All Forum Posts by: Kyle Winters

I keep hearing stories on the BP podcast of people using equity in another investment property to fund down payments for other properties, but they never go into detail other than saying a ‘small, local bank’ did it for them. Can someone give insight on the granular details on how this is done? Is this just another way of doing a cash out refinance on one property to fund another?

 I have run the numbers at 10-12% and they do actually work. These areas you can get a 3/1 house for $110-130k and get section 8 rents of $1700-1780 currently. With a 5-7 year hold, rents would increase yearly and improve cash flow above what was initially calculated. I understand that a big capex expense can effect this, but I am factoring most of that into my calculations.

I would just have 1 investor per house. When would the SEC rules of syndication come into play?

I have family, friends, and colleagues in my network who I have used for private money and would look at those individuals first.

I have B/C class zip codes that bring in close to 1.5% rule for section 8 rentals. My question is on the strategy that I’m considering. I already have 7 rentals with 3 being section 8 in these areas.

I'm looking to buy rent ready SFH's with the down payment coming from private investors. I would be paying them monthly interest over a 5-7 year hold period, then look to refinance after that to get their money paid back.

I look to buy these properties below market value and will add in capex, maintenance, vacancy, and property management costs to make sure there is still a small amount of cash flow after that. 

What are some things that I may need to consider as potential risks?

I am doing my first fix and flip loan where the lender sends me draws after work is done. My question is how do new investors front the initial money to start work if the point of the rehab loan is that they don’t have their own money to do renovation? My rehab will only be $10-20k, so I do have some funds to get it going, but is this typical of hard money lenders? Do you ask contractors to be paid after work is done? I’m gonna guess that answer is no, but just wondering how this would work with a larger rehab.

I did not. They were giving me a very small HELOC that wouldn't have been beneficial. I went with a local credit union in my area and got 90% of the equity in my house to use.

I'm going to be selling 1, maybe 2, single family homes that I have some decent equity in and 1031 each. One might net me $75k to use, and the other would be around $65k. I'm looking to do my first BRRRR's as I have good property management who has access to a good contractor.

I know all the rules of a 1031 and have already found a company to do it. What are some lesser known things that I may need to watch out for or be aware of in this process?

Thank you for the great advice! 

I have an out of state rental property in Indiana that is in my personal name. I am needing to do a Quit Claim Deed to transfer it to my LLC. The form is saying that I need a notary in the county of that state. Do I just need to find a notary in that area who will notarize the document, then send it back to me? I imagine there has to be an easier way than driving 7 hours to get a notary signature for this.

I am wanting to get the opinions of others who have used Figure Lending recently. I have about $125,000 in equity in my primary residence, $85,000 in equity in my 2nd SFH rental, and about $70,000 in equity in my 1st SFH rental. I've used a HELOC from my primary residence to buy my 1st rental, but I'm trying to get capital to buy a BRRR property with cash.

I am self-employed for less than 2 years, so I can't qualify for conventional financing, so wanted to get others experiences with Figure Lending.

I am also open to any other options, I might not be thinking of. I'm looking to use only my funds for this first BRRR and would consider private funding in the future, so that I can show experience.

Thanks in advance for all answers!