Use capital as downpayment instead of be a cashbuyer
Engineer · Monmouth Beach, NJ · Member since 2016 · 132 posts · 25 votes
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...
To make it simpler, the first equity partner is a family-member, so lets just say I am acting on my own with 375k. Also, I used to project manage on commercial and heavy-industrial sites. What would you do in my situation? Search for a partner who could match my equity? or spring for a hard-money lender if I have the systems in place and a project timeline with deadline for filling vacancies.
If he's on the loan the two you may be able to qualify. Depending on other factors.
But if this is your first one a job would be nice as you can project manage and have a regular job. Income is good in my opinion.
I left my job too early, but I am where I am, and returning now would throw everything off.
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...
To make it simpler, the first equity partner is a family-member, so lets just say I am acting on my own with 375k. Also, I used to project manage on commercial and heavy-industrial sites. What would you do in my situation? Search for a partner who could match my equity? or spring for a hard-money lender if I have the systems in place and a project timeline with deadline for filling vacancies.
As always, it depends on the "deal"! My concern is that you seem fixated on "a 6-10 unit building", perhaps because you think that is where your sweet spot lies. But, is it?
In late 2017, I'm just not sure that such a "deal" is waiting for you, and you alone. The distressed/motivated Sellers out there right now are probably sellers of everything except 6-10 unit buildings! Get what I mean? Time to expand your horizons? Cheers...
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...
To make it simpler, the first equity partner is a family-member, so lets just say I am acting on my own with 375k. Also, I used to project manage on commercial and heavy-industrial sites. What would you do in my situation? Search for a partner who could match my equity? or spring for a hard-money lender if I have the systems in place and a project timeline with deadline for filling vacancies.
As always, it depends on the "deal"! My concern is that you seem fixated on "a 6-10 unit building", perhaps because you think that is where your sweet spot lies. But, is it?
In late 2017, I'm just not sure that such a "deal" is waiting for you, and you alone. The distressed/motivated Sellers out there right now are probably sellers of everything except 6-10 unit buildings! Get what I mean? Time to expand your horizons? Cheers...
I suppose the fixation is me trying to have set criteria. I assume multifamily investing revolves around the deal more than your criteria because each deal is so different and scarce?
I have a combination of 2 HELOCs and cash totaling $375 (75k cash, 100k Heloc 1 200k Heloc 2). Instead of purchasing a duplex rental and do single family flips, I have considered looking for a 6-10 unit building and using my capital as down payment.
The two HELOCs are in my partner's name. The cash is mine.
I am not working right now as I am trying to put together a deal and plan to PM renovations. Though it is the last thing I want to do, I have considered returning to a W2 job just for the sake of being able to pass approval for a loan.
Besides Hard-money Lending, what are my other options for financing? Lets assume I would be spending 700k-1.3 Mil on the 10 unit.
Looks like a plan. But unless you are the one finding the deal (and it had better be a real "deal"), your input is less than 25% to begin with, and from what I can see, only worth a Project Manager's salary thereafter [Have you even done that before?] So as of now, it probably should be your partner calling all the shots. You see that, right? All the best...
To make it simpler, the first equity partner is a family-member, so lets just say I am acting on my own with 375k. Also, I used to project manage on commercial and heavy-industrial sites. What would you do in my situation? Search for a partner who could match my equity? or spring for a hard-money lender if I have the systems in place and a project timeline with deadline for filling vacancies.
As always, it depends on the "deal"! My concern is that you seem fixated on "a 6-10 unit building", perhaps because you think that is where your sweet spot lies. But, is it?
In late 2017, I'm just not sure that such a "deal" is waiting for you, and you alone. The distressed/motivated Sellers out there right now are probably sellers of everything except 6-10 unit buildings! Get what I mean? Time to expand your horizons? Cheers...
I suppose the fixation is me trying to have set criteria. I assume multifamily investing revolves around the deal more than your criteria because each deal is so different and scarce?
Yes, "multifamily investing (should) revolve around the deal more than your (stated) criteria"!