All Forum Posts by: Drew Castleberry

Sounds fine to me. In my previous lease agreement, I actually named the website that was to be used. "Tenant agrees to pay rent through WEBSITE electronically by the (DATE) of each month. Electronic payments incur an additional $$$ fee. If the tenant wishes not to utilize electronic payments, then tenants must deposit rent by the (DATE) at BANK into ACCOUNT, etc"

I don't think it needs to be formal, just clear and precise.

Since you bank with Wells Fargo look into getting an unsecured personal line of credit or depending upon how much you have in savings, a secured line of credit. I'm in the process of getting a secured line of credit based off of my savings account. The line of credit is up to 95% of what I have in savings with the rate at 7-8% with interest only payments.

The only requirement is that my savings account balance can't go down and if it does, so does my limit on the line of credit. Also if my savings account increases, I have to request that the credit limit be increased as well.

Thiis a great alternative to hard money where you can pay cash to buy a house, and luckily I have a lender that doesn't require any seasoning on cash purchase for refinancing.

@Lee Huffman

Are you looking for specifically a HML? Lima One kinda falls between a HML and a portfolio lender. The better the DSCR the better rate you'll get from them, but I think they start at 1.2. Personally I don't look at deals that are less than 1.4. But I think they offer discounts for anything thats 1.5 and higher if I remember my last phone conversation with Matt correctly, just be sure to ask.

@Lee Huffman

I've beenin contact with Matt Lineberger who's based out of Atlanta. The owner actually lives here in Greenville and is apparently involved with the Upstate CREI.

Try LimaOne Capital. I've been communicating with them extensively and as soon as I find a deal I'll be using them. They're based out of Greenville, SC but work in NC.

I have gas tankless at my house and I love it! So much better than a traditional water heater. My gas bill is lower than it was at my last house, which had gas but had a tank in my garage. Plus I don't have to hear the dang thing running all the time either.

I don't know about your area, but if the cost isn't that much of a difference to go tankless and the lifespan is relatively the same, I'd go tankless.

There are some loans available for long term without a balloon but are a bit harder to come by. The majority I've seen are amortized for 15-20 years, but I know a lender that can do a commercial loan starting amortized for 30 years with a competitive rate, but it was for a portfolio of SFR, not an apartment complex. If you want more info and the POC send me a private message.

I'm sure others will pitch in that have more experience in the commercial world than myself.

@Dave VanDommelen

@Brian Knox

Count me in. I got it circled on the calendar.

I don't know about any podcasts, but there are TONS of posts in the forum discussing the pros and cons. Just do a search and start doing some reading, it's what I did. Then if you have any specific questions post those, there are a lot of seasoned investors to offer input on turn keys, and quite a few providers as well.

The return on the properties will actually be higher because I'm leveraging them with no money out of pocket. If my lender will be able to work the deal, I'll even be able to roll the closing costs into the loan.

I've analyzed both separately and together. It's a mediocre deal for the properties by themselves, but as I said, I'd only be purchasing these to go with a package with the notes, to establish the relationship with the seller for more properties. He's already offered to sell his entire company/portfolio and we are starting small to establish the relationship.

I think if I can make it work, I'd the sell the properties later and hold the notes, or vice versa, whichever would make more sense long term.

Here's the info on the notes.

Note 1: Balance $17,849, Purchase Price $12,494, Asset Value, $50,568, Rate 9%, Payment $456, Payments Left 45

Note 2: Balance $56,272, Purchase Price $39,390, Asset Value $60k, Rate 12%, Payment $600, Payments Left 275

Note 3: Balance $46,340, Purchase Price $32,438, Asset Value $50k, Rate 12%, Payment $523, Payments Left 219

Note 4: Balance $63,698, Purchase Price $44,589, Asset Value $75k, Rate 10%, Payment $613, Payments Left 239