All Forum Posts by: Jonathan Pflueger

@Gerald Harris

That is great advice, I plan of following that up. Thanks!

@Antoine Martel I agree with you, finding a deal in this market is not easy. I have a few leads I am pursuing right now that look promising but it's no easy thing. Thanks for the advice. 

@Marcus Wallace I will keep that in mind, thanks for the mentioning it. 

@Antoine Martel

What you are saying makes a lot of sense. So is the multi-family strategy in the Bay Area to buy super low (aka get an amazing deal) and then hold? 

The high prices for multi-family here in the Bay Area have always seemed odd to me. For an asset that is valued based off of income it seems that there is hardly any multi-family deals that will cash flow even if you are able to "value add" in some fashion. 

I guess I am really trying to figure out the game for multi-family in the bay area. Maybe it's more of a appreciation play paired with buying a super deal. 

BP Community, 

I am investigating the multi-family game and I am trying to figure out what types of investors are buying fully turn-key multi-family complex's in the Bay Area (San Jose/Santa Cruz - and surrounding cities/towns) ? I would like to know my target audience when I am rehabbing or advertising my property for sale. 

Say I buy a value add 6-plex, restore it to a prime income producing property by increasing rents or decreasing costs etc.., and then I want to sell it and realize the difference in value. Who is my target buyer?? What types of investors want a property that has no immediate upside potential? 

Thanks for any of your insights or thoughts. 

Jonathan

@Joshuah Murray

There is a lot of unknowns here, but working off the premise that this is a good deal you have quite a few options (make sure to do all of your due-diligence). 

1. Find a money guy or gal and partner with them - they bring the money, you bring the deal. 

2. Ask for a zero-interest loan for 3 years and make higher payments in lieu of the 80k down payment - make sure to have multiple exit strategies for the ballon payment, ie. refinancing ect...

3. Depending on how good the deal is, scratch the owner financing and see if a bank will finance the entire deal plus the down-payment (kind of like a blanket loan on all 8 town homes with a cash out option) - this would require a very sweet deal. 

4. Ask the seller if he is willing to take less of a down payment, you ever know if you don't ask. 

Hope that helps. I am sure someone with more experience will be able to offer more options. 

Jonathan

@Cory Nolan

I am about to the this exact same thing. My idea is to use part of the HELOC as a downpayment on a owner financed property and part of it to fix the property up, then refinance and pay off the HELOC - rinse, repeat so to say.

The most important thing I think is to find a very sound investment, something that is worth risking the equity you have in your primary residence or investment property. Even if it is a small risk, the risk is still there. 

Best of luck!!

@Shirley McLean

Many banks or credit unions will do unsecured loans, similar to a credit card in that you don't need collateral to qualify and the interest rates are not bad. Loan amounts vary between lenders so you would have to do some research. 

Otherwise a family or friend is a good option. Best of luck. 

This looks amazing, thanks for sharing. 

@Gentry B.

Check out BP Podcast: https://www.biggerpockets.com/renewsblog/2014/06/1...

This has all sorts of information and tips for finding brokers and getting references. 

Hope this helps. 

@Justin Garrett - Your deal sounds awesome Justin! Would you mind sharing a little regarding your creative financing? 

Your goal of 100 units by the time you separate is great, I would also like move in that direction before I leave active duty.