All Forum Posts by: Deb S.

@Nate Marshall you're funny. I'm not paid anything. Just a member of the subto community.

There are quite a few FB groups about SS from SS units for sale, acquisitions and networking, SS investments and development, etc. Just do a search of the groups for 'self storage' and join the groups you feel would benefit you. 

I've found everyone to be quite friendly and answer questions that are posted. Hope this helps!

I would contact a realtor in the area or property management company and ask them about the neighborhood.  What's the crime rate like, school system, etc. Sometimes property is cheap because of the location (most investors will not buy it) but don't assume. Get some facts and decide with real information. If you do buy it and it turns out to be a not so good investment, you may also have a tough time selling at your asking price.  Do your homework before you put out any money.

@Louise Wigg if you need a discount link please contact me and I will provide it to you. Thanks.

@Jacobo B. If you want someone to fund your deal, you need to present a summary package so it looks professional and not like this is your first rodeo. I look for PP, ARV, exit strategy (preferably more than 1 in case your first choice does not work out as planned), length of time funds are needed, scope of work for rehab, pictures of interior and exterior, references, etc.

If you want someone to lend you a large sum of money that does not know you, the best thing to do is create a relationship first. Second thing is to make them comfortable that you WILL repay them and how your will give them back the principal amount loaned to you (exit strategy).

Hope this helps.

I have done PML and highly recommend it. As @Hal Kocher said, I also have lent money from my SD IRA which is preferable since you will not pay any taxes.

You need to have a promissory note and if the note will be secured, then you will also want a Deed of Trust or Mortgage Note depending on what state you are lending in. You can do short term lending or long term which ever you prefer.  Most investors are flipping so need your funds for 6 months or so.  

But there are others that are looking for long term.  You can lend for say 3-5 years if you want and then the investor would have to refinance to pay you back.

If you have any questions, let me know.  I am in several real estate groups including subto and know many investors looking for private money.  Hope this helps.

Hi Felicia, I would stay away from a HELOC because they are variable rate loans. The Fed is raising rates at least 2 more times this year and HELOCs are tied to the Fed rate. Example: I took a HELOC in the spring of 2021 at 5.5% to redo my pool. My rate is now 7.75%. My interest payment has gone up almost 50% - from $63 to $92. I only borrowed $15k and I make extra payments but you get my point. By the end of the year, if the Fed does those 2 additional rate increases, I'll be looking at 9%!!

Have you considered a HML to buy a property needing light rehab? You could then use a PML for the down payment $. Depending on time frame to rehab - hopefully < 6 months - then you could refinance and get a traditional mortgage to pay them off and not touch the equity in your home.

You'd have to crunch the numbers to see if this makes sense for how much you're willing to spend on another investment property.  Estimate closing costs to refi your existing home AND closing costs to buy the investment property using traditional financing compared to the idea I mentioned.  

Good luck!

Just be aware the HELOCs are variable rates and the Fed keeps raising rates - I believe another one is coming in the next few weeks for another .75%. These directly affect a HELOC interest rate. So make sure you crunch your numbers and allow for a couple of rate increases if you will be using that money for a few years or more.

For reference, I took out a HELOC in early 2021 at a rate of 2.99% for 6 months and then variable after that. Month 7 (December 2021) my rate went to 5.49% which I knew was coming. My rate is now 7.745%. Just make sure you will cash flow worst case scenario if using a variable rate HELOC.

Seems like the trigger was the change to a 'rental' policy that caused your insurance company to cancel you?  Have you tried calling other insurance companies and inquiring about an owner occupied policy?

If you are cash flowing, then absolutely keep it.  You're right about the taxes you would have paid if you sold.  On the flip side by holding on to it/doing the refi, you got a big chunk of cash to use on other investments and you still offset your rental income with the depreciation of the building so win-win to me!

When you can borrow at low rates, do it!