Wholesaler · Nashville, TN · Member since 2013 · 2 posts · 0 votes
I have a doctor friend who has purchased rental properties in the past. He is the typical traditional investor, very ole' school. Very bankable and has down payment to purchase properties.
How would I ask him to provide financing on a BRRR properties? or How would I explain him being a lender for this deal? How can I show him what his ROI would be?
Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
10y
@Rolanda Amos talking to him shouldn't be hard. If he has properties, ask him about if they needed rehab, did he manage the work, etc. Let him know you are wanting to buy distressed, fix them up, and then refinance traditionally. You will need to understand sample properties that this works on, how much they can be bought for, fix up cost, refinance costs, etc. All of the numbers. Use that to understand what income those properties create, then you can figure out what you are willing to part with. Would he want equity? To be a normal lender? These are the things you can identify while chatting about RE.
In short, you figure out the numbers based on the market and what you can do. Then talk to him about your plans. Private lending is relationship based, so don't go in treating him like a bank, unless you know he does that :)
Wholesaler · Nashville, TN · Member since 2013 · 2 posts · 0 votes
10y
@Bryan O. thanks for the input. Presenting my plans would be much better than trying to explain the whole non-traditional investing process.
Good thing that came from our meeting is that he and a few other doctors are looking to buy about 10-20 homes to use as group homes. So hopefully I can incorporate their goals with my own goals to build my rental portfolio.