All Forum Posts by: Adam Bartling

Everyone I know that had a w2 and now full time all crossed 70% of their w2 income in RE and then went full time.  I also know others who have 50- 200 home rentals and still keep their w2.  As a small business owner ( I own a full service sign company also last 12 years) if you do not have 1 year of operating expenses saved up, keep the day job.

You can easily market as if you were full time.  Think about it 5 good posts per week is not that hard find what suites you.  

@Abhinay Dutta Can you go 6 months no profit?  How are you going to market? What are your #s before you move forward?  Have you spoken to the county about permitting? Are you managing the park?  How do you sustain a onsite manager?  From your initial quotes to project begin, are there any price increases?  Who is supplying the tiny homes?  Can you source all your building materials locally?  

 How is that to start your planning?

It is possible. The contractors will need to be signed up and registered with the VA ( basically a check list, any legit contractor will be able to qualify) You may also see the Renovation loan with Lots of repair pushed into a One Time Close Loans are more robust and have ability to knock homes, install roads, pools, gazebos, additional story etc. Basically it will be up to the lender on how they want to classify the loan. The only issue I see with your idea...you will need to get properties that you can have some lead time, or move fast on putting together all the required docs and permitting. Otherwise, make it happen!

@Dan Aharon You will need a loan that is asset based....I know a guy.    You will not get an SBA loan, unless you are building a resort of hotel.

There is a lot of data not seen and you also have to know the online value calculators for 2023, "AINT HAPPNEING"  Lenders are going to look more at 2021 values and max 70% Cash out, that is what I am seeing.  There are some that will do 80% but have not had a true 80% cash out in last 2 months.  

Maybe I need more volume of clients..... but I can take a look if you want and put it in front of 5 lenders I know are doing COs

Lenders are tightening up, but it understood when we just had a Major and Unsustainable Inflation.  Hope this helps without diving into your 

You got the right idea, just find the deal that makes the Dollar

Even though there are lender who will do DSCR loans down to .8, that is if you are going to do some rehab and raise rent. You still have to make a profit after expenses so yes 1.35 is much better. Expect DSCR 7s-9s with full documentation. If you are a No Doc Guy, please do not compare full doc rates, no docs you are looking 11-13s

Does this help?  What other questions do you have?

Hmm where can he find one??

@Jason Kenyon Keep reading in here, where you are now being a bird dog for a PreForclosure Group or getting a 2-4 unit house and moving into it might be the easiest options to get some $$ and experience.  I am not not where I want to be either, I want to completely exit one of my companies and replace all it's income with investment $ flow, then I get back more time with the family, that is my Why.

@Jason Kenyon Typically with business loans, there has to be some business operations or need for equipment. If you are in real estate you will need to start thinking about the property. The property is what the loan is based on, however you need to have 680+ FICO and have some cash reserves, but if you are looking at $20K in a loan... NO you are not in a position to run your REI on your Cash.

You are going to need this money for down payment and reserves, investment properties are typically 20-25% DP.  

There are lenders who will do DSCR loans down to .8 but that has to be for a property you are going to rehab. 1.25 is typically normal but I would look at the property being a higher ration as you need to make a Profit.