Wholesaler · Nashville, TN · Member since 2015 · 11 posts · 1 vote
Hello, I'm Ray Hackney. I'm a Real estate investor in East Nashville Tennessee. This year I've done several assignment of contracts. Two double closes, two fix and flips while acquiring 3 duplexes and 3 single family for rentals. I only have a mortgage on one duplex and one single family.
I would be interested in learning more about ways of freeing up the money without the conventional loans. I assign many of deals, because of the money being tied up.
I'm a full time real estate investor always looking for ways to structure a deal.
Investor · Nashville, TN · Member since 2015 · 688 posts · 607 votes
10y
@Ray Hackney I am also over in east nashville with my investing. One way to "free" up money so to speak is start getting owners to hold the note for you whether it be a flip or a rental. It's very advantageous for a flip because they will see their money in 6 months with some interest on top.
Lender · Boca Raton, FL · Member since 2015 · 84 posts · 41 votes
10y
Hi Ray, establishing a credit line with a bank or private real estate lending firm is an excellent way to leverage your existing capital. Please contact me privately if you'd like further details.
Wholesaler · Nashville, TN · Member since 2015 · 11 posts · 1 vote
10y
Devan. For the owner to hold the note are a subject to. You could receive a positive cash flow until flipped and should have some equity on the back side. But, it won't leverage my existing capital I have invested in my free and clear properties at this time. I have two duplexes and two single family I'm looking to free up some capital on. So I can continue being a cash buyer. I find I get better deals with more equity that way. However, I'm having to assign more contracts than I would like. But hey as long as we're making deals that's all that matters.
Jeff, I looked up your contact information and will be contacting you! Thanks
JT, 1k month passive income is a very realistic number in this line of work. You could generate that number in a few hours a day, one day a week just by assigning contracts. I can't help but wonder how the email address works with the real estate. It seems to me it would turn away my buyers and sellers. The buy, fix and flips or nice to build capital for the buy and hold. That burger and beverage sounds like a good ideal. I'm always looking to meet like minded people.
Luka, when i set my mind to being a full time real estate investor, I put a 5 year goal on it. It started with that first deal! Within the first year it made no sense for me to work anywhere else. I quickly learned it also made no sense for me to try to managing my property. By freeing that time up it gives me the ability to structure more deals, are more time to spend with my sons are other family and friends. As a single father with there mother having very little involvement, that time is why I do what I do. And, the numbers are higher than in any business I've owned. Like a car lot, recovery agency and cleaning business. If you structure the right deals it will be easy to generate the income and free up the time. It is a win win for everyone. The Gratitude and sign of relief Russ had when I signed a contract to buy his house for 110k was much more pleasant to deal with then the recovery field.lol Russ didn't mind when i told him i might assign the contact. He needed out of the house. The buyer's was happy to by the contract for 132,500. The ARP is easy 270k with a 35k rehab. Good for them. It was a win win for everyone.
Another example would be, I paid Anthony 500 bucks for a lead on a single family in east Nashville. He shook my hand and looked at me and said you have no idea how much this is going to help. Just tell people that you're an investor. It doesn't matter that you don't invest your cash. If you do a assignment of contract it doesn't need your cash. I've learned if you get the deal's the buyers will find you! So, we had a motivated seller and I acquired the property for 70k cash. After the 8k rehab the comps are 130. 50k equity is nice, but by renting it for 1200 a month I don't know where else to get that kind of return on the investment. Also, over the next 3 years I'm certain the numbers will climb dramatically in that pocket and likely comp around 160k. That was a win win for all because Anthony and his family enjoying living in the home.
Jim, just so happens my goal is 100 rentals by 2017 as well. Wholesaling is a very lucrative business. I save as much as possible to acquire rentals. They have from 30 to 50K equity. The positive cash flow is comfortable, but the equity is peace of mind. Keep push on and let me know things progress. I still wholesale. Maybe we can structure some dealers.
Investor, Realtor & GC · Nashville, TN · Member since 2013 · 25 posts · 1 vote
10y
@Ray Hackney you can use your free & clear properties to obtain a commercial line of credit vs going the traditional mortgage route. Expect to pay a few points in origination and you will have a closing as well. Then you can access your cash as needed. A local "small town" bank or credit union is a good place to start.
I would be interested in seeing any deals you have under contract now. We are cash buyers and need to close on a few more before year end. Please email me, my contact info is on my profile. Thanks!
Investor · Nashville, TN · Member since 2015 · 688 posts · 607 votes
10y
@Ray Hackney you are correct, however, if they hold the note or you buy it subject 2, you can buy properties without your cash and create more cash flow or get into more rehabs with very little money. Being a cash buyer is great, and you can find private money anywhere as long as it's a good deal, but this gives you another avenue of buying properties. It actually does free up your capital if you take the cash flow from that owner financed property to pay down your other notes or you flip it, make 40k and pay down your notes to free up your equity.
Rental Property Investor · Nashville, TN · Member since 2015 · 43 posts · 4 votes
10y
Hey guys, if you do a lunch meetup, please count me in. I'm a new real estate investor living in Nashville. I have a lot of free time outside of work at the moment and a lot of tenacity and dedication toward my goal of $3K monthly through real estate by the end of 2016. I'd like to know more about wholesaling and assigning notes as you all discussed, and would be more than willing to offer any assistance in your deals where needed!
Real Estate Investor · Houston, TX · Member since 2015 · 269 posts · 31 votes
10y
Carrying back a note is a great way to get good cash flow off a property. I buy notes from investors who want to free cash from note they have been collecting for a couple of years because maybe they want to do another deal. It wouldn't be a bad idea to have some have Note Investors in your back pocket who be willing to buy notes from you when you are easy to sell.
BP is full of useful resources such as forums and blogs. Welcome to the Bigger Pockets community-be sure to check out all the awesome BP blogs under “Learn.”
@Ray Hackney you are correct, however, if they hold the note or you buy it subject 2, you can buy properties without your cash and create more cash flow or get into more rehabs with very little money. Being a cash buyer is great, and you can find private money anywhere as long as it's a good deal, but this gives you another avenue of buying properties. It actually does free up your capital if you take the cash flow from that owner financed property to pay down your other notes or you flip it, make 40k and pay down your notes to free up your equity.
That is a great point. I went into real estate focusing on assignments and subjective 2. I haven't had any success yet at the subject 2. But, I've done really well with the assignment of contract. Thanks for that advice. I will put more focus on structuring deals that way.