What would you do to get to the next level
All,
Little bit of a rant, sharing of experience, and seeking advice. I left corporate America last year in Feb. was tried of the 9-5 grind. Jumped into RE full steam ahead. Worked for a guy for free learned some things after 4 months I bought my first "resort" property. Actually that's my own inside term I use jokingly. I have a partner that brings "credit" "stable income" and balance in terms of strength and weaknesses to the table. We used liquid cash, Heloc, and raised ...private capital to get the engine rolling. We only buy and hold right now in South Chicago in tougher neighborhoods and we have created success in a short period of time, 7 buildings, 16 units, 9 months, all free and clear with returns averaging over 30% NET. We acquire through demolition court, wholesalers, alderman referrals, and other city programs. We are really gaining traction, here comes the issue. Our exit strategy was to refi out with local banks we had 4 lined up but all now are saying " great work but "too green" "not seasoned enough" " come back later" "you suck" blah blah blah. The goal was to refi / cash out / build up into the MF 6-10 units range and continue. Because of the pocket we are working it is difficult to find JVP. We have access to hard money at 15% which we are actually considering using because the returns are so solid, and we can continue to build. Using the same exit in 12 months with the cashout refi - but now we are skittish because if we hear the same story in 12 months from banks or credit unions we are stuck with a high double digit loan. Other option is to package up about 35-50 units and start over in different location slaughtering the golden goose laying the cash flow eggs. As I write this is am sitting in my office in South Chicago with my door open it's not as bad as the media paints it but I will be shutting the door in a few hours and locking up. What would other members do in our shoes?????