All Forum Posts by: Ryan Landis

@Ivan Maldonado not a "cheat" but go after some of the small multifamilies (2-4 units). When you go to borrow they can use the income off of the units. Not sure on your market, but depending on the price point and rents that might solve your problem!

@Ricky Graziosi I always really liked the one in San Jose/Milpitas that the guys put together. SF and the East Bay have a few too. Just make sure it is one that focuses on networking. There are a number in the Bay Area where they are basically trying to get you to invest in their projects and turnkey solutions out of state

@Tyrone Marson I would just make sure that the "ease" of making it a condo is as easy as it sounds. Couple other things to consider (or at least I have when I do little things like buy bulk and sell individually). You will have transaction costs on the exit. Let's use 5-6% on the $3M value and you are at $150-$180K. Add some holding costs, professional fees, potential market fluctuations, and $1.475+$850+$150K and you are at ~$2.5M (not factoring in the holding costs, professional fees, etc.). Sounds like it could be interesting, but I don't know your financial situation and I also don't know the market well enough to know if those fly off at that price or struggle to move

@Ricky Graziosi there were a couple great meetups that were taking place monthly. Not sure how things are working fully right now with COVID (i.e. zooms, etc.) but once things get back to normal I would recommend checking those out for sure!

@Paul M. DeAngelis everything is a negotiaton, but make sure what they are doing is by the book (i.e. disclosed, etc.). Not that your friend would intentionally do this, but likely if he/she is going with a regular loan, they are going to say it was their money. Just make sure to protect yourself.

People don't always sell, so keep that in mind as well. If you are not being paid monthly from cashflow, you should get some extra benefit. I imagine they are not putting you on the loan so you are really only providing 4% of the total purchase price - in exchange for 40% of the profits - sign me up ;)

Just keep in mind if things don't work out, you likely are on the hook for 40% of the expenses?

@Ricky Graziosi welcome to the community! I am sure you will devour all of the knowledge that is on the forums! Check out the podcasts if you have not already!

Hey @Eli M. you will need to find a lender that can do it. Most will do it with the bank they use for their business checking/etc. already or find a broker that can do it. I don't know anyone that has tried to di it in the last couple months with COVID going on (I imagine everyone is swamped with all of the COVID applications) but in general, if you have a solid business with a good income/earnings you should be able to not have too bad of an experience.

@Vasilis Axios I was talking to my buddy and he is quoting rates in the ~2%'s right now. That being said, the opportunity cost then is lets call it sub 3%. So if you want to put yourself in a strong position, set aside the money in a checking account to make sure you can ride out any storm. That is just my take though vs. putting more down and having less cash reserves.

@Karina Gomes (ARV x .7) - $80K rehab = what SOME people will. The fee you get is basically the difference between what you get it under contract for and what it ultimately sells for to the end buyer. Some people may pay more, others less. But overall your general logic is there. So if you want to make a $10K wholesale fee (or any sized fee) you need to get it for even less than the math. Just keep in mind who might be paying closing fees/etc. and just price in everything. No one ever got mad when they made an extra buck.

@Kyle Hoppman I have historically focused on debt to keep things a bit easier. Outside of that, you just need to tell people what you are trying to do!