All Forum Posts by: Will Gaston

@Rich Cavanagh in that if you go over to the house too much, it might end up costing you more.

@Justin B Thanks for your reply. I like that idea a lot. What are your thoughts on using a Peer-To-Peer lending website like Prosper or Lending Club to borrow for a down payment? Loans go up to 35k and rates would probably be 8-10% for me.

@Chris Williams Thanks for your reply. The banks I've spoken with aren't willing to do credit lines for RE investors. I've tried that route as well. I've even tried to open up an unsecured line of credit for 50k at another bank and they wouldn't allow me to do that because I am in real estate.

Hello All,

I am a "Buy & Hold" investor that has been buying rentals for 8 years now and I own 18 properties (SFs & duplexes) with the average property worth ~150k. I'm looking to buy more, however it seems that every type of lender wants the investor to put some type of down payment (and rightfully so, of course).

But I will soon be to the point where I am unable to put down 25% without putting myself at a liquidity risk.

A few notes on what I've found:

-Hard Money lenders seem geared perfectly for flips but not for long term rentals. They seem focused on ARV's while many of the rentals I buy don't need more than 5k-20k in repairs. They usually have 20k-40k in equity before I do anything, but my repairs are usually cosmetic and don't add a whole lot of additional equity.

-My local commercial lenders seem eager to lend as long as I put 25%-30% down for each property. So for a 150k property that could be 40k-60k after repairs.

-I'm probably going to have to wait another 18-24 months to refinance my current notes so I don't think taking that cash out is an option either.

-I've gotten 1 or 2 sellers willing to carry back a 2nd mortgage, but those are few and far between.

Does anyone have any ideas as to what I could do? Short of using a credit card, of course. Is it even possible to get a second mortgage on a commercial loan?

Thanks!

Justin,

I have required my tenants to deposit rent directly into my checking account over the last 2 years. It has worked extremely well. They don't have to worry about a check getting lost and I rarely have to worry about bounced check. Even the most irresponsible tenants won't deposit a check from an account that doesn't have any money.

Essentially because our properties are of equal value, but his a much more attractive from the investment side. I'm only able to get $1,350 per month and I could easily rent his for $2,000-$2,200 range. Both are in great areas, but his is much closer to the University and therefore commands a much higher rent. I think he's just trying to get out of the rental business altogether.

I'm interested in trading properties with another investor. We both have residential mortgages on our respective properties around 70-75% LTV. Doubt either of us could qualify with the other each other's banks because of how many investment properties we have on our credit scores, but we both have great credit. Any idea how we can do this? Or just how to trade properties in general?

Unfortunately, being a Landlord means that you might get that type of news. A call on a Friday morning saying that you need a $4,000 Heat Pump. I hate it, and it's the worst part of the business. But of course, the pros far outweigh the cons.

Waited at least 2 years before buying anything. At least.

Many college towns in the south are great for cash flow. Clemson and Columbia, SC, Athens, GA, Tuscaloosa and Auburn, AL. Easily buy houses in the 100's and rent for $1,000-$2,000.