I maybe buying too many homes

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I maybe buying too many homes

Drew Jus
Member since 2026 · 8 posts · 1 vote

I am an investor in Texas. I may have over leveraged by buying too many properties.

We ran into some bad contractor and most of the rehab money has been used up. Pretty much

stuck on several projects and in need to complete it ASAP. Any suggestions or advice would help? We've been

looking for an equity partner to help finish as well and trying to keep up with the monthly expense.

All the home still has equity and room for profit. Thank you very much.

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  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    5mo
    Quote from @Drew Jus:

    I am an investor in Texas. I may have over leveraged by buying too many properties.

    We ran into some bad contractor and most of the rehab money has been used up. Pretty much

    stuck on several projects and in need to complete it ASAP. Any suggestions or advice would help? We've been

    looking for an equity partner to help finish as well and trying to keep up with the monthly expense.

    All the home still has equity and room for profit. Thank you very much.


     Might helpful to understand how many properties you are talking about?  Where they are in Texas? How much investment are you looking for etc?  when does your current financing come due? 

    Hurst Real Estate, INC4.991 Reviews
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  • Bo SmithPro Member
    Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
    5mo

    Drew, this is the classic over-leverage trap and bad contractors combo. You're not unique -- most investors who hit this point either got greedy on deal count or trusted the wrong GC. Here's what matters right now: stop the bleeding and triage the projects.

    First, pause buying. You're stuck, so adding more inventory won't fix it. Second, audit your GCs immediately. Is the money spent actually on work completed, or is it sitting in limbo? Bad contractors either ghost, drag timelines forever, or pull funds before finishing. Get them off your projects and bring in someone who will actually finish. This sucks and costs more short-term, but it's cheaper than holding 6 months while someone milks you. Third, on the equity partner angle -- be careful about the terms. Giving away 20-30% of the project to someone who brings capital is better than giving away 50% because you're desperate. You've still got equity in these deals, so use that as leverage, not surrender.

    How many projects are we talking about, and roughly how much are you still short on each one? That'll help figure out if you should refinance, bring in a hard money lender to pull out equity, or find a structured partner.

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  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    5mo

    Would it be easier to sell off some? If you have equity and you can walk away with $$ to throw at others it's worth it. Easier than brining in a partner. Make sure you find and vet a reliable contractor so you don't dig a deeper hole. 

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  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    5mo

    To give some insight on what are you facing? Example, you have 5 projects and still need $300,000 to finish, what are the ARVs, do you have some options to sell as-is with just painting and carpet/flooring? 

    These are the things I would be asking and researching on what you have going on with the deals. The other thing I would say, there are plenty of people I bet would be willing to go in on gap funding/rehab costs in your local market. There are a lot of people that have $50k-$500K just wanting to get a solid return and can fund you within a couple of days. These are people like friends of investors, investors that go to local meetups, and people there are people like family in the area too looking. These people have the ability to fund something without the red tape and high pricing as larger grounds/HML.

    The McKernan Group4.957 Reviews
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    5mo

    As Jay mentioned, you might want to post how many properties you're talking about and provide a little bit more information.

    I know people who would absolutely be an equity partner on a deal, but just realize you are not going to get the better end of the stick. What you would think is 50/50 is going to be very different than an equity partner thinks 50/50 is. At the end of the day, being able to keep something is better than losing everything. 

    7e investments53 Reviews
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  • Drew Jus
    OP
    Member since 2026 · 8 posts · 1 vote
    5mo

    Jay thanking for getting back. Currently we have four still needed to be completed. Yes there are all in Texas. We can discuss about partnership and splits can be be fair if someone can help complete the project. How I may i reach out to you in person. 

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  • Drew Jus
    OP
    Member since 2026 · 8 posts · 1 vote
    5mo

    Bo I appreciate the feedback. It’s helpful. We currently have four going on and one or two is almost done. I’m at a meeting on one of them maybe another 15 K we should be good and there’s already potential buyers lineup for the property. We have one property that has a lot of equity as well. If you’re interested, we can discuss further. How may I reach you in person?

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  • Drew Jus
    OP
    Member since 2026 · 8 posts · 1 vote
    5mo

    Caleb thank for the feedback. Yes I can sell it as is. That’s a possible options 

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  • Drew Jus
    OP
    Member since 2026 · 8 posts · 1 vote
    5mo

    Thank you Peter. Yes I do have some homes maybe two is near completion. Will need like $15k on each one of them. The others from what I see still have about 2 months to complete. Most of them will need to raise capital or get gap funds for $30k each to complete. I have 4 total properties. If you like to discuss in person let me know. You can pick and choose whichever project fits you best. 

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  • Drew Jus
    OP
    Member since 2026 · 8 posts · 1 vote
    5mo

    Thank you Chris. Yes I am taking your advice as a consideration. Much appreciated 

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