Starting a Company and Financing the Deal

Starting a Company and Financing the Deal

Investor · Korea · Member since 2019 · 27 posts · 3 votes

Hello BP, 

I have been a little sporadic in participating with BP. I am down to the wire, for starting my business. The set in stone date is in 117 days and there is no going back. So I have to start taking decisive action. 

My current plans include getting my associate broker license, starting training next Monday. Using Investor Carrot for lead generation. and managing my own properties. but this is as far as I have got. 

I would like to start working for Marcus & Millichap Raleigh office (if anyone has a contact I would really appreciate it)

My assets include about 200k (cash, equity, and investments combined) an excellent credit score, and a few investors that have not given a specific amount (one investor owns a trucking company and wants to diversify). But my plan is to ensure I can cover with my assets for the acquisition then use what investor capital I can get (to make sure if an investor backs out I can still proceed with the deal). 

My questions to BP are what are the action steps to take now (I will not be trying to make a purchase before the 117 days)? 

What kind of lenders should I talk to and get pre-approved with? 

Are there some due diligence checklists I could get? 

What team members are essential for the first few deals,(I have seen lists of 20 or more) 

What other questions am I missing? 

I look forward to hearing from all of you

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  • Investor · Baltimore, MD · Member since 2019 · 168 posts · 47 votes
    5y

    David Greene likes to say the Core Four are deal finder (often an agent); general contractor; property manager; lender. 

  • Investor · Raleigh, NC · Member since 2014 · 104 posts · 112 votes
    5y

    Woof, there are a lot of variables in what you said.  I am going to make an assumption and say you are going to be buying Commercial properties (residential 5 and above units, commercial space, and industrial space).  Most lenders in the commercial space don't really look at you as much as the property and the income it produce. So your good credit score is helpful but not as important as it would be in a smaller loan.  Think of it as buying a business, the property needs to have a certain debt coverage ratio. As far as pre approval in the commercial space is more of a relationship.  Most lenders want to see experience in real estate or business, and networth around what the loan is for.  These are loose guidelines but things I have seen frequently.  I would talk to commercial lenders in the Raleigh/Cary/Triangle area or the area you are looking.  Bring your business plan and ask what would be next steps once you find a property. There really isn't a commercial loan pre approval because it is so property based from my experience.  

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