Investor · South Ozone Park, NY · Member since 2015 · 20 posts · 0 votes
Hello Everyone,
This is Colin, i own a e-commerce business, which is a really good passive income that can replace my regular income. i want to take a loan on my company name, which readily available for 150k + at 7.8% interest ( we would have to pay 13k month to repay this loan). So i would like to invest these funds in real-estate.
What would you recommend?
1. Buy multiple B / A - type rental properties out of state ( out of NYC) using turnkey providers with an investment of 20% in each property and get an 80% loan from the bank.(4- 5 property asap)
2. Buy multiple B / A - type rental properties out of state ( out of NYC) with the BRRRR strategy.
3. Invest into multiple unit apartments with the 20- 30% down.
4. Buy property in New York (since i live in New York) and apply the BRRRR Strategy.
Thanks for your recommendation on this matter. i appreciate all.
@Joe Villeneuve That's exactly, what i'm trying to do and i even want to put the money in solo 401k and use the money as investment.
I see your in Michigan, do you recommend any states where we can hold the property for rental (owner market )
Michigan. I work with Out of State Buyers all the time. The Equity Buyin is very popular here. It allows for high cash flow, the OSI doesn't need to do any rehab or tenant placement, and the seller stays on as the managing Member in the LLC, so they have a vested interest in the quality of the investment.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Colin Kamesh Raja I'm a little confused by your post. Are you hoping to invest $150K and have cash-flow >$13K per month so you can repay your loan and make some passive income? That's over 100% annualized returns ($13K * 12 months = $156K on $150K investment). Am I reading your question right?
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
9y
Hold the property in an LLC with you as the Managing Member. Allow others to buy into the LLC and get that % of the cash flow, based on the relationship between the ARV and how much they paid for their membership.
Investor · South Ozone Park, NY · Member since 2015 · 20 posts · 0 votes
9y
@Andrew Johnson I'm sorry for the confusion, i already have active cash-flow for more than 13k per month, i would have to repay the loan out of my existing business to finish the 150k loan in a year.
Im trying to do invest out of 150k loan and create cash-flow in real-estate.
@Joe Villeneuve That's exactly, what i'm trying to do and i even want to put the money in solo 401k and use the money as investment.
I see your in Michigan, do you recommend any states where we can hold the property for rental (owner market )
Michigan. I work with Out of State Buyers all the time. The Equity Buyin is very popular here. It allows for high cash flow, the OSI doesn't need to do any rehab or tenant placement, and the seller stays on as the managing Member in the LLC, so they have a vested interest in the quality of the investment.
Wholesaler · Pontiac, MI · Member since 2008 · 21 posts · 3 votes
9y
13k a month is too much for 150k only thing you could do that would envolve real estate is if you were able to get high LTV loan on investment property but realize you will now be taking on 2 loans. I do know a creative way to use your money as down payment money get it back at closing cash as repair or incentive money. Pay back your loan now you have the properties that cash flow and loan is paid back, and can be used on next package of properties. I am sure there is some deal out there that you can tie your money up in but your debt servicing is going to sink you if you are not able to pay back high interest rate loan on your business pretty much within months. My name is Nahshun Nevils I have done many deals and structured them in a way that money is given back at closing that you did not have in the first place so structuring to get your down payment back at closing as cash incentive for buying or for repairs you can set yourself up with the money your have available to you just be careful not to put yourself in a pickle.