All Forum Posts by: Murray Reginald
Murray Reginald has started 29 posts and replied 74 times.
Post: Stategies to Purchase Real Estate/Commercial Real Estate
- Investor
- Posts 75
- Votes 15
@Wale Lawal thanks for the advice I am also considering flips which would work better for the credit cards!!!
Post: Looking for a Recommended Wholesaler
- Investor
- Posts 75
- Votes 15
Hi BP,
Does anyone have a great wholesaler in the Houston area that you could recommend? someone that you've worked with and will continue to work with because they are giving you GREAT DEALS with no padding (i.e. A lot of meat on the bone)? I realize I will need to do my own due dillegence, I don't want to play games, I'm positoned to purchase properties!!!
Post: Stategies to Purchase Real Estate/Commercial Real Estate
- Investor
- Posts 75
- Votes 15
Post: Stategies to Purchase Real Estate/Commercial Real Estate
- Investor
- Posts 75
- Votes 15
Quote from @Lateefah Mathews: Thanks I will be in touch soon!!!
Quote from @Murray Reginald:
Is it better to use a DSCR or a Bridge loan? If I use a Bridge Loan using your example would I pay 20 % on the $160K? which would be $34K or would I have to pay 20% on the $200K which would be $40K however, doing a cash out refinance with the forced appreciation, I should be able to pay the credit card debt off correct? Why would I not be able to pay all of it off?
Using a DSCR loan or a Bridge loan depends on the project, but Bridge loans generally have higher rates. You would pay 20% on the loan amount, so if you borrowed $160K, the fee would be $32K, not $40K.
Yes, with the cash-out refi after the rehab, you should be able to pay off the business credit debt if the refi covers all your costs.
Post: Stategies to Purchase Real Estate/Commercial Real Estate
- Investor
- Posts 75
- Votes 15
Quote from @Chris Seveney: Thanks
Quote from @Murray Reginald:
Hello BP,
I have a strategy to purchase properties/Storage Facility but I need your help, I've been leveraging my personal credit to get funding to invest into real estate, I've obtained 175K in funding on my business credit side by doing this, so I have plenty of down payments for real estate, my plan is to purchase off market deals from a whoelsaler, by doing a bridge/DCSR or even conventional loan, I plan to rehab the property, put a tenant in the property and do a cash out refinance (BRRRR) strategy, but I'm stuck because how will I pay the business credit cards off after liquidating them? The tenant will service the debt, I would like to have a PM, along with CapEx and any other expense, I planned to get at least a $200 cash flow or hopefully more but I still have the credits card debt to pay, how will I get the money to pay the debt? When I do a cash out refinance?
Most likely you wont be able to pay all of it off. Lets use an example, purchase $200k, bridge debt lender gives you $160k to purchase and $50k for renovation. ARV is $300k and you are in it for $210. If you go to hold it a DSCR will give you $225k so you pay back the $210k but the $40k in debt will be down to $25k..
Post: Stategies to Purchase Real Estate/Commercial Real Estate
- Investor
- Posts 75
- Votes 15
Post: Stategies to Purchase Real Estate/Commercial Real Estate
- Investor
- Posts 75
- Votes 15
Hello BP,
I have a strategy to purchase properties/Storage Facility but I need your help, I've been leveraging my personal credit to get funding to invest into real estate, I've obtained 175K in funding on my business credit side by doing this, so I have plenty of down payments for real estate, my plan is to purchase off market deals from a whoelsaler, by doing a bridge/DCSR or even conventional loan, I plan to rehab the property, put a tenant in the property and do a cash out refinance (BRRRR) strategy, but I'm stuck because how will I pay the business credit cards off after liquidating them? The tenant will service the debt, I would like to have a PM, along with CapEx and any other expense, I planned to get at least a $200 cash flow or hopefully more but I still have the credits card debt to pay, how will I get the money to pay the debt? When I do a cash out refinance?
Post: Has anyone taken Bree Hartman’s Self-Storage School Course?
- Investor
- Posts 75
- Votes 15
Thanks that makes sense!!!
Thanks Greg I will reach out to a lender, I am currently working with a business planner to get a business plan and present this to the lender. You stated 3-5% in a lot of places is this just for vacancy's only?
I'm just doing my due diligence, I am also linking up with my local SSA to obtain education on operations/property management, I'm currently looking into a SBA loan as well, I live in Houston Texas and would like something that is close proximity. Do you own a Self Storage?