All Forum Posts by: Yan P.

So to pacify the bank and show them you're conservative. Got it, thanks Bryan.

Bryan Hancock, any chance you can expand on keeping 10% of your long-term debt in liquid assets? How does that allow you to continue borrowing debt and keep your capital less constrained?

Phil,

I'm a beginner, have four units and just purchased three more. So my opinion doesn't have too much weight. Having said that, if you are going to do the work to source, value, finance, rehab and manage a property, why would you just use your own capital? After the learning curve, assuming you know what you are doing and treat investor cash as you treat your own, then why not? You make investors happy, earn legitimate sweat equity fees that you wouldn't with your own cash, and grow exponentially instead of linearly.

Thank you for the responses. Bill Worsley, that was about as thorough of a response as I could ask for and exactly what I was looking for! Thank you!

How about ability to scale? Is it limited by the amount of capital you can raise or limited by demand for loans?

I know we have some experienced lenders on BP as well as experienced investors who would know how larger Private/Hard Money Lenders (PHML) are capitalized. Is it always all equity or do the PHMLs ever have a mix of equity/debt in the form of credit lines from commercial banks collateralized by the first lien loans they make? Or maybe something else...

Thank you

J Scott , how did you come by the appraiser that is serving as your adviser?

Less than 10K. That's not necessarily a good thing. Just because a bank wants to give you money, it doesn't mean you have to take it. Make sure cash flow covers debt service cost, especially on a bad day.

Project completion update. After making a few additions, the final cost was about $340k. I had two appraisals done for the final refi. They came in at $380k and $450k (talk about an inefficient market). I went with the latter which allowed me to pull most of my cash out. Now the place is break even with me living in one unit. Goal two complete!

Will Barnard,

Are there any requirements from the bank to submit offer in the name of the company and forward operating agreement with passive/limited partner's name? Minimum ownership...other considerations I might never learn without doing?

Please tell me when the BP community figures out where gas will be in the summer. I will be sure to take a futures position! :)