All Forum Posts by: David Sanford

@Jorge Vergara hey Jorge. My business partner is a property manager in this area. Feel free to shoot me a message and I can pass along his info.

@Sam T. Hey Sam. Certainly! I recieved the call on June 20th about someone interested in selling their deceased parents home. I got the address and did some online research and then visited the property on June 22nd. I ran the numbers and made my offer on June 25th of $120k. They agreed and we had a contract signed on June 28th for a proposed close date of July 31.. I then decided I would try to flip it myself and had a home inspection done and found about $20k in additional repairs that were needed under the house (mold. Lots of it). I renegotiated with the seller and ratified the contract for a new price of $100k on July 6th. I then frantically called people I have met at REIA meetings asking around for a hard money lender. On July 17th I found a hard money lender and closed on July 31st! So in summary, it was about 19 days from contract to finding a lender, and about 33 days from contract to closing.

@Markian Sich yes I would love to go commercial! I reckon I'm just nervous to make the leap and dont have the funds in place yet. I have access to hard money. Just not sure how I can use it towards a commercial deal and still meet the 6-9 month payoff my hml wants.

I have been investing in real estate since June of 2015. It all started as a hobby of some sort for a little extra cash after reading Robert Kiyosaki's book Rich Dad, Poor Dad. My first house ever purchased was a short sale that I picked up in June of 2012 for $135,000 that my wife and I lived in for about 3 years. Within those 3 years we updated the flooring and put some fresh paint on the walls.. nothing major at all, maybe around $5,000 total in improvements. Fast forward to the summer of 2015 when I purchased a bigger home to move into decided to rent out the first home. We had it appraised and it came in at $190,000! Not only were we excited about the equity we built, but after renting it out it cash flowed about $500 profit per month. This first deal gave me the itch so we picked up a few more in 2016 and had close to the same results. Fast forward again to the summer of 2017 when I decided to shift my realestate into a higher gear. Now, while being in the military has some perks, the pay is not generally one of those perks. I had to find creative ways to continue to grow my business but knew very few ways. I was away for a military school when I stumbled upon a YouTube video by BiggerPockets where I learned about the BRRRR method! Genius! I instantly cashout refinanced my first home and pocketed about $20,000. I used this, plus $10,000 I had saved up, to buy 2 more rentals as a package deal with a conventional 30 year mortgage with 20% down. This was method number 1, which got me 2 houses out of 7 within this 12 month period. I then did another cashout on a rental I bought in 2016 and used that money to buy 1 more rental, which made 3 out of 7. Now I was out of properties that made sense to cashout and had to think of another way to fund more rentals. It was at this time I attempted to find some seller financed deals where I got really fortunate. I reached out to a investor that I purchased a home from previously and asked him if he had any rentals he would be willing to seller finance, and scored 3 more rentals for no money down! This was method number 2 which now added up to 6 houses within this period. For the third method, I decided to give wholesaling a shot and put out about a dozen bandit signs. I got a call and contracted a house for $120k that needed about $20k in renovations and would sell for about $200k. Instead of finding a buyer, I decided this would be my chance to start flipping and I aggressively started searching for a hard money lender. I eventually found a lender and just closed on deal number 7 within the past 12 months using 3 different funding methods!

thanks @Bruce Scannell. VA would be my area of interest. I of course will eventually be open to any market but for my first deal I want to stay semi local within a couple hours of a drive. what do you think about using hard money to put the 25% down and using traditional commercial financing for the remainder? I guess then my challenge would be paying back the lender in a timely manner.

Looking for someone that has purchased a few apartment complexes that can assist me with how to analyze a deal and tips on how to structure deals with limited capital. I have access to hard money loans, just not sure how to use them for an apt complex I want to hold vs using a hml to flip a property.

@Edward B. thanks. I have seen reviews that they have backed out of a deal last minute and that they have missed close dates. so these reviews worry me a little. @Jay Hinrichs yeah their rates aren't the lowest I have come across but still able to make it work. I have a handful of deals under my belt so hopefully this will help. the issue I see happening is that I haven't refinanced but 2 of my properties and they want to see 4 refis to show I know how to force appreciate.

Anyone ever closed a deal with using Lima One financing? how was the process? I'm looking at finding a flip with them.

Did you end up using them? If so, I'd like to hear about it as I am considering using them.

100% what Marshall said. not too sure how else to go about it with limited funds