My name is Simon, I'm 24 and I'm a french man living in the beautiful city of Philadelphia. I moved here almost 3 years ago as I fell in love with the city when visiting for the first time. I am a student at Drexel for a second bachelor degree in physics. After walking around the city with a friend I met here, I realise how big the potential the real estate market in Philadelphia was. I actually did not know a lot about real estate, but I had the money for. I started by buying my own house. And then I bought the house next door that was in need of a full refit. I then set up a LLC. I have today, after 1.5 years of being in the market by myself, 6 properties. Of course, I rent them out and do not flip. It is a question of taxation: in France, taxes are very high for high incomes (almost 70%, yes I said 70%...). Therefore, to avoid the double taxation in France and in the US, I do not want any income from the business: I buy cheap, I renovate a maximum (as it is deductible) and I want all rents to go back into the business by investing again and again. No income at all! I want to create assets only (for now). Today, I use a building company and a property manager to help me. In the future, I would like to own my personal building team and have my own broker.
But for now, I'm trying to expand the business exponentially: and this is where I need help and advices. I want to stop taking money out of my own bank account and put it into the business (that's not the most efficient way to do it). I would like banks to work with me: I would like a "full" financing for all the coming projects. Do I have enough properties so far as garanties for the bank? Will I get 100% financing, yes, no? why or why not? How low the interest can be? What bank or institution? I have none of the properties that make under 15% of investment back (some goes up to 22%): so why the bank would be worry? I'm in a Win-Win philosophy! I win so partners win! Why not the bank?
All these questions I don't know how to answer myself. I need help and advices to move forward and increase my business activity, my partners wealth and of course my passion for getting into big challenges.
I'm new in this forum and I heard a lot about it! I'm ready to work with you, get your advices and give you all the advices I could have earn these past years.
Thanks to all.
Hi @Simon Battistella,
Welcome to BP. Let's connect, very active in the Philadelphia Real Estate Market and always looking to connect with like minded investors.
@Simon Battistella , Bonjour! I'm 24 as well slowly building up my portfolio. I was also born in France so it is nice to see a fellow France native on Biggerpockets. I currently have 5 properties in Philadelphia. Where are you buying, University City by Drexel?
When you say you want "full" financing...what do you mean? 100% financing? In some instances, you may be able to obtain 100% financing from hard money lenders IF your purchase and rehab costs are 65% of the ARV (after repair value)...keep in mind that hard money loans are short term loans with high interest rates and origination points. Since your goal is to buy and hold you would have to refinance into a longer term loan once the rehab is complete and the property is stabilized with renters.
If by "full" financing you meant was not personally guarantee your loans- in most cases you will not be able to do this anymore. I have seen some lenders do this, but this comes at much higher rates and terms that it is generally not really worth it.
I think that 6 properties is a good start, each bank will look at your portfolio on a case by case basis including your personal financial situation. I.e. if you have any other debts, cash in the bank, etc
Feel free to DM me with any questions
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Welcome to BP Simon,
I am a Drexel Alum, sounds like you have put together a nice sized portfolio already. I think your goal should be to find a local lender and discuss the options available to you given the properties you already own. You might be able to leverage them to secure financing for other investments.
Best of luck!
I come from Brazil and also felt in love with Philly!
I completely agree with the post above ...find local lenders, build a relationship with the commercial side and discuss what products they have to offer. It takes time..but is worth to invest your time.
When you say "I would like a "full" financing for all the coming projects"... do you mean 100% finance? My experience has showed that all lenders want us to have skin in the game (which is understandable) and would lend 65% to 75% ARV on purchase and 100% rehab cost. But if you find someone that will lend 100% the entire project..just let me know.
Best of luck.
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