Studied the market, buy/hold strategy, now I need equity partners

I am new to the site, but I have been involved in real estate investments for over 5 years. In the past I have scowered the market to find the best deals, and have acted purely as an agent. I have been studying my local markets and have chosen where and how I would like to invest.

I am reaching out to find private money lenders and equity partners to fund my deals. I would like to know I have sources to fund, before I put anything else under contract.

I am looking to buy/hold 3-4 family unit properties. All deals will easily cash flow. 60-70% of cash invested will be returned within 4 months after cash out refi. All deals will be located within Fairfield County, CT.

Thanks for your time,
Enzennio

Edited: 06/26/2010 at 10:13AM

Uwe S.

Real Estate Investor · Chemnitz, Saxonia

1146 posts
12186 Influence
12 Awards

Icon_minipost Oct 24 '09, 04:54 AM

Enzennio,

IÂ´m not from the US but a cash out refi after 4 months is this not to short? I know only after 12 months a bank is willing to refi.

-Uwe

Edited: 06/26/2010 at 10:13AM

Enzennio Mallozzi

Real Estate Investor · stamford, Connecticut

27 posts
107 Influence
2 Awards

Icon_minipost Oct 24 '09, 01:38 PM

These will be cash flowing assets that I am essentialy buying cash. The bank will base the loan on NOI and appraised value. The bank will lend 65% LTV at lets say 7%

some banks require seasoning, but it seems local banks are on board.

Edited: 06/26/2010 at 10:14AM

Steve L.

SFR Investor · Rancho Cucamonga, California

828 posts
6968 Influence
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Icon_minipost Oct 24 '09, 01:45 PM

some banks require seasoning, but it seems local banks are on board.

I have been making calls lately and it doesn't seem like any of the banks I have been calling are "on board."

Edited: 06/26/2010 at 10:14AM

Jon Holdman

Real Estate Investor · Denver, Colorado

11859 posts
75547 Influence
15 Awards

Icon_minipost Oct 24 '09, 01:47 PM

On board for cash out? Based on a new appraisal? Those are some extremely liberal terms. Its my understanding that all FDIC insured banks are required to wait at least one year before using a new appraisal.

You may have better luck if you structure this as a loan. Then the refi is a rate and term refi rather than cash out. Hard money lenders are usually cheaper than equity partners, too.

Edited: 06/26/2010 at 10:14AM

Jon Holdman, Flying Phoenix LLC

Enzennio Mallozzi

Real Estate Investor · stamford, Connecticut

27 posts
107 Influence
2 Awards

Icon_minipost Oct 25 '09, 10:59 AM

Jon, you are spot on. I used the term "cash out" to describe what was actually taking place. I have a private lender who lends me the cash needed to buy the property and do the rehab. After which, I will refi with a local bank for a better rate and term.

Typicaly when I purchase properties, I structure the deals with 2 sources of capital. 15-20% of the Capital is from an equity partner, and the ramaining capital, is debt from private lenders. In my multi family project, I plan to refi to return 60-70% of the capital invested by the equity partner, as well as replace the private debt.

I also agree that using equity partners is very expensive. Do you have any suggestions on how a newbie finds debt for 100% of cost? I really appreciate all the feed back thus far.

thanks

Edited: 06/26/2010 at 10:14AM