All Forum Posts by: Bryan Z.

Thanks for the reply. I know I should not dump $700k cash into my primary, especially with current interest rates.

my only issue is funding really

I just don’t have the desire to start small right now. I know it’s difficult to understand my position as it would be difficult for me to grasp 10 years ago. My heart is just not in it.

My real reason for this forum post is ideas for how I can get funding. Are there institutions that will care more about my experience and methods and less about my income? My method of investing (buying extremely cheap while also needing huge amounts of rehab when one comes a long every couple years) and my extensive due diligence makes the chance of success extremely high. Combine that with the fact that I do have some cash and perfect credit history, lending me funds to invest is about as low risk as it gets. Considering that lending is simply risk vs reward, I was thinking there had to be some sort of lender that can recognize that risk. Too many institutions just plug you into pathetic and overly simplified algorithm. (Just as an example, if you go buy a new $100k s-class mercedes, and you pay cash for it, vs someone else buying an $80k air cooled porsche and taking out a low interest loan for it....the guy who bought the mercedes fits into the lending algorithm better than the guy who bought the porsche simply because one has a monthly payment and one doesn’t. It’s absurd considering the actual effect of your net worth over time is likely 5x worse on the s-class)

The commercial lending departments are a little more flexible than residential but not much.


I have no desire to buy and hold. I recognize my strengths at this point and flipping apartment buildings is what I want to do. I fully understand the numbers behind long term holding and what a property management company can do for me.

Anybody have suggestions for funding?

also am I using the forum correctly? I wasn’t a fan of the fact I was supposed to use my real name and then divulge personal info I felt was necessary for the advice. Is this the best section of the forum for answers? I thought this was a pretty active forum and was surprised at the lack of activity.

Thanks!

Hi, so I just joined the forum, nice to meet everyone. So basically I am at a crossroads in my life. I have a really good knack for investing but I’m not really sure how to proceed. Previously I’ve used a well off partner for funding, but I don’t really want to use him anymore. My financial situation......

38, married with one kid and one on the way

$300k completely liquid, (just sold apartment building)
Bought my current house in 2008, $50k mortgage balance $450k value.

I have no job right now. Wife is a part time Nurse practitioner. I’m focusing mostly on getting my house ready for sale and then probably focus on renovations for next house I buy. 

My wife and I want to move. I’d like to be living in new house by summer next year.

Looking at likely buying a $600k house and putting $200k in renovations on top of it if I had to guess. I will likely have $650k-$700k completely liquid. It is everything I am worth. (Made some bad deals with partners, I did all the investing but owned far too little because I was stupid.)

I can’t decide between getting a job and continuing real estate investing. I am pretty good at real estate investing, but I’m not sure how to get the money I need. I want to either flip $500k plus homes or apartment buildings, preferably 10-30 unit apartment buildings. But I also need money to survive because I diy a lot and I’m slow. (Took me 18 months to renovate a 20 unit building)

I do not want to build a rental portfolio. I’m experienced enough now that I know what I want to do and how I want to do it.

My problem is I don’t make a lot of monthly income and the banks don’t like lending when you don’t have a lot of income. My wife doesn’t make enough either.

So how can I take $700k cash, and buy an $800k primary home and then continue to real estate invest with almost no monthly income. I need like $50k-$75k a year of spending money too. At first I thought of a hard money lender, but I’m kinda slow in the flipping process and I’m pretty sure I’d get crushed with interest doing that. I’d like to dump all my money into the primary home and then line of credit on it, but I don’t think I’d get approved for the line I need.

cliff notes: i can easily turn $1m into $2m in 18-24months but I don’t know how to get the $1m. I’ve only done 4 properties (2) apartment buildings and (2) houses, but they all more than doubled due to excellent buying and creative renovation.

house - bought $165, renovations $40k, now worth $450. 11 unit building bought for $450k, $30k in renovation, sold for $1.2. 20 unit building bought for $400k, $500k in renovation, sold for $2.1.

I’m not sure if that’s enough experience and they just want sheer volume of properties like a low margin house flipper.

Any advice would be appreciate.

My alternate is make $200k a year at some high stress sales job I can get through a friend. I don’t really want to do that though. If I start that I won’t stop it.

Thanks in advance! Sorry if I don’t know the lingo, i don’t really spend much time in the “investor community“ so to speak.