All Forum Posts by: Jaspreet Baveja

@Anik Singal - you should talk to @Scott Krone @ CODA Management. Impressive operation and well connected in SS space across the US. Best of luck!

@Lesley Resnick - perhaps add ATMs to your research list too? I know nothing about it, but have heard it's been a source of consistent cash flow from many before...

Would love to see your findings!

I rely on Private Money Lending as my source of consistent TRULY passive cash flow. Securitized by an asset and generate monthly interest income!

@Adam Budgin - As a lender, I want to make sure my investment is secured as a 1st Position Lien against the asset. However, if you're able to negotiate an unsecured loan / line of credit through Private Lenders you've used for a while, perhaps for a higher return due to a higher risk factor, you could technically omit the fact that it's a loan, as it's already been funded into your account, "seasoned" and ready to deploy as needed... ? Just a thought!

@Patrick Sears - Yeap, all depends on the lender's comfort level, with the strategy, valuation, and the renter as well. I've seen seller financed deals partially sold /refinanced as well, so, definitely doable. Good Luck!

@Nicholas Zakas - I hope your health improves! As far as Private Lending goes, I did my first loan (of the 100+ so far) out of state, and leveraged a local (to the property) Lawyer drafted docs, Title Company, BPO, and the borrower had YEARS of experience in that market. I would recommend lending to an entity that's been around for a long time, get a Personal Guarantee from the Principals of the entity (if more than 1), check out the local County's Recorder office for Mortgages and Release that have been recorded over the years to check for experience, HUDs of purchase and sale of the same asset to check out experience, maybe even reach out to past lenders they've used (listed on HUD), ask for references that match those HUDs, and you're on your way! I might make a post that goes into more detail later, but that should give you a start and feel free to reach out (I'm in East Bay) and we can chat! Beat of luck!

@Brett Eskew - Welcome and good for you for thinking outside the box this early. I don't imagine any regular bank will take that chance. A strong credit history, a couple of years of solid employment, and a co-signer are all great things to have for them to consider it. You might have some luck if you take your father in as a co-signer on the loan. Local Community based Credit Unions, some even University specific might be better bets! You can bring your father in as a lender on the deal, but won't work if you're getting a bank loan, and you'd just pay him a set monthly payment. (Google Loan Terms and that should help, Rate, Duration, Payment Schedule, Amortization etc). You could bring him in as an equity stake, and he would just get dividends when you make more money than you owe. You can set it up HOWEVER you want, he's family! Good luck bro! P.S. - Some Private Lenders or Hard Money guys might even look at it if your father buys it in his name or is a co-applicant! Only works best in short term scenarios due to high rates, but something to consider.

@Josh Jackson - You're always able to give it a shot, but look at it from risk assessment point of view. The more experienced and proven your business model is, detailed business plan, and a certified financial history to back it all up, the less risky you are to lend to and easier to finance you at a lower rate.... As a private lender, those are definitely things I consider! I ONLY lend to Entities and not to people personally. 

@Josh Jackson - I would highly recommend leveraging your network and relationships to get Private Money to get started and seasoned, and then move over to the Commercial Lending / Portfolio Loans with more properties under your belt. It will help you gauge your cash flow and prove your business plan to the lender as well. Best of luck!

@John Matthew Johnston - I don't know what the Cash on Cash or IRR returns look like for you (taking into account the equity buildup), but, if you could borrow against these properties and keep buying more cash flowing assets, or even do Private Lending with that same cash to generate 10% returns, you'd still be earning the 6% gap (borrow at 4% and earn 10%) without any maintenance or repairs or prop taxes etc... Just my $0.02