All Forum Posts by: Luke Tetreault

 I think this is my best option, I think if I negotiate that down to 2-3 years it really makes it worth it. Cash flow will be high enough still to justify it, keeps my cash free for other potential opportunities. 

 I like this idea the most but unfortunately neither the bank I have a relationship with nor my private lender are willing to do this. No skin in the game in the eyes of my credit union and my private lender will only be 1st Position. I guess this would be worth expanding on new relationships.

 I have the option to do either as I can handle the deal on my own, I was just curious on others opinions. Using their own capital, use bank financing, or completely zero out of pocket. Obviously I would leave some money on the table using all private money, but would free me up for other deals that may pop up? Bank financing off the bat and then a refinance 6-8 months later seems like a lot of added closing costs? I could be wrong on that, that's just where my mind goes. I guess in comparison to interest paying the private money guy it wouldn't be that terrible. But then it goes back to having cash free for other possible deals.
  I do know the property will appraise as I have already had my lender run through the deal, and confirm worse case scenario would still appraise. 

 Thank You!

I have an apartment building I am currently structuring financing on, I am going back and forth on my options. I have a private lender who is willing to lend the purchase, closings and renovations. I come out of pocket zero. Now to make the loan he has to move a few things around, so to make it worth him doing that he would like to guarantee 5 years of %. After 5 years I could cash him out and refi with a local credit union at a much better rate. It would still cash flow in the mean time, and on the cash out refi I would be able to get out all of his investment due to this being a great deal. Now my question is, would it be worth the 5 years of high interest to be able to acquire it with zero down? Or would you start actively trying to either find new private lenders, talk to different banks, etc... where maybe I have to put some money down, fund the rennovations but I could cash out as soon as I'm done and could immediately get better cash flow with a lower rate. Obviously some pros and cons here, curious what types of opinions you guys have!

 Thank You, Alecia. I agree with this as well. It's definitely not my end goal to keep flipping the way I am now. I already have some regret with a couple I have sold! 

 Thank You Jonathan, and Thank You for the advice! I think you are right in this.

My Fiancé and I will be wrapping up our 2nd year of investing part time in the next couple of months. And it seems to be getting less clear on where to head. Maybe you guys can help!

In the past two years we have completed over a dozen flips, We are holding 20 rental units self managed and 2 self managed Air BnBs. Yes we tried everything, and Yes I know now that wasn't the best play haha. We are both 28 years old with zero experience prior to getting involved, she works for the business now and I work Blue Collar in the trades. But as of the last 6 or so months I seem to be losing direction. Where to go from here, how do we truly grow. We haven't found that one thing that has really worked great to catch a ride on the momentum. Flips have done good not great, Air Bnbs are going good not great, and rentals all were brrrr'd perfectly but like most cash flow just enough to pay the bills and cover expenses. I feel a loss of direction and that makes it really hard for me to focus and build.

Do we keep at building a portfolio of small multi family (very abundant in my market, very rare to find anything above a triplex for sale), with plans of selling the portfolio and 1031'ing into larger properties? Do we focus on flipping, (currently we have actually been trying to do this, but we physically can't find enough contractors in our smaller market <100K population to do that much work). Do we branch out of our area and try to do bigger deals now? These are just ideas I have been asking myself.

I think if I could just pinpoint a direction I am confident in, it would make things so much easier to focus and really strive toward. When looking at deals, learning, getting better and thinking smarter as an investor. Right now it feels like we are aimlessly investing, and it makes it hard to see the end goal and even harder to see how to get there.   

I know there's a lot of details missing to actually give an accurate answer. But would love to hear some of your Advice and / or Experience anyone has had as they've gone down this investing journey! Thank You!
 

Hey everyone, so I’ve been investing in smaller duplexes, triplexes for the last year and half. No prior experience investing experience, have always just worked a regular w-2 job as a welder. Not high earning 90-120k. 27 years old. 700 credit score. 

I have been really trying to push into bigger deals, I have finally come across a 30-Unit in my area off market, that is a great value add opportunity. I’ve been negotiating seller finance options for the past 3 months, trying anyway to get this closed. Knowing that would be my most realistic way to get a break on such a large purchase price. The sellers came back and shut it down, will not accept anything but a full payment. 

Talking with my local credit unions, they don't look at me like a serious buyer. Not for somthing of this size, I wasn’t taken serious it felt like. The numbers work, but it seems the issue was me as a borrower. I don’t have the money in the bank like they’d like to see, but I have built relationships with investors who would fund everything I would need to get this closed plus renovations. There was pushback from lenders because “I wouldn’t have any skin in the game” if I used investors. I really don’t know where to go from here. I don’t want to just throw in the towel on the deal due to funding. Because I feel like this is one that could take me to the next level. I do understand their reservations, but there has just got to be a way.

Anyone have any input on this situation?How you pulled off your first big deal when you were starting out? Thank you!

Thank you everybody, these have been extremely helpful!