All Forum Posts by: Steve L.

When you're talking about conventional financing it works like this:

1. A bank pre-approves you for 250,000 (or whatever)

2. You find a property at 250,000 or less

3. The bank does their formal approval (appraisal, full verification, loan docs, etc).

4. The bank draws loan docs to protect their position.

5. The bank funds the loan.

You cannot buy two properties worth 125,000 each and sign one set of paperwork.

Now if you have a family member that will loan you 250,000 on anything you can draw one set of loan docs that covers two properties.

No, I would not invest in that type of business model.

What collateral could you give me with a master lease? What are you using the money for?  What is your skin in the game if/when things go wrong?  Why is this more compelling that my other options?

Chad, why don't you just do it yourself without an investor?  Find houses where the landlord is getting 1,000/month for a 4 bedroom and offer to master lease it for 900/month (with you taking care of all repairs, maintenance and management).  What does an investor bring to the table for you?

I think your plan is doable.  As others have said, I don't think financing will be your biggest hurdle.  

Banks typically want to see 2 years experience to count the rental income.  It sounds like your business income is enough to get you the first two.  

A lot change change in the market to predict 6-7 years out.  It seems like every 2-3 years you have to re-evaluate what works and what doesn't work and change your business model.  

One example, after buying 3 or 4 fourplexes you might be able to buy a 16 unit or something.  You might hate managing them.  

Something you should also think about, is trying to buy the properties under market value.  That would really jump start your business model and is how I have been able to acquire many units very fast.  

@Brian Gibbons @Jason Pachomski

So this means I can have a Balloon Payment in under 5 years right and pretty much any terms that make sense?

I bought a piece of vacant land in 2013.  I am structuring a deal to sell it with some financing.

From my understanding, Dodd Frank, does not apply to vacant land?

Are there any other rules that apply that I should watch out for?

Are you planning to pay cash (or private financing) and than refinance via bank loan?  Or getting a loan upfront?  This really changes how creative you can get.

They could carry a mortgage for 20,000.  You can pay it off for $1 in the first 12 months.  

Be careful though, likely the appraiser will see it has been for sale for X months for 80k and if they don't bring it in at 100k you might be in trouble.

California most commercial agents use AIR leases.  They are very landlord favorable.  I would probably never sign one as a tenant.  

I think it really depends on the market, your other options.  Maybe you just need to buy an office building :)

I still don't understand what you are trying to do?  If you have Buyer and Seller and they each have agents what are you bringing to the table?  Your transaction fee is for doing what exactly?

You need to provide some more info.

What is the purchase price, do you have the money or banking/financing relationships, what is the play with the property, have you talked to anyone that can backup the value?

That is amazing success.