All Forum Posts by: Chris Davidson

@Aaron Akins personal loans are a wide category. There are those family and friend "loans" that when you give them you don't expect to get them back but will be happy if it ever does come back w/out interest. Then those like @Steve Vaughan mentioned. Loans backed with collateral filling a need. These can make sense but is such a wide range of things. It could be rehabs, car issues, seed money, expansion money, to what ever. The biggest factor is do you have money sitting around that you are ok if you don't have it and willing to make a small amount off of it. 

Currently unless its friends or family, I would rather put the money to use myself and get greater returns than what I could lending it out.  Aaron see you are in the area if you want to dive further into it feel free to reach out.

@Doug Eric Gueirn all depends on the seller. It is a starting point. Right now I want a better price, or better rates. 

In short you have Price, Rate, LTV, Payment, and Term to adjust on creative deals. What makes sense all depends on what is in play and what both parties are trying to accomplish.

Best of luck!

@Brad Miller Reach out to some lenders. Your finances will depend on what makes most sense. From conventional, portfolio, DSCR, to HELOC's.

Best of luck! 

@Myla D. HELOC will be the cheapest ST if you have equity. Also could go HML. Depends what you are looking to use it on and what the numbers say.

Best of luck!

@Haley Womboldt get a baseline. You haven't given much info are they asking 3x market and thus asking price at 0% is a good deal for them, or are they asking market and 0% isn't going to work. You can move price, rate, terms, and others. Figure out what they are looking to do and see if you can help make it happen. 

Cheers!

@Michael Oliver reach out to lenders who work with investors. You should be able to get a 1007 on your existing to offset its loan. The 1007 is single family comparable rents. While it may not be what you are getting in STR income it would be what lenders can use and should get you pretty close.

That is where I would start and see where it leads before going down other paths. If you still can't qualify with the 1007 maybe adjust your plan a bit, or look at different financing methods.

Best of luck!

@Arjun Epu if he is looking to not occupy it, then the assumption wont work as to qualify he would need to make it his primary residence. 

I would move on to another buyer or find a different option, because you likely will get 30-60 days into this and it fall apart and you are not closer to getting what you want.

Best of luck!

 To go against what others are saying and require a bit more work, reach out to your title companies and see what they can do to help. Work backwards and find deals that where bought creatively and reach out to the new owners. Part of creative financing is being creative so if you are just trying to copy what others are doing and not really understand the mechanics of it you might miss some opportunities. 

Cheers!

@Anna Kay short answer no. 

Long answer if you aren't concerned about liability do you even need a llc? Also I would just look at getting it set up where you are going to be doing business over where you reside unless it is cheaper where you reside (being California it wont be).

If you have already picked outa PM might be worth asking how most of their clients hold, but know everyone's goals and methods are going to be different than yours.

Best of luck!

If you have "low" rates on a 1st position it can make sense to not do a refi and just get a second of some sort. It all comes down to amount of funding needed, and what the numbers say. However I have been using LOC's for awhile. The 5% may or may not make sense but would just have to dive into the numbers with what the lender can do. Another option would be a refi and pay off one property to turn around and have a larger LOC on a "free and clear property" This likely will have higher payments when fully utilized, but could provide for a very flexible path to acquiring more units.

Creating relationships with a bank is huge IMO when you get to a point where you looking to scale. As a good lending partner can do more for you long term then a discount online lender can in the short run.

Best of luck!