All Forum Posts by: Zac P.

@Roy N. I already have the person in place who wants to finance 100% of the deal cash money. They would not be an "investor", but just financing. I am finding cheap houses between 25-40k with around 5k rehab average that can rent out for $800+. It's hard to go wrong with something like that. And for an investor with multi millions, that's pocket change.

This person just wants a better ROI on their "investment" than what they are getting at a bank. They aren't able to find a deal in real estate on their own. I can find those deals so that's what I bring to the table.

Roy, have you ever done something like this and how have you structured it?

I am wanting to use private money to purchase "buy and holds". These would be 100% financed through private money and I would want this to cover any kind of rehab costs as well. So basically I want to purchase homes in cash and be putting none of my own $$$ into it. I would eventually refi to get that investor his/her money back and in the meantime, be paying interest. My question is, how do you all structure your deals like this? What kind of interest rates, terms, etc do you all use? Any helpful info would be greatly appreciated. Thank you.

@Justin B. Yes, you would think that. However, in my case, I've had to evict 70% of my 20-30 section 8 tenants. Most of those were existing tenants when I bought the property. Crazy!

I have had about 20-30 section 8 tenants. I'd say about 70% of them were bad and we ended up evicting, which is crazy because they lose their S8 after that. A lot of those I did not rent to. They were already there when the property was purchased. The other 30% of S8 tenants have been great. I think you can do really well, but screen them like you would any other tenants.

If it's such a great deal, then I'd find a way get the money! Never, ever let money be your obstacle to buy an investment property. There is so much money and people willing to lend out there. Use a hard money lender for a last resort. If you can find an investor that would be willing to lend you the 35K, then maybe, based off of that, the seller would seller finance her property at a 0 down, low price and a low, locked interested rate. Crazy to think about, but the 35k that she owes could be a great opportunity for YOU to negotiate and to snag a great deal!

Thanks @John Rooster @Will Barnard @Adam Roberts & @Brie Schmidt! I definitely need to make some calls and get legal advice, but I wanted to get some respected opinions as well.

I am looking at buying a duplex that is very large and has a finished basement in each. In each basement, there is a full bathroom and bedroom. So I was thinking, this could be a 4 plex?! The basements have separate entrances behind the house. There are 3 windows in the basement living rooms, but no windows in the basement bedroom or bathroom. There is also only that one entrance in/out. Are there fire laws (restricted access) restricting this? Any other potential issues that I would run into? This could possible be a cash cow.

Someone above already mentioned about commercial loans. You might have to shop around some, but you shouldn't have much trouble qualifying for a commercial loan. I'd stay away from any kind of hard money lenders if you can. Good luck.

You have to honor any lease that they are currently on. However, you could offer them some kind of incentive to sign a new lease under your terms and at fair market rent. Easier said than done, but I've seen it done before.

Hard Money < Private Money