SHORT VERSION: Looking for a private lender to partner with on acquisition of 10-15 properties per year at $5k - $15k profit per property for the lender. I am an experienced investor and am willing to work with our partners to make them feel secure in their lending.
About Me: I am an experienced investor operating in the Syracuse, NY area. I have completed numerous flips for myself, my friends, and customers as I own a construction company. I have been in business since 2007 and have worked on and managed thousands of properties all over NY State for Hedge Funds & Lenders, my clients have included HUD, Fannie Mae, Bank of America, PHH Mortgage, Dovenmuehle, and many others.
Experience: I own 9 properties in the Syracuse, NY area though more have passed through my hands. Previously, my goal for investing was to flip properties. We have experience in executing Sub-2, Short Sales, Flips, BRRRR, and of course my construction company is one of the highest rated companies in Central NY.
Money: We have worked with many other investors and have provided different methods for lending, we have had the lender purchase the property and provide us with a lease with option to buy, we've allowed liens to be placed, mortgages recorded, etc. Whatever makes our lenders comfortable and enables us to operate efficiently.
We are offering $5-$15k per loan with a typical loan length of 1-3 months. Our acquisitions will be the sole priority of our construction company, being our own company will be remodeling these properties; we will have smaller remodels, no hidden fees or change orders, more consistent timing & turn arounds, and priority scheduling. The $5-$15k will depend on how much "Equity Margin" we have in the deal which is dictated by the purchase price and the rehab cost.
Exit Strategy: We will be exiting our loan with our partners within 1-3 months, the sooner the better and we hope to be able to continuously working together. We will be refinancing the properties. We have 4 great lenders who will be providing the cash out refinances.
Moving Forward: Feel free to reach out to me with any questions, I am an incredibly ruthless individual, I work hard to find absolutely fantastic deals, I am working with an equally ruthless broker who is also on BP. Thanks!
Email: [email protected]
Hey guys, I wanted to give you a little example on the investing method that we're utilizing to expand our portfolio. We have dropped $300k on investments this year and bringing in a partner will help us expand at the rate we feel we can attain while still remaining in control.
The Method: We are using the buy rehab, rent, refinance, repeat method. You can learn a ton about the BRRRR method from those more intelligent and well spoken than I but here is a basic rundown of the BRRRR.
We find a property listed for $30,000 that needs $15,000 in repairs and we estimate all closing costs to be $5,000. This gives us a total investment of $50,000. So we take our $50,000 and complete the remodel on the property and now the property is worth $100,000.
First we place a tenant and let's say the property is now renting for $1,200 a month. We run to the bank and we ask them to refinance the property, they offer us a 75% LTV which means they will put a loan on the property for up to 75% of the properties new value, the bank sends an appraiser out and he confirms the property is worth $100k.
Excellent, since the bank gives us 75% of the value, we get $75,000 in our pocket, we have a new $75,000 loan. Let's say our monthly expenses are $700 a month and we're renting the property for $1,200; we pocket $500 a month, we have $25k extra cash, plus the $50k we invested we have right back.
If you were to be our partner, you would provide us with the initial $50k and when we refinance you would collect your lender fee of $5-$15k. If you could only fund one deal at a time and everything went perfect and we did 4 deals in a year, at the low end of $5k per deal you'd be earning a 39% return on a $50k investment. Every deal will be different, we expect delays, we try to be as efficient as possible but we're also realistic.
The next question would be, do we have the ability to earn that much equity on each acquisition & remodel? Since I am a general contractor and not just a one man show, my company can complete remodels much quicker and at cost as I've stated before so we have much larger margins to work with, this also means we can buy "worse" properties or properties that need more work that would shrink margins for others.
Now what happens if even after we ran all of our numbers we get stuck with $2,000 in the deal because the appraisal came back too low. To us, it's not optimal but who cares. We still pay our partner, your loan fee is contracted in from the start. If we have $7,000 in a property where we're NETTING $500 a month, we're talking about a 100% annual return on that $7,000 and any return over 20% I'm more than happy with.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing