Skip to content
Investor Mindset

User Stats

3
Posts
0
Votes
Justin Berenson
0
Votes |
3
Posts

Creative financing with a turn key property

Justin Berenson
Posted Jan 2 2024, 18:48

I’m newer to realestate. I own a LTR in Alabama that cash flows $300 a month. Bought in 2021. I don’t have the same money as I did for my first investment but looking to get into a turn key home in a decent area. I’ve looked in Indianapolis and there are many turn key looking homes at about $150k. I’m also looking to learn more about creative financing. My goal is to own 5 doors in 5 years and retire with rentals. 

User Stats

674
Posts
844
Votes
Jeremy H.
  • Rental Property Investor
  • Lafayette, LA
844
Votes |
674
Posts
Jeremy H.
  • Rental Property Investor
  • Lafayette, LA
Replied Jan 2 2024, 19:56

What's the question? 

How to fund the downpayment? If you don't have the money it's pretty much going to be a loan of some sort if your buying from a turn-key company - 401k loan, personal, conventional w/ hard money, private money etc 

I'm not sure a turn-key company would be involved in sub-to or seller finance. But those are options. Seller finance may be the most viable and makes the most sense to me personally. 

Just keep in mind this gets you even more leveraged. I cannot stress how important it is to have liquid capital on hand - this is how you prevent a trainwreck  

Also keep in mind 5 doors @ $300/door is $1500 a month (assuming this is profit, after expenses including capEx is budgeted for) - this is hardly enough to retire on, in my opinion. I'm going to need about 3-4 times that much at the minimum 

Really the best way to maintain the velocity of your money is doing a BRRRR or seller finance (while still cashflowing) - you have to get the majority of your money back out of the deal or avoid putting it in, in the first place. The "how" to do that is up to you

User Stats

1,455
Posts
780
Votes
Ken M.
Pro Member
#1 Goals, Business Plans & Entities Contributor
  • Investor
  • Nationally
780
Votes |
1,455
Posts
Ken M.
Pro Member
#1 Goals, Business Plans & Entities Contributor
  • Investor
  • Nationally
Replied Jan 2 2024, 23:57
Quote from @Justin Berenson:

I’m newer to realestate. I own a LTR in Alabama that cash flows $300 a month. Bought in 2021. I don’t have the same money as I did for my first investment but looking to get into a turn key home in a decent area. I’ve looked in Indianapolis and there are many turn key looking homes at about $150k. I’m also looking to learn more about creative financing. My goal is to own 5 doors in 5 years and retire with rentals. 

Creative financing is what I've done for 30 years. Yep, before it was fashionable. But, it was being done long before I got started. So, I've learned a lot along the way and I see some "gurus" teaching and leaving out the parts you really need to know so you don't wind up regretting things in the future. Feel free to pick my brain, just DM me, I love talking creative finance.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

3
Posts
0
Votes
Justin Berenson
0
Votes |
3
Posts
Justin Berenson
Replied Jan 3 2024, 13:07

I would like to chat about creative financing. I’m 6.5 years from retiring from education. I want to begin a second career and I’m really into real estate. I enjoyed buying my first LTR and am trying to learn all I can. 

User Stats

1,455
Posts
780
Votes
Ken M.
Pro Member
#1 Goals, Business Plans & Entities Contributor
  • Investor
  • Nationally
780
Votes |
1,455
Posts
Ken M.
Pro Member
#1 Goals, Business Plans & Entities Contributor
  • Investor
  • Nationally
Replied Jan 3 2024, 13:26
Quote from @Justin Berenson:

I would like to chat about creative financing. I’m 6.5 years from retiring from education. I want to begin a second career and I’m really into real estate. I enjoyed buying my first LTR and am trying to learn all I can. 

@Justin Berenson: I sent you a DM. Check the little bell in the upper right hand part of your screen.