All Forum Posts by: Gary McDaniel

@Chris Bell Yea I believe so at this point as well and nothing can't go forwards until I have the funds for the downpayment. 

@Jason DillardThe seller only wants to finance with $190K down and that I don't have right now. I think I should have rallied my investors first before looking, but I'm trying to work through it. They are all on separate Tax ID's. He wants to have individual deeds and mortgages per building as well.

@Stephanie P.

$9,794.20MONTHLY EXPENSES

$3,080.80MONTHLY CASHFLOW

13.38%PRO FORMA CAP RATE

$83,637.00NOI

12 monthsTIME TO REFINANCE

56.01%CASH ON CASH ROI

25.34%PURCHASE CAP RATE

Acquisition

Refinance

Financial Info

$328,000.00TOTAL INITIAL EQUITY

10.00%TYPICAL CAP RATE

2.14GROSS RENT MULTIPLIER

4.69 / 1.79DEBT COVERAGE RATIO

$836,370.00ARV

I live out of state and I'm planning on going to see it tomorrow. My realtor here in Atlanta said the same thing about the 7 day DD...everything just seems to be so competitive and this would be my first deal.  I appreciate your feedback @Geordy Rostad @Matt Hurley @Stephanie P.

Hey Guys,

I'm needing a little help in structuring a deal/financial advice. So I'm negotiating a 20 unit property for sale for 300K. Needs quite a bit of work, but it is currently partially rented out, so it is cash flowing a bit. The owner wants a 30 day close with $10K EMD down and 7 day due diligence. The owner doesn't want to do a blanket purchase, but to sell each building individually (there are 4). Owner also said he would possibly finance with $190K down. My HML said that they would finance the purchased and rehab, but I would need to put down 20%. I dont have the 20% personally. The HML also said if doing the possible owner finance that they would have to have the first and only lien on the property. This is my first purchase so I want to make sure that I don't over extend, however it seems like a really good deal.

Also they all are 1br/1ba units.  The area isn't the best, but everyone needs a place to live.  I would like for it to be as nice as possible though.  I've talked to section 8 and they've said for that area they would provide $350 per month and I would like to rent it out at, at least $400-450.  The current total rents are $2935 and that's for April 2016.  If I did use a hard money lender and wanted to refinance, how would that work since it's a commercial unit?

Hello fellow BP'ers

I recently found a 24 unit apartment complex with an additional suite for a maintenance person or apartment supervisor in my hometown.  The building was purchase to be a place where substance abusers could go after rehabilitation, but the building owner found another location that he was more interested in.  The apartment complex is currently free and clear, and the owner is trying to sell it to free up cash. 

I have been talking to a lender that's interested in funding the deal, the only thing is he's also interested in being either full owner and paying me as a wholesaler, making me a partial owner, or allowing me to run the apartment.

Because it's in my home city I'm conflicted because I have everything at my disposal there, i.e., trusted realtors, trusted contractors (in my family), trusted property manager (aunt), and my parents.  I'd love to keep it all in the family.

The apartment complex could use a little work.  Currently 12 units are being rented out from $260-375 per month.  The city has assessed the property at $371,000 and it is being sold for $215,000.  There was recently a price reduction of about $86,000. Six of the additional 12 units are being renovated.  The owner bought it for $168,000 as a foreclosure and put approximately $47K in it, so at this point he just wants to get his money back.

I don't necessarily have all the funds myself to be able to do it all by myself but I really need to structure something so that I can secure it.  

This will be my first deal and I don't want to necessarily let it go for something as minute (although very necessary) as money.  I see a lot of times first timers jump for something like this and succeed.

I need some advise.  Thanks so much for your time and all replies!

@Don Blevins @Adam Schneider @Travis Beal @Matt Morgan Thanks for the heads up guys...after more homework I've decided not to go through with it.  I appreciate you all looking out!

The property taxes are $1634, Insurance $276, and HOA 143, Projected rent I would like to shoot for $2,300/mo. It's currently vacant and newly renovated.

Thanks @Travis Beal & @Matt Morgan

So the home is listed for $205K just around $22K below market value.  I have already spoken with a hard money lender that is willing to go up to 80% which is $164K and I would have a down payment of $41K with an interest rate of 4-6% amortized over 30 years for 3-5 years.  The owner also said she will finance up to 10% leaving me with around $20K to find for the down payment with a rate of 6% for year 1 and 8% after that and ballooning in 3 years.  The place is within walking of the beach, outlets, convention center, etc.

Hey BP Family,

So I've found my first deal in the Long Beach area that I think would work great as a AirBnb property.  I haven't physically seen it yet because I live in North Carolina, but I've visited the area within the last 2 weeks.  I've talked to a lender and they are willing to finance for up to 80% at a 4-6% rate amortized over 30 years and the owner is willing to carry for an additional 10% with an interest rate of 6% for the first year, 8% after that and balloon in 3 years. I plan on refinancing into a traditional mortgage by the third year to cash everyone out and bring down the payments.  My question is what are some creative ways to come up with the remaining $20K or so?  I really don't want this deal to slip through my fingers because it's in such a good area, but financially I don't have the resources to be able to make the down payment.

Does anyone have any tips, warnings, or know of an alternative way that I could structure it?  

Thanks for any help!