How to finance My next deal?

Question

Hi everyone, i am relatively new to real estate investing but i have a two units under construction in Accra, Ghana with an ARV of $60,000. Estimated monthly rent is $400. The project is funded by friends and family. I have been trying to find a strategy that will allow me to increase my MFH portfolio as well as payback the initial loan as soon as possible. I tried the BRRRR strategy but my DTI currently is above 50%. I would appreciate your suggestions.

Regards,

Elvis.

Regards,

Elvis.

Elvis Acheampong · Answer

Thanks very much for the reply, Michael.

Elvis Acheampong · Answer

@Anthoney Hanks thanks very much 😊. Can you please recommend any strategy or steps I can use? Regards

Anthoney Hanks · Answer

@Elvis Acheampong Welcome to BiggerPockets! Truly nice to meet you. Good luck going forward! 😁 You seem to be off to great start!!

Michael Lewis Lee · Answer

Hello Elvis!  I do not have much actual experience but I had a broker license for about 30 years and also during that same amount oof times I worked and managed much of construction work.  I can say that you might be able to have success with a Private or hard money lenders.

Those lenders are typically short term (6 to 12 months) and you may have to refinance after their time period but,hopefully, by then you have increased that value so it’s very important to get an add-value and made it more property more valuable and will satisfy the long term lenders.

You could also get a “cash rich” partner but you might have to give 25 to 50% of the profit to them.  I am concerned of long distance investment and a responsible and trustworthy local person too help you.

Another possibility is owner financing which usually is more flexible that can help you more hand that you could help the owner get closer to their asking price and the interest you could afford to pay.  Show them what it could make the seller on paper.

That’s about all I can think of.

Good luck to you!