New Investor - Seller Financing, Private Equity, and Hard Money!

[Troy Little]

Hello everyone,

My name is Troy Little and I am a new realtor and investor in Buffalo, NY. I bought my first house hack (Closed March 16, 2025) with a 4 unit in North Tonawanda using a FHA and full seller concessions with the three tenants covering my mortgage. I am getting ready to buy my second property. I will then claim the income (minimal write offs) this year to increase my income to atleast cover the increased debts and purchase another two properties in 2026 (will be reassessing at the end of the year to make sure it still makes the most sense)

I am now interested in learning more about seller financing, private equity, and hard money loans so I can scale at a faster rate. I will be growing down the east coast and am open to investing anywhere in the U.S. for the right properties.

Can someone help me further understand the intricacies of these processes so I may make sure I have not overlooked anything? 

Is there anyone who would be willing to mentor me and/or fund future deals for the right equity split or rates?

Thank you everyone in advance!

[Matthew Irish-Jones]

@Troy Little congrats on getting your first property, 4 units with an FHA can be a great way to get started. As long as your accurately predicted future CapEx.

I understand what you are asking for but I have some jaded advice.  RE is as tough as it gets as an industry.  The competition has access to data and Capital that you can't believe.

The systems you need to build to actually leverage private money, get multiple houses with little Capital and grow down the east coast are overwhelming.  Not to say it cannot be done, I have witnessed a person do it, besides the growing down the east coast part.

You also have to understand you are in a position where you don't know what you don't know.  That comes from the school of hard knocks. 

A better strategy is to really focus on your 4 units, put in as much sweat equity as possible.  Build up a reliable vendor pool and be strategic with realistic goals.  
If you can significantly improve the property you can get rents up and increase your CoC return, now you have proven you can properly manage one 4 units... which is a legitimate accomplishment.

If you are doing a great job managing you will have enough funds for your next property in 3-7 years, depending.  For your next property you will most likely need 25% down. So the Capital needs are only going to get harder from here.

Once you have successfully built a small portfolio of cash flowing rentals, have a reliable sub pool and can manage small turnovers, you may be ready to take on a HML and try a highly leveraged project.

 It's important to have massive future goals, I comend you for that.  It's also important to be pragmatic about what is achievable in the short term.  

Had I slowed down a little in the beginning and focused on buying great properties and keeping them in great shape I would be further along now.  I paid the school of hard knocks a hefty tuition

Good luck!