All Forum Posts by: Account Closed

Account Closed has started 2 posts and replied 7 times.

@Benjamin Aaker will a seller require a down payment if they are seller financing?

0 Votes

Quote from @Account Closed:

What's up everyone, I've browsed the forums but I haven't really seen any solid answers here.

What I'd like to understand, is there a strategy (besides wholesaling) that I can use while having access to little to no cash (say the max available cash is $10k).

I would just love to hear from someone with a specific game plan on how to go about doing this. I don't need income from the RE investment to pay for bills, I have that covered with my day job but I have no savings (and no, I don't need a lecture on having reserve funds for myself ;).

Thanks in advance!

Hey Brian!

This is a great question & I hope to help answer it the best I can and with some prior knowledge!

My answer to you would be to find a hard money lender who will lend you more than 75-80% ARV or LTV on a property. They probably will give you an outrageous rate like 15% or something but it'll get you a deal

Here are some numbers my business partner is currently working with

PURCHASE PRICE: $360k

ARV: $650k

REHAB COST: $120k

ALL IN HARD MONEY LOAN $480k

6 MONTHS INTEREST ONLY PAYMENTS AT 15% INTEREST = $6,000/MO

ORIGINATION FEE: $19K (this is the only thing he had to bring to the table)

The rehab is most likely going to be $80-90K but he over shot and asked for $120K on purpose so that he can make the 6 payments from the rehab loan

NET PROFIT (hopefully in 6-9 months) will be around $75K

Hard money lenders want to see that you have some kind of "skin in the game" so maybe tell your hard money lender you can only pay $10K and they might just charge you a higher interest rate. But if you are able to do the rehab cheaper than the $$ they gave you, you can just use the rehab loan to pay for the interest payments.

Hope that helps and if not just ask for clarifying questions!

Thanks, Preston, love this approach of using the extra $$ to make the interest payments, great idea! Adding this one as a potential option.

1 Vote

What's up everyone, I've browsed the forums but I haven't really seen any solid answers here.

What I'd like to understand, is there a strategy (besides wholesaling) that I can use while having access to little to no cash (say the max available cash is $10k).

Thanks in advance!

0 Votes

Quote from @Josh Green:

@Brian Leonard

@Jared Prevost I would recommend reaching out to 27 properties.

Awesome, thanks Josh!!

1 Vote

Saint Petersburg, Florida

Quote from @Mick Pristas:

Hey Brian,

I would love to help you out! I work for a full-service wholesale brokerage getting around 25 off-market properties a month all over Hillsborough, Pinellas, and Pasco! Just sent you a DM

Awesome! Thank you!

0 Votes

Saint Petersburg, Florida