All Forum Posts by: Matthew Gardner

Have the option to sell a portion of it and try you hard at the last one for building? Reduce downside risk and increase your overall revenue.

Could be an interesting thought to sell 6-9 of them, and keep 1-4. As mentioned before, can be a lot of risk and downfalls when attempting to build

Hello BP,

I have been investing in RE for about 2.5 years now. I am running out of liquid cash to keep the ball rolling. Some family members have expressed interest in investing as well. If they want to essentially become the Private Lenders for our projects. We are wondering, what is the best way to set up the organization? Do they set up an LLC and business bank account, and everything is handled through there?

Appreciate the insight/experience people may have in this area!

- Matt

Hello BP!

I am in search of an asset based lender that primarily looks at rental income for their basis of value. I have tracked down a 10 unit off-market portfolio that is primarily a great cash flowing asset. There are too many unknowns in the value of the properties and I’m sure it will be a significant amount of time and money to get an appraisal on each property. Would love to hear everyone’s recommendations!

Thanks for your insight!

Matt

Investment Info:

Large multi-family (5+ units) buy & hold investment in Canton.

Purchase price: $171,000
Cash invested: $171,000

6 Unit property fully stabilized. Purchased from wholesaler. Used funds from 1031 exchange for the required cash purchase. Refinancing property to pull out equity and look for more deals.

What made you interested in investing in this type of deal?

The amount of cashflow, and the refinance aspect to be able to pull money out.

How did you find this deal and how did you negotiate it?

Found through wholesaler, price was firm as there was a lot of other interest.

How did you finance this deal?

1031 Exchange.

How did you add value to the deal?

Purchased right.

What was the outcome?

Currently holding property for cashflow.

Lessons learned? Challenges?

First deal with wholesaler.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Bridge Title and Escrow

- I haven’t found many good options with 20% down, higher interest rates (>5%). Purchase price just under 1.2 million. I’m also having a slightly harder time finding lending because I am currently in a 1099 position just started 4 months ago. Lenders like to see at least 2 years of 1099 income to verify everything. 

Hello BP!

I’m wondering if anyone uses creative financing or what financing options people have been using for beachfront properties throughout Florida? The traditional options I’ve been finding have been around 30% down. I was looking for something closer to 20% to use some funds for renovation/improvement. Has anyone had luck with credit unions or other similar financing options?

Appreciated as always!!

- Matt

@Kevin Romines

Both properties are currently stabilized. 

First 6 unit: purchase price 290k. Appraised Value: 325k. Rents for $4000 (I live in one of the units so collecting 3200 at the moment). Mortgage+taxes+insurance is $2500. 

Second 6 Unit: listed for 170k with rents at $3200. The wholesaler typically will only work with cash buyers.

I may be misinformed, but I always had the notion that lenders typically will refinance a loan after a seasoning period of 6-12 months. The lender I closed the first 6 unit with was only willing to loan on the lesser of the Purchase price or appraised value.

I was hoping to get as much money back out of these properties as I could to use for purchasing future properties. Thanks for your input!!

Hello BP!

I am curious if anyone works with lenders that lend immediately based on appraised values of properties. I recently purchased a fully stabilized property, 35k under appraised value. At the same time I am looking to buy a wholesale deal (cash) with 1031 money. I was hoping to get both financed through a lender that will lend based on appraisal values of the properties!

If anyone has any contacts I would be very grateful to hear!

Thank you for you time and effort!

Matthew Gardner

Investment Info:

Single-family residence buy & hold investment in Toledo.

Purchase price: $30,000
Cash invested: $46,000
Sale price: $120,000

BRRRR property. Mostly cosmetic rehab. Estimated 5-6 week rehab.

**Update. Flip took longer than expected due to COVID issues. Took approximately 3 months to complete. Was targeting price of around 80-90k for ARV. Ended up getting a good offer on property just as a lease was signed. Decided to sell and use for 1031 exchange to acquire bigger property with another property sold at same time.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Toledo.

Purchase price: $88,000
Cash invested: $27,000
Sale price: $140,000

Good cash flow 4 unit property. Sold at higher price to put into 1031 exchange for bigger property.