31 units in 30 months at age 24, $70k Annual Cashflow

115 Replies

Originally posted by @John Moon :

@Joel Florek thanks for the answer. Just to clarify. 

The owner is giving you a 20 year note at 5%. However, there is a balloon payment at 18 months in, where the current owner expects to get paid off. Your goal is to secure this payment at the 18th month mark, by either selling the note to an private investor who's interested in a guaranteed 5% or you're going to refinance and pay the note off completely. 

Is that right? 

Yes, but the 3rd option is I pay the remaining seller note principle in cash via my own savings/lines of credit. 

So there are options available, but my goal is to avoid having to put more cash into the deal if possible. 

@Joel Florek Your story and plan is very inspiring and insightful.  Greatly appreciate that you included the numbers... as a new/learning investor seeing the numbers can really help explain and educate when learning to analyze properties. 

Thank you,

Nate G.

@Joel Florek Thank you for sharing your story. It serves as a source of motivation for a newbie investor like myself. I am currently trying to close my first deal and I hope that I can springboard from my first deal when I complete it to get to the level that you are at. Hopefully, I can close on my first deal before the end of 2017.

@Nate Gilbert Thank you, I found that the most helpful posts when I was first learning were the ones that included details on the numbers so I am try to return the favor to the community. 

I absolutely love how aggressive you are. Also, thanks for including all the numbers for the deal in your post! It makes it much easier to understand with everything laid out like that.

Great story! Congrats on all the success! It’s very motivating to hear how you did it! Look forward to hearing more success stories!

Hey Joel I appreciate the information and knowledge. I had a question regarding HML and how you were able to leverage them into financing this deal. If I am wrong in who actually financed your deal then my question is how do you pay a HML back if you intend to hold the porperty. Thanks for your time and feedback. Greg

Originally posted by @Gregory Mcgraw :

Hey Joel I appreciate the information and knowledge. I had a question regarding HML and how you were able to leverage them into financing this deal. If I am wrong in who actually financed your deal then my question is how do you pay a HML back if you intend to hold the porperty. Thanks for your time and feedback. Greg

 If you are referring to hare money that is not what I used. 80% was financed through the bank and 10% debt held by the seller. 

Ok I wasnt sure if you did. Have you used HML in the past for one of your deals? I am currently looking at a 12 unit presently and thinking about using a HML.

Its great to see such creative ways to get financing and use other peoples money. Thanks for the post I learned alot.

Originally posted by @Gregory Mcgraw :

Ok I wasnt sure if you did. Have you used HML in the past for one of your deals? I am currently looking at a 12 unit presently and thinking about using a HML.

 I have not used hard money on any of my deals yet. 

@joel, FHA will finance non owner occ?? if so what bank?

Hey Joel when you refer to the 10% debt held by the seller that is the money that was financed to you by them correct?

Thanks for the info I would definitely like to gain some knowledge.  I am not familiar with Commercial Banks and how they work.

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