All Forum Posts by: Marcus Andrews

Hello Everyone,

I am new to investing and have yet to purchase a property. That being said I have been working like crazy to find a deal. I was very interested in a fourplex that had great numbers but after going through it I realized it needed a lot of work and was only a triplex anyways (fourth unit was in basement with no windows!!!)

Anyways, I'm interested in a single family that is vacant now but is in nice shape. I've ran just about every number I could have and this property is at a great price and generates some nice cash flow (COC of 25% and CAP of 12%). I am 18 years old so I have absolutely no credit or money but I can get the downpayment from a private money source. The owners said they would be interested in doing a land contract but would not let me sign a note to do direct seller financing. I've heard to stay away from land contracts because of the power it gives to the seller but my realtor said that there would be a deed written up with my name on it and would sit in escrow with the bank or title company. I'm not sure what the sellers are going to want for an interest rate or how long until the balloon but I am going to talk to the bank to find out about the details of refinancing this place with the them in x years (I'm assuming the seller will want money in 3 years) once I can show that I have been making payments and I hopefully will have good credit at that time. This sounds a lot more safe than what I've been hearing but I thought I would ask and get some input. Thanks a lot guys!

Marcus

So this may be a dumb question but I'm going to ask it anyways....

I am new to investing and have done research for the past couple years. I have decided to make the jump this year. I have been looking at a few properties and am in the process of possibly putting in some offers. I want to go with private money and I can raise the money for a down payment from 2 (possibly 1) investor. 

My question is how do I pay them back. I see people talking about giving them 10% and paying them back in 12 months but I can't generate that type of cashflow from one property. I get that you can do that in a flip and pay them back but I don't see it in a buy and hold.

I also am aware of doing a cash out refi, but 1) I thought you had to have the property for a year before doing a cash out?? and 2) I won't have enough equity in the property to pay that investor off. Maybe I'm going about this wrong but that is exactly why I wanted to ask people that have done it.

Thanks for everything guys,

Marcus

Hello everyone! My name is Marcus and I am located in the Upper Peninsula of Michigan. I have been researching investing in real estate for about two years now and have finally decided to make the jump. I am looking to build a portfolio large enough to allow me to travel and be financially independent. I do not own any properties but I am in the process of putting in an offer on a four unit multifamily that looks extremely promising. I'm excited to be a part of this site and have you guys along with me for my journey. I almost forgot to mention that I'm currently 18 years old in my freshman year of college, but that isn't going to stop me, just give me more time to build an empire!

Thanks again,

Marcus