All Forum Posts by: Account Closed

At this point in the market cycle, I would consider doing a private loan on a flip. That way a lot of your downside Is protected, and if the market turns you can then take that money to buy a screaming deal. I also like @Jim Pellerin's answer a private equity type deal where you are an LP is really nice, i have done a lot of these and have seen great returns the past years, tho the returns are thinning up a bit due to bridge debt market drying + interest rate and cap rate increases

0 Votes

Cleveland, Ohio

Nice work Taylor! What was the total time the project took?

0 Votes

There is no free lunch! Private Lenders are usually reluctant to lend in these areas but if you have an existing relationship it should be easier.

1 Vote

Chicago, Illinois

Chad, be careful when taking on that much of a rehab! Large scope of work, Permits, and long timelines can make a lot of private lenders uneasy.

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Saint Louis, Missouri

Quote from @Jay Hinrichs:

Quote from @Account Closed:

Quote from @Jay Hinrichs:

Quote from @Account Closed:

There are lenders that will do this and even defer interest payments until the end if needed, but usually what ends up happening is something called "net funding" where if you get a loan for lets say 100k, the fees and first months interest will come out. let's say those fees and first months interest is 5k, then the amount that will hit your account is 95k. The lender gets their fees since you still owe that entire 100k at the end of the project. (this is not considering other fees and the other months of interest payments).

Usually, lenders will want to build a relationship with you / ensure you have a stellar track record first before doing this high of a LTC.

we net funded most of our deals thats how it works not all but most. PS nice looking Cirrus did you buy it new ? I bought one new in 04 great experience picking it up in Duluth.

Hahaha I see you are in aviation as well! I am actually still in the process of getting my private pilots license so I have not bought the Cirrus, though when I do go to buy one it will likely be the one you see in the photo. its got A/C and a lot of cool safety features that you don't see in other planes in this class.

mine is a 22 G2 04 serial number in the 1200s like real estate these things have about doubled when you buy them from the factory I bought mine for 430k and now they are over 800k buying
used is the way to go though at this point in my mind unless you can really use the section 179 if you can that's a monster tax deferral . friend of mine bought a new fiki that's a nice bird.. 1000 plus hours in mine. ENJOY and BE SAFE.

Nice! here i was thinking these things deperciated. Also did not know you could use 179 for planes I thought that was just for automobiles. Thank you for the nuggets and you be safe too :)

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Atlanta, Georgia

Bridge debt is typically used in large multifamily deals for juicing returns as they offer interest-only payments, during times when a lot of money is needed for value add

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Quote from @Jay Hinrichs:

Quote from @Account Closed:

Usually, lenders will want to build a relationship with you / ensure you have a stellar track record first before doing this high of a LTC.

we net funded most of our deals thats how it works not all but most. PS nice looking Cirrus did you buy it new ? I bought one new in 04 great experience picking it up in Duluth.

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Atlanta, Georgia

Nice deal!

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Depends on how much work you would like to do. For 500k you can get into 10 real estate syndication projects at 50k a pop that give returns anywhere from 10-15% IRR yearly without you having to do any work besides vetting the sponsor/deal.

on the other end of the spectrum you could flip houses or buy a value add apartment building. It all depends on the headaches you are willing to deal with!

3 Votes

Fort Lauderdale, Florida

All Forum Posts by: Account Closed

Account Closed has started 22 posts and replied 1212 times.

Post: Contracts for private lending and equity partnerships

Post: Best way to use $100,000 cash

Post: The power of adding value to a house.

Post: Is Englewood a good city to invest in real estate?

Post: First timer and needing some advice

Post: Understanding the way of lending money

Post: How do Bridge loans work?

Post: Understanding the way of lending money

Post: FIX & FLIP - OFF MARKET PURCHASE

Post: Buy single-family home in cash or finance a multi-family property