All Forum Posts by: Clay Manship

Congrats @Kurt K. !

I'm a (relative) newbie as well looking to close on my second deal soon. I went the same route you did--and went 20% down on my first. Would love to know how you raised the funds and went with 0% down.

Any advice? Would love to talk it over more.

Congrats, @Bobby Beard !

How are you financing these deals? How are you getting the equity? Future looks bright...looking forward to hearing about your deals' structure.

Hey @Trevor Lohman

I'm in the same boat--currently buying up properties using commercial loans under an LLC. Your terms sound pretty legit--you'll find about the same anywhere. I stay away from the ARM stuff, and have a 5 year fixed rate and a 20 year AM that I just continue to refinance out every 5 years.

That's what I'd recommend doing--from one young guy to another, it seems to work better for any other recipe given our investment goals. Let me know what you figure out.

Hey All-

I am looking to structure a deal. If I am looking to purchase a $500,000 property, and need to raise $125,000 for the equity component from private investors (at 75% LTV), how do I entice investors without promising them any sort of collateral? The bank will obviously have the 1st mortgage position on the subject property.

The same can be said for my residential strategy: I would like to raise $50,000 in equity from private investors to use as down payments on 7 different single family homes. How do I entice the investor to invest capital given that they will have no recourse on the property?

I know that there must be an easy answer here, and I love hearing how different people structure different deals. Please give me a detailed idea as to what you would recommend. Thanks in advance--looking forward to hearing from everyone.

Thanks @Brian Levredge

This is exactly what I am trying to do. I am a buy and hold investor who is simply looking to purchase, buy, rehab, and rent--then refi in order to pull back out my initial capital.

Would you mind sharing the name of your lender with me? I would be happy to give a referral. Feel free to message me or e-mail me: [email protected]. Thanks so much!

All-

I have read where you can only have 4 or 5 mortgages out with banks who sell their loans to Freddie/Fannie. However, I am looking to both originate conventional lending as well as refinance private notes at smaller, local credit unions that hold these notes in their portfolio, and therefore are not subject to the "limit" or 4/5 mortgages.

Is this still the case in 2014? Does anyone know of the typical lending requirements? Does anyone have a lender that they would recommend? I would love to build a relationship off of a referral and do all of my business moving forward with one dependable lender.

Thanks for all the thoughts, advice, and referrals to lenders at these smaller banks!

I mean, quite frankly it just depends on the terms and wording used within the note, so long as it is a single family home. If it is a condo, apartment, etc, the home owner's association may have some input and legal bearings that would be difficult to cross.

That being said, I can't imagine that most sellers who offer owner financing would care too much about you renting the property or not as long as YOU are held liable for the condition in which the property is left, should the loan get foreclosed upon.

I would find a way to do what you want to do, while protecting the collateral that secures the loan for the seller/lender.

Hey @Robert Anderson -

I am a recent college grad too, living in Greenwood but working in Carmel. I love real estate investing and have been working up to this point for a long time. Just closed on my first deal in October and am already addicted.

Welcome! Feel free to PM me and maybe we can hook up.

Hey @Ryan Goldfarb -

Small world, I am also a younger guy who currently works as an underwriting analyst in commercial mortgages. I am based in Indianapolis, but am working my tail off to get into the world of commercial REI--multi-family just being one of the potential targets.

Hoping to connect and bounce some ideas off of each other. I love when young REI guys like myself get together. It would take a special team of like-minded guys, but I have seen special things happen with passionate, smart, and youthful dudes. Just a matter of learning all we can and working to make it happen!

That being said, my numbers and background yield that a $500K purchase of 20 +/- unit MF is very possible. However, have to be very comfortable with the market, conditions, and being able to put a price tag on income and comps as I am assuming we are both confident in doing.

Now to find the private money--it's out there. Somewhere...

So I wanted to ask the question...

To all you REIs out there, how lowly of a neighborhood will you look to purchase a home in? Not speaking of the home's condition per se, but instead the neighborhood in which the property resides.

I am in Indianapolis, and am looking at purchasing a property that has had tenants for two years for a cash price of $15,000. That is not a typo. Rent is $535 monthly, and that yields a COC% of roughly 35%. A lot of it is the Indy market, and the neighborhood is not bad, but isn't the ghetto.

Anyways, was curious as to what you guys get yourselves into, and how "low" your neighborhood and pricing standards go. Fire away!