All Forum Posts by: Dave Carpenter

Welcome @Andy Bonlender 

What areas of Milwaukee are you focusing your wholesaling efforts on? 

Also, I'd encourage you add a picture to your profile. It adds credibility and may encourage people to talk with you. 

@Barry Wilbanks it sounds like your "unfair advantage" to quote the BP podcast guys is you experience in construction. 

You may want to start by finding a flipper who is experienced and offer to do work for them at a slightly discounted rate if you can ask questions and have them show you the flipping process as you work. 

If you do good work and show motivation it's possible they may be willing to partner with you on another flip where you could GC and they could bring the money. It seems nearly everyone has a hard time finding good contractors. If you can be that good contractor that many flippers and buy and hold guys are looking for you would become an invaluable asset.

Thats how I think I would approach it. 

@Samantha Klein I think you could make a strong case either way. You many want to consider what your personality and investments strategy is a better fit with. I currently have 4 duplexes and have often times had tenants that are at similar stages of life and get along great. I think for them they like the larger units and many have planted gardens in the back yards. I think most times smaller units can be more profitable per door, but you do lose on efficiency of many units and one location. pros and cons. I would focus on which deal is better and then decide of one style of property changes your mind over the hard cold numbers.

Good luck!

James, I think I am a bit unclear on what part of your business you are looking to add a partner. If you currently have rental income from properties you own (the $79k per year) I would see that as your own business. To me it seems like you may need to bring on someone for the property management business and future developments to help with funding and maybe also faster scaling. 

I cant see why you would need to cut a partner into real estate you already own?

Are you looking for a partner to provide value other than capital to speed up your growth?

It seems to me like if there is a way to structure the deal 50/50 then it makes a lot of things easier, but also takes away your majority ownership.

As for the amount of cash for the amount of equity, I am thinking of the scenes on the tv show Shark Tank where the "Sharks" ask the entrepreneur how much they want and all do the quick math to determine what the entrepreneur has valued their business at. Sounds like for you that might be the $1.4million potential valuation.

@Jerry Padilla thats super helpful, thank you! To make sure I am understanding, the 75% for SFH and 70% for multifamily properties is a freddie and fannie rule?

My situation will be 4 properties, each of which are duplexes. 1 I have owned since 2011, two I have owned for about 13 months, and the fourth I purchased in Feb 2016. 

I agree with Rod. Seems like a solid deal, no home run, but lots of games are won one base at a time. Only though I have is if this is the best way to use the funds you have. Would a few smaller properties like duplexes provide more cash flow and allow for a greater appreciation bonus down the road? This depends on your goals as well. Good luck!

Darren Eady It is a local bank in the Milwaukee area called equitable bank. They have a few branches but only lend in the south-eastern Wisconsin area. I don't know details yet but should be meeting with the commercial banker later this week. I'd assume most states would have a similar local bank.

I am looking to do the same thing. Currently talking to A local bank who says they can do that up to 75% of equity, but because I have only owned a few of the properties for less than 3 years (their benchmark) I won't be able to do a cash out, just a refi to get money for another property or two. Let me know how it goes!

What about hiring a kid for minimum wage to help you out? Kind of like paying a local neighbor kid to mow your lawn for a few bucks a week.

Devan, congrats on a solid deal, and props to you on sticking with it. Two good reminders from this flip. 1. Show they you are serious even if it means emailing to an area you like 12 times! 2. If the deal is good you can find the funding. This is one I need to remember. I too often try to go it alone and make sure I have the finding in place. Doesn't have to be that way if the deal is good. Congrats again, and thanks for the play by play!