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Updated about 18 hours ago on . Most recent reply

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Murray Reginald
  • Investor
15
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75
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Stategies to Purchase Real Estate/Commercial Real Estate

Murray Reginald
  • Investor
Posted

Hello BP,

I have a strategy to purchase properties/Storage Facility but I need your help, I've been leveraging my personal credit to get funding to invest into real estate, I've obtained 175K in funding on my business credit side by doing this, so I have plenty of down payments for real estate, my plan is to purchase off market deals from a whoelsaler, by doing a bridge/DCSR or even conventional loan, I plan to rehab the property, put a tenant in the property and do a cash out refinance (BRRRR) strategy, but I'm stuck because how will I pay the business credit cards off after liquidating them? The tenant will service the debt, I would like to have a PM, along with CapEx and any other expense, I planned to get at least a $200 cash flow or hopefully more but I still have the credits card debt to pay, how will I get the money to pay the debt? When I do a cash out refinance?

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Chris Seveney
  • Investor
  • Virginia
15,717
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied
Quote from @Murray Reginald:

Hello BP,

I have a strategy to purchase properties/Storage Facility but I need your help, I've been leveraging my personal credit to get funding to invest into real estate, I've obtained 175K in funding on my business credit side by doing this, so I have plenty of down payments for real estate, my plan is to purchase off market deals from a whoelsaler, by doing a bridge/DCSR or even conventional loan, I plan to rehab the property, put a tenant in the property and do a cash out refinance (BRRRR) strategy, but I'm stuck because how will I pay the business credit cards off after liquidating them? The tenant will service the debt, I would like to have a PM, along with CapEx and any other expense, I planned to get at least a $200 cash flow or hopefully more but I still have the credits card debt to pay, how will I get the money to pay the debt? When I do a cash out refinance?


Most likely you wont be able to pay all of it off. Lets use an example, purchase $200k, bridge debt lender gives you $160k to purchase and $50k for renovation. ARV is $300k and you are in it for $210. If you go to hold it a DSCR will give you $225k so you pay back the $210k but the $40k in debt will be down to $25k..

  • Chris Seveney
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7e investments
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