All Forum Posts by: Kyle Penland

I have a portfolio I am going to purchase.  I have lending already...They are willing to lend for 20 years.  Is there any companies out there willing to lend 30 years?  Purchase price is 174k.  Properties are in TN.  Maybe I posted this in the wrong place?  Not sure...If you can do this let me know.  I am not looking for hard money.

When you do a master lease on properties who covers the insurance? In other words do I add the properties to my insurance group and have him as the payee?

I'm looking at a 32 unit apt complex that only has 7 units rented. It's all about your confidence in filling it up and knowing what market rents are. I'm betting market rents are lower in this property and sounds like you have some owners who don't know what they are doing.

I know nothing about Dallas, but you can find a property in any location. You have to dig. Buying off of the mls in a sellers market to flip won't do it. I've had success with calling the city for their problem children, buying properties that are fsbo and mailing owners. Good luck!

Ditto to what JScott Said...Most people and I'm not saying you think flipping is a lot like a TV Show... Owner shows up screams at everyone and goes on their way.  That will work with an experienced crew, but when you are doing this without that luxury, you have to be there.  Pay when the job is done, and I only pay when it is done right!  You don't have tools, then you are not working at my property.  People who show up to work bring their tools.  You are learning though and that is what counts.  Build your team and it will pay dividends...

Hey Steve,

Congrats, The first is the hardest!  Your plan sounds good, but as Joe said, I wouldn't lend any money.  I haven't ever wanted to wholesale because I had the cash to do what I needed to do and my deals I work way to hard to get to make 5-10k on them.  If you are flipper, then stick with that and build up your record and the money will FLOW as long as you are making wise and sound decisions.  2k isn't hard to get to as long as you have your capital to fund you.  I built up 2k in 6 months and hopefully getting ready to double that!  Best of luck to you and feel free to reach out to me if you have any questions.

@Steve Vaughan Thanks!  Yes they are all currently rented and he has proof of payments recieved...He is just too busy to be the rent collector, maintenance guy, and handle showings and leasing the units.  I'm surprised...his father was one of the biggest property owners in our town at one time...Like you said, it isn't for everyone.

@Ashley St. Gelais Thanks for the tips...This loan is assumable...His brother assumed the loan on 4 of his properties...Didn't buy these because he didn't want to bite off more than he can chew...Of course he took the better properties, but these are still pretty cash flow friendly.  I have no retirement...I am a 100% commission based employee.  I'll PM you shortly.  

a local investor with 5 units wants to sell...He has them financed with my local bank.  They bank DOES NOT want to allow me to assume the loan.  not sure why, I have 6 loans with them currently and a line of credit.  Anyway, I have all my cash tied up in a property I am renovating...I know he would be open to a master lease for what he owes the bank and in 5 years I could get them with no money down...Any other suggestions?  I want to make sure I make the right decision.  He has maybe around 40k of equity in them.  He has had them for 3 years.  I believe they are financed on a 15 year note...Just looking for suggestions.

Thanks!

I have multiple clients who ask this question when interviewing potential employees..."what is your biggest failure and are you happy with it?"  Great question...I love failures because they teach you what not to do in the future.  Hopefully you didn't lose any money here only time.  Great story!  Perhaps in the future set up "showing days" and show the property every Thursday or every Saturday.  I think personally by not being there, you are not allowing yourself the opportunity to actually sale the property.

I'm reviewing a 32 unit apt complex I'm considering...I think I can get it for 225k and it will need 175-190k in rehab...I haven't toured all of the units but reviewed several.  7 of the units are rented, doubtful they are all paying.  Looking for a 18 month interest only loan of 400k to rehab the property and get it rented.  Haven't decided if I want to sell the property once it is complete but am thinking I would like to hold on to it for at least 3 years to show a great history and then sell.  This is a class D neighborhood.  I own a SF a block away and it is rented currently for 575 a month.  These units should rent for 350 -375 once fully rehabbed. Open to partnerships as well.