only 120k to cover everything, we're limited and I'm assuming our budget would only find us cheaper deals that need work/rehab.

Obviously, it depends, but how would you divide up that money? %? I'd say 90k for purchase, 20k for rehab, 10k for closing costs, commissions, fees, other mystery and unexpected fees and things that come up. Are my allotments too far off? Costs involved in cash purchase: purchase price, rehab, commission to both agents (unless off market), insurance, and........? what other costs am I missing? 

Might not use an agent if I find off market deal from wholesalers to save on commission, but fine using an agent. 

I'm talking about buying with cash, pulling out cash from one house to purchase the next vs cash for down payment and getting traditional loan. Sounds like BRRR, but isn't. Hard to put my question into words.

Why do this? Because can't qualify for loans right now, but JV partner has 120k cash. How can we churn that cash over and over to work for us? Thinking of ways to artificially leverage with cash only.

Examples with clear numbers would be appreciated.

Here are my particulars:

Buy house with cash for $100k. That means I have 100% equity in the house now? Can I now turn around after cash purchase and pull the 100%/100k equity/cash out...…but how? Cash out refi? How could there be a refi if there's no loan to pay off? Use a HELOC? Get a traditional loan now? Only after forced appreciation (rehab)? What if house was unchanged and no rehab? Other methods?

BRRR seems to only be with loans, but how to BRRR with cash purchase? What are the differences? I understand leverage vs cash debate, not my question. Me and JV partner can't qualify for traditional loans right now, but have cash to purchase. Otherwise, I'd leverage for sure.

Are there time limits to this? Ie. can only pull cash after 6 months after purchase? Immediately able to pull cash out after cash purchase? What sets or determines this timeline?

Does the market/appraised value of house affect it? How?

Only able to do this with a rehab to force appreciation and buffer the value? Otherwise, I'd assume HELOC/whatever would do 80% LTV and I could only pull 80k cash out of that 100k. But with appreciation, say ARV of 125k, can I pull out 80% again and get 100k cash?

Only possible with conventional lenders? Private/hard money? Not as common, but negotiable like anything else? How would lender secure the loan? 

Howdy! 

Looking to start with my first rental. Open to most Ohio markets. I'm focused on: Buckeye Lake, Newark, Heath, Granville, Columbus, Delaware, Zanesville, Port Clinton, and Sandusky.  I live around and frequent those areas and know them and the markets. Sick of books, podcasts, interviews, articles. I'm ready to pull the trigger and take action. 


***I'm looking to JV with a capital partner. I'd be the operating partner***

Interests:
-small multifamily (<5). BRRRR for long term rental. Possibility of short term rental, depending on area.

Other interests and experience researching/analyzing:
-apartments, self-storage, parking lots, mobile home parks, small commercial, and house flipping 

I'm looking for properties in need of rehab and off market, ideally. Foreclosures and pre-foreclosures would be preferred, but everyone wants that.

To expand my network, looking for:

1. Wholesalers

2. Private or hard money lenders

3. Contractors

4. Agents

I appreciate any input, thanks. 

I'm interested in Detroit market. I'm in Ohio. I'll message you. 

Where to find information of developing land, what zones mean what, state vs county zoning, permitting process, the steps of start to finish. I can't find clear explanations of the entire process, just vague bits, unclear, glosses over a step(s) that don't explain the actual physical steps involved. 

Ex. Taking plot of land and wanting to build storage units on it. What's first step? Where to check if this is even possible? Zoning? Zoning types? Who to call first and check? Civil engineer? When do they get involved? City planner? Architect? Inspection? What are the timelines of these processes?

Good resources I can find these exact steps?

I'm not necessarily looking to split for my first few (although currently I don't have the capital to put down), just curious what the ways are that people do so. 

What are ways to split ownership of property? As in, the actual logistical steps. Who to talk to, what to bring, what to arrange, costs and fees, issues, timeline, etc. 

Types of ways to split property? LLC? S Corp? Trust? What are typical ways people use? Why that way?

How many ways are there to split property ownership?

Is there a limit to how many people can go in on a property? 2 vs 1000 differences?

Instead of getting a $100k loan for 1 house, how could I get a $100k loan for say 5 down payments of $20k, or 10 down payments of $10k, etc? Package deal? Would that technically be a piggy back loan? (100k for 10 down payments, on 10 properties with 10 separate mortgages or 1 package mortgage for 10 bundled properties)

What are daily/weekly/monthly actionable steps I can take to improve myself and progress forward into real estate?

Currently, have been pre-approved and have been putting in offers on properties, but have been outbid so far every time. I feel like I've plateaued in progress: first was the interest stage, then started talking to people/reading books/videos/bigger pockets/podcasts, etc., then finally took action after learning enough and got pre-approved and started putting offers on properties. Now what? I'm looking for things I can do to find more properties, create systems, develop a business perhaps, network more, and develop skills. 

@Chris Davisson recently reached out to me on here, continues to give me great advice, and also introduced me to a local real estate group meeting each week. That is a huge motivator and I see such potential growth from him and the people in that group. That has helped me gain perspective and motivation. An immense thank you to Chris. 

I'm looking for daily actionable steps I can take daily/weekly/monthly to make progress. Something to take me to the next level and to pick up good habits that help me learn and grow in real estate. I'd appreciate it. Thanks. 

What are ways I can make myself more attractive and useful for potential partners, lenders, networking in general? How can I bring value to other people's businesses, properties, etc? What skills would be good to bring to the table and learn? 

Personally, I can't bring capital, but I bring problem solving, creative thinking, consistency, time, good with my hands, people skills, ability to manage and multitask, logical and organized, and can learn most systems quickly. 

What are some actionable steps I can do to bring value to people in the real estate game? Thanks for any perspective.