All Forum Posts by: Glidden Rivera

@Samir Shahani

Thanks- I currently own the property.

I just like the passivity of not having to manage the asset.

I have a good deal pipeline of nice duplexes (approximately 14)

Maybe a master lease option to an investor would work. Perhaps I can NNN lease it.

Just collect the spread.

@John Underwood

Good point. I definitely will.

@Fred Moskowitz

Thank you, I was looking for info like this because I was concerned about the Dod Frank Laws. I have investment in NY and Orlando.

Do you use this strategy?

@Roman M.

I have owner financed property as the buyer, and have yet to experience a bank exercise the “Due on sale” especially on a performing note.

To boot, I have explained what I would like to do with my lender, they are ok with it as long as they are in first position.

@Daniel Torres

If you truly don’t have time,

Go syndication. It is the most passive.

Depending on your ability you may qualify to be a sponsor ( handsome reward)

The nice thing in syndication is you can make monthly cash flow, profit sale and in many cases Hart most of your money after a refi and still maintain ownership. Most syndicators would like to hold your money a minimum of 5yrs.

Though they regularly force equity with value adds, and rent stabilization. This event allows quicker sales at higher prices, refinance and cash out earlier than the term. The stated term should generally have a fluff period that serves to ensure that the exit strategy can be executed.

I would make sure that the syndicator is paid last and only after the investors have made their returns. This ensures that the individual is a performer ( his or her profit is tied to the performance of the asset)

Buying single properties will not be passive.

Even if you have a Management company. You will need to manage the manager.

Another avenue you should consider is becoming a lender ( note owner)

Monthly cashlflow amortized over agreed term

No toilets, no tenants, no headaches etc.

You may foreclose and own a property from time to time but over the long haul if you take 100k over 30 years at 5.5% is approximately 70k interest

You have a note servicing company handle payments. Checks are mailed to you monthly for interest and principal. Pretty passive.

@Miljan Vukovic

I would use hard money to acquire and rehab.

Many of those same lenders are now rolling pretty competitive buy and hold programs. The advantage in this scenario is the power of leverage. I don’t like buying houses with my cash, I could probably buy a few few but would ultimately run of money quickly.

The other component to this equation: I don’t see a real need to buy deformed property when there are so many that need cosmetic touches. If you are just starting out, cash flow should be your target your strategy . Replace your income with rental income then you can take in larger projects.

If you can cash flow 400/ month on each property x 10 properties, that is 4K a month net.

Why stop at 10 right!

Point is, use hard money, soft money, private to acquire and rehab. Then refi, many banks and lenders do not require that long to season the property. Some do some don’t

Also consider owner financing ( seller carries mortgage) etc

I think becoming the bank presents an opportunity for me but also to help people.

Currently I have a tenant who has some credit challenges, they have occupied my property almost 5yrs with no missed payments, no headaches, they love the home and take care of it as if their own. I am going to refinance it 80% LTV. I am going to give them a mortgage at 9.9% amortized over 30 years. Their rent will remain the same ( but they will own and can refinance once they are able to get a mortgage)

Additionally, they have a 10k down payment to apply to the principal, I will cash flow 348.00 monthly. If this works, I would like to do 100 transaction like this. Thoughts, objections, ideas greatly appreciated

@Glidden Rivera

Why don’t you talk about what you need the money for. Talk about the deal you wish to make. Maybe we can strategize on how to get that deal locked under contract with minimal funds. Maybe you wholesale 2 or 3 deals to get quick cash. I have friends who have put down payments with their cards. Usually these guys have a good network of cash buyers, so they are in and out of a deal in less than a month.

You need a niche and a strategy. The money part, is actually the easy part.

@Frankie Betancourt

If you have that kind of a credit limit,

It seems you have been responsible with your credit. Assuming that is the case, how will you use the funds ?

Are trying to buy a 20k property or are using it as equity (down payment)?

@Corey Scruggs

Man I would sure like to read what you have to say in the topic.