All Forum Posts by: Troy Young

Lakestone bank will probably loan on that if you qualify but they say they need 30% down. I have many commercial loans with them. Also, that price sounds like Port Huron... Make sure it's a legal/registered rental with current rental certificates if it is Port Huron. I looked at 3 buildings with a total of 11 units plus a large garage in Port Huron for $110k but because of some vacancies PH would only allow them to be like 6-7 units total.  

That was what I did to get started... Taking equity in the house I lived in to buy others with cash. I then found a bank that would loan on rentals I owned free and clear and I used that money to buy more. I established my relationship with the bank and it has worked out great. Debt is a double edge sword... used wisely it's a great tool but if you use it foolishly it can hurt you and you are risking your home so make sure you know what you are doing when using debt especially tied to your home.

They seem hard to find or the ones that I do find often want a high interest on a very short term loan. Some want too much information that it's not worth it but finding good ones really help. I've posted offers for investors on Facebook and had friends on there loan. I also bought a house on a land contract from a realtor/investor and paid him off fast and caught his eye. He had a house listed and told me that I should buy it and I worked out a deal where he would finance it and since then he's been my main hard money lender. I also offer purchases via land contract and many times it doesn't work but the times it does really helps out. So I would look for family, friends and referrals first and then offer to purchase on Land Contracts and keep an eye out for a good lender. Don't give up.  

Hi, I used to do mainly LC while I was working a full time job but since I stopped working a regular job (freed up some time to deal with more rentals) and the gov't made it harder (grey areas) when it comes to LC's, I now do mainly rentals with my newer purchases.

ps. only take the Webb properties if you are able to fix them up. I haven't seen any that didn't need much work. I'm pretty sure you're able to take care of the work or at least with your dad (or his connections) you'll be able to.

Hey, I'm pretty sure I know your dad. I was looking to buy a few of his properties earlier this year via land contract. He changed his mind about doing that for me but maybe he would sell some of his to you via land contract. The Webb family also has a lot (probably at least 20) cheap properties for sale. I was going to buy a few from them via land contract but ran into a problem but if you find some of those you like maybe offer them a package deal via land contract. A lot of them are worth 20K or less and they know it and should be willing to drop any listed prices. Talk to Maria Webb at Keller Williams if interested.

Thanks everyone for the info. I was expecting it to be easier to get into this range but I'm glad it's not just me having the higher down payment than I was expecting.

I'm interested in a couple multifamily complexes... one has 14 units and the other consists of 4 duplexes with land to build more. I'm looking at around $250k for one and $500k for the other. I contacted my banker at a bank I've been working with for about 6-7 years and have a great history with them. I asked what the down payment would be on something this size and she said it would be 30-35% down. I have been paying 25% down on SFH and smaller multifamily and was expecting the down payment to be less when I move up to bigger investments. Is 30-35% down usual for bigger complexes or what do you see as the normal downpayment?

I'll have ownership, well my business/LLC will, which also helps get around some of the annoyances of the new (two year old) law making it harder to buy and sell via land contracts. I was just saying it would be like a free building in 10 years if I just pay the taxes and ins. on it for that time. I'm not sure if I'll take it or not, probably won't, but I figured I'd post to see what people thought. It seems like most people just look for cash flow but there is usually more than one way to look at a deal. I started off needing cash flow but now I'm taking a lot of deals with negative cash flow (for the short term), if I don't have to use my own money and will be gaining equity quickly. Most of the deals I do are under $50k and my negative cash flow is only for a year or two before I pay it off and then my cash flow is great on those.

Thanks for the input. I'm not seeing many on here (other posts included) that like any deals that don't cash flow right away.