All Forum Posts by: Christopher Pride

Are lenders pulling back or am I just not shopping the right ones?

I have a line on a deal for a property that I believe is undervalued and has great future potential for improvement.  It follows the first 3 rules of real estate, is zoned "light commercial" which would include multifamily, the direction I want to take it.

It has a well established restaurant and 2 residences.  My plan is to move in to one while I work on other parcels attached, then develop the 2 residential lots for multifamily and/or STRs.

This has stumped several lenders who have told me "we don't do commercial, mixed use, etc"

I am at the point where I may need to pass because I can't seem to find a lender able to work on it. 

As with anything, numbers don't lie.  The property stops making sense at around an 8% mortgage.

Wife and I are coming off of a long-term sailing trip after having a kid.  This is an open-book situation where we really are free to decide where we want to be.  The wife works remotely and I have been working on boats for beer money the last couple of years. We've only done one flip in the past couple years, as well, and I am in analysis paralysis of our next move.

I'm looking for work, a property to invest in and to househack a place to live.  I have a lot of real estate experience, have worked in construction and have tools to work on a property myself.

We've lived in Southern and Central California, currently in SW Oregon (went to college, lots of friends here), have family in San Angelo, Texas and near Seattle.  That said, we don't need to be next to family but being somewhat close by has advantages so those places are favored somewhat.

The strategy is to buy, househack a value-add multifamily for 2 years then rinse and repeat until we can build up enough capital to either start developing, move to larger multifamily or the wife wants to start a senior care facility. 

We're interested in a place to live that breaks even with 3 units rented, has some value to add and is relatively clean in an area good for raising kids (no ghetto/near industrial, etc)  We have about 100k of skin.

What are some areas worth focusing on?

Do you have any recommendations for that area (Realtors, lenders, other houshackers)?

Anyone ever partner on a househack?  I am considering it to leverage a much nicer place than what I can afford putting 100k down.

Originally posted by @Aaron K.:

@Christopher Pride are you trying to fix up and sell the property you're living in or are you trying to secure funds for a new flip?

Slightly more unique. Hard to explain but if you're interested in talking...

At least for me...I think it comes out of necessity or opportunity.  You buy a place and think...I can remodel that or I am not using that bedroom.  Boom.  You're an elite house-hacker. 

I suspect you're not getting much feedback because there's a wealth of info here on wholesaling.  I would spend my early times learning as much as I can, asking myself how I can bring value to someone who wholesales. Someone once told me people do business with people they like.  Get out, meet people in the area, ask questions and add value. GL!

I am house-hacking right now and need some funds to finish the project with the goal of listing it asap.

I started exploring financing and realize I don't have a benchmark in this market.  So far I have an offer for 2 points, 9.5% for hard money plus appraisal.

I am looking for 100k and have about 400k equity on a 700k property in a hot neighborhood.

Have you encountered anyone able to do better???  Can you yourself???

Ideally let's discuss ways to put more deals together and make more money.

I'd be willing to discuss more...  What would be a typical arrangement?

I have financed other deals with partners or my own money but I am a little out of my league when it comes to the market on private funding.

I am hoping someone can point me in the right direction.

Sadly, Mom passed in 2018.  In her final moments, a relative weaseled in to her life, attempting to steal her estate. We came to help our Mom at the end but this person literally hid the fact my Mother was ill.

I threatened suit and brought them to the mediation table, being the only executor and beneficiary.  We signed an agreement returning the estate in lieu of criminal charges and civil suit but we've had several delays with the court trying to clarify bank, insurance and other accounts.

Several months ago, after waiting for this to be resolved, I decided to house-hack and just do the remodel myself, financed with my credit cards. I've gotten far but after another delay, I'm in between a rock and a hard place...

My wife and I had been sailing for some time and as a result have very little income to show. Naturally as a result we were denied when shopping for a HELOC. We're at the point now where the CCs are eating us, we're getting close to maxing out, and thanks to full-time work remodeling this house (eg not employed), our cash reserves are shot. With another 2 months added for the court to clarify another detail, my wife and I are under time pressure. We're signed up to sail in an annual rally starting the beginning of November 2019. Whatever happens, we're out of here for at least a month, ideally longer; We'd like the house closed by November 1.

Hard money? Private investor? Crowdfund?  Looking for any help or direction you can share.

Also, if I may add, be sure to sign everything (your name) DBA (your business name_, LLC. I got hosed one time for just signing my name on a lease for a property for the business.

Thanks, Michael for taking the time. I appreciate that way of looking at it. 

I was considering just popping it in a mutual fund or some other investment and just rake in the return but I am motivated to do much much more. 

I am not as inexperienced as I let on.  It's been 10 years since my Oregon real estate license but I've managed to keep a few toes in the game.  I have always had a somewhat linear way of looking at things, thanks to catering to a few flippers, but as I grow wiser (achem) I am really wanting to find a niche more profitable and far less manual labor! Hence the idea to move toward multifamilies (it's approachable).

I have always wanted to get in to raw land and developments. I've done rural, farm and forest land so I'm off training wheels so to speak. I certainly would need a mentor for that but I would create a lot of value for someone willing to give a little direction and field the occasional question.

Thanks again! Any more advice would be welcomed.