All Forum Posts by: Ward Conville

Find a private lender that holds a lot of cash and is not interested in the risk of the stock market but is getting zero returns in CDs or money markets. They need to understand the protection that a first lien mortgage will give them. You can offer then 10X the return they will currently get on a CD and still come in at or near what a bank's commercial rate would be. Also, private lender may be willing to finance100% so you can avoid a down payment. We have done this on a few midsize apartments and it has been a win-win all circumstances.

Applied and received loan in name of LLC, but the loan documents only take a security interest in personal property, meaning items like accounts receivable, furniture, equipment etc that the LLC owns, not real estate. They did not require a mortgage or a deed of trust.

Just saw this post.  I have received my SBA EIDL and then loan docs do not include a deed of trust, only a security agreement against personal property.  I have read that many on BiggerPockets has concerns about the loan documents.  I did not have any concerns.  I am extremely pleased with the loan I received.  Also money was in my account 72 hours after signing documents.

I have applied for and received and EIDL. I am not concerned about the loan documents regarding collateral as they are taking a security interest in personal property, not real property. Also it is in the name of my LLC. There is no deed of trust filed. Real property does not secure this loan. The personal property my LLC owns in minimal, other than accounts receivable. The loan terms here are very good, 3.75%, 30 yr am, no payments for 12 months. You will not find this with bank lending.

We use glue down vinyl strips.  Looks very much like wood and glues directly to subfloor. We buy it a salvage store the pallet and can sometimes get it as cheap as $.50 per square foot.  Biggest advantage over carpet is simple clean up when you have an AC back up or even worse a sewer back up.  Also, no carpet cleaning cost when tenant moves out.  

$22,000 duplex. Each side rents for $525.  Purchased from bank with tenants in place.  6 years later, same tenants, never missed a payment.  

I always like to give a potential tenant a chance to give me their side of the story and any details they want me to consider.  I also am more lenient if they advise me of the charge on the front end rather than me discover it during the back groudn check.  Other questions:  What was the outcome of the charge?  Was he convicted?  Was he locked up for 8 years and only been out of prison a year?  Does he have an explanation?  Unless he can explain extenuating circumstances that offset your valid concern, I would likely pass.  Alternatively, if the case was dismissed and he has been out of trouble, working and productive since then, may consider him.  

In my experience, most of my section 8 tenants who are required to pay a portion of their rent will do so to avoid the consequence of losing the section 8 voucher, keeping a voucher is a strong incentive. We will often work with a section 8 tenant and allow them to pay out the deposit over 2 months. I heard someone on a real estate podcast a few years ago say that one of their values in their business was to create as much value as you can, but do not capture all you create. Taking a risk on a section 8 single mom is an example of this. We have rarely been disappointed when we have done so.

Thanks for sharing, Congratulations. How is the property performing?

I recommend considering how much cash you are having to leave in the property or put down as a down payment before deciding the cash flow you are comfortable with. When we do a successful BRRR and have no money in the deal, or even better if we cash out more than we put in a property so that our return is infinite, we are not that concerned if our cash flow is only $100-200 after all expenses. If you have no money in the deal and your tenants are paying down a 15 yr mortgage for you, even if you are only getting $100 per month in cash flow that is a home run.