Seeking $2.3M financing to buy 67 properties

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Seeking $2.3M financing to buy 67 properties

Investor · San Diego, CA · Member since 2016 · 37 posts · 13 votes

Excellent passive income opportunity! I'm seeking an individual or private lender to finance $2.3 million for a portfolio of 67 properties with:

$1.9 million purchase price

$400k estimated repairs

$3.3 million After Repair Value

$50k per month rent estimates

$350k per year cash flow

These will be held long term as rentals.

I'm experienced, have good credit, a property management team and contractors ready. Contact me for more details.

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

10y

Jason I would say this Is next to impossible scenario frankly.. your in San Diego your buying properties in the mid west deep south or rust belt by the price points.

so your job is to manage managers.. folks with this wherewhithal are just going to do it themselves again speaking from experience..

to get the deal done though you might want to go down this track.

find some local investors to you.. raise 500 to 700k in equity then find a first position lender.. you be the sponsor or manager of your team.. you bring value at that point.

However if you have no real practical experience in those asset class's you would be a HUGE RISK.

these are not assets that are easy to manage from afar in that number ..

Best of luck.

JLH

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
is this 100% LTC ? or do you have your own cash in the deal or do you propose to put any of your own cash in the deal?
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Jason Lombard
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Investor · San Diego, CA · Member since 2016 · 37 posts · 13 votes
10y
I don't think it's unreasonable to borrow 70% of ARV, the lender would be in a great position. I'm willing to cover the 2% closing costs and I will have my skin in the game providing onsite management of repairs, open houses, and tenant screenings. I might consider negotiating some equity share or profit sharing. what do you think?
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
Jason I would say this Is next to impossible scenario frankly.. your in San Diego your buying properties in the mid west deep south or rust belt by the price points.
so your job is to manage managers.. folks with this wherewhithal are just going to do it themselves again speaking from experience..
to get the deal done though you might want to go down this track.
find some local investors to you.. raise 500 to 700k in equity then find a first position lender.. you be the sponsor or manager of your team.. you bring value at that point.
However if you have no real practical experience in those asset class's you would be a HUGE RISK.
these are not assets that are easy to manage from afar in that number ..
Best of luck.
JLH
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Jason Lombard
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Investor · San Diego, CA · Member since 2016 · 37 posts · 13 votes
10y
I own properties in this market already, I have a management team in place there as well, and I travel to manage projects onsite. Im very mobile for work. Thanks for you input, I like your idea about leading a local equity group.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
sounds good then you know the challenges.. and you must understand that there are no unicorn 100% LTC loans out there... especially at a high number like 70% ARV.
approach it like any other multi family deal you need 25 to 30% cash down then go to someone like B2R or colony and you have something that has a remote chance.
Management teams are a critical component however easily found and or replaced in these areas.
what market are you speaking of ?
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Jason Lombard
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Investor · San Diego, CA · Member since 2016 · 37 posts · 13 votes
10y
Saint Louis, MO. The section 8 program there has been really easy, I've had decent vacancy rates, and I can provide tons of data that market is a value right now. Again, I like your idea about forming an equity group in CA and applying the funds to other markets like STL.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
Jason,,, I humbly submit that is how you put this deal together.. I am simply trying to help you not poor cold water on it...
I have been in this space for over 2 decades.. I know and understand the asset class and what lenders will go on and they wont simple fact is without significant cash into the deal you will not find a long term lender at close to bank rates..
you could find an equity partner that puts up the money and takes 80% of the cash flow and gives you a management fee that's more likely.
So if you know some buddies put a little syndicate together for your equity and then go to the folks I mentioned and see if you can land this puppy
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Reginald TrussPro Member
Lender · Toledo, OH · Member since 2015 · 1k+ posts · 96 votes
10y
Jason, I would appreciate it if you contact me [email protected], we may be able to help you with this.
Reggie Truss
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