All Forum Posts by: Patrick Eldridge

My wife and I get creative with our financing. We maximize sellers assist with commercial loans because there’s no limit. For example if the seller is asking 120k we’ll offer them 150k with 16% sellers assist. Thus leaving the seller with 123k at closing and us 27k towards our closing costs. It’s a way to fool the bank into financing our downpayment. We also wave inspections to sweeten the deal. Obviously don’t tell your lender either because all they need is a copy of the sales agreement and don’t need to k on anything else besides the price and sellers assist amount.

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Quote from @Jeff S.:

@Patrick Eldridge I used to load and unload trucks for Canada Dry and Dad's Root Beer in the early 70's with the hopes of becoming a driver. Company went BK with price wars between Pepsi and 7-up and Coke so ended up becoming a RE agent instead. Those cases of pop were heavy after a while, warehouse hot and sweaty at night on hot days. You are doing it right my friend, keep working and paying into social security, it will come in handy someday. Benefits? Paid insurance? Strong qualifications for financing.

My wife and I actually quit both of our jobs last august and now do real estate full time. But we couldn’t have gotten where we are without both of our jobs. She was a beer sales rep and we both made good money but it wasn’t our passion. So we sunk every dime and hard work into quitting lol

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I’d still post the 10 day notice to start the process, never take a tenants word they’ll be out at such date. Most times they are just trying to delay the process and giving whatever excuse they can to buy more time.

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Dallas, Texas

Quote from @Steve Vaughan:

Quote from @Stephen Dispensa:

For rentals there may be some additional cost savings in repurposing existing materials onsite. I managed two rehabs last year for around 12k in labor and materials each. Full paint of interior including kitchen cabinets. Resurfaced countertops instead of replacing. New hardware for cabinets. Reglazed bathtub and surround, installed new premade vanities.

This. Personally refinished at least 14 old hardwood floors, then tons of cabinets, countertops, doors, you name it. 20x return all day and no haul away or inevitable problems the retro fits always have.

Glad to see there are still some old school work in your business folks out there. Don't be afraid to do things yourself, especially when even the pvc irrigation guy charges $110/hr. Crikey!

I love buying the nice kitchen wooden cabinets off Facebook marketplace for 300$ and saving thousands

1 Vote

Quote from @Matthew Irish-Jones:

@Patrick Eldridge I hear you on that. Spent 2 years working for free building up my business.

Your price point is impressive on the turnovers, also the amount of doors in that short of a time period is awesome, congrats.

I’m running a construction business and I can’t do my own turnovers of buildings I own, with a construction company I own, for anywhere close to that.

However, i have a fully staffed PM company that handles my management, and a construction team that does all of my turnovers, and a project manager that writes up the scope and managers the project. So I rarely set foot in one of my properties and I have not worked on one in ten years.

Just another great example of how many different successful businesses strategies can all work depending on the individual and their goals.

That’s normally why I ask every investor what their goals are. Some people want doors, cash flow, equity, and some don’t want to allocate a lot of time.

Sounds like you found a great model that works for you… congrats!

Thank you! My wife and I are a great team and motivated! Real estate has become a passion of ours. We find a secure properties together and she does all of the managing herself, while I do all of the construction. our goal is to eventually have a construction team in place and just oversee them to continue doing what we started but at a larger scale.

1 Vote

Quote from @Carlos Ptriawan:

Quote from @Patrick Eldridge:

Quote from @Lucas Dalton:

That is an awesome success story @Patrick Eldridge It’s a great counterpoint to the people saying contract everything out, hire people, systematize, scale, etc. Thirty-two doors in two years is a result that cannot be argued with.

It would be great to hear more about your process. Reading through the replies, it looks like you said you did some multi unit properties at some point. That makes sense, given your rate of growth. Did you start with multi units or were your initial forays single family? Which do you prefer now?

Also, can you share whether you do anything special to find your deals? Given that you’re rehabbing more than a house each month and doing most of your own labor, you must have come up with some pretty efficient techniques for identifying distressed properties that are in your “buy box.”

Thank you it was a lot of work but my wife and I were determined to quit our jobs. We’ve only done multi units because our area sfh do not make anymore money than a 1-2 bedroom unit. We actually started out with a turn key property and quickly changed our method. We found it was quicker to grow doing value adds vs turn key. It left us with more money to buy the next. We’ve also gotten creative with our financing. For example if someone is asking 120k we’ll offer them 150k with 16% sellers assist. Leaving them with 123k at closing and us 27k towards our closing. This has been a key to our growth. Being able to trick to banks into financing our 20% downpayment. There’s no cap on sellers assist with commercial loans. We’ve been able to secure distressed properties now by word of mouth. People have seen and heard we buy properties others would not and without inspections.

how do you dance with the 16% seller assist ? do you have written agreement with seller ?
Your method is awesome.

Yes a lot of times you’ll have to explain the math to the sellers through realtors but yes it’s written into the sales agreement

1 Vote

Quote from @Carlos Ptriawan:

can you please share he name of the store ? really interested...

They are all over the country. Lowes/home Depot auctions off returns by the trailer loads. We found a few in our area by seeing the same person posting doors, bathroom vanities and etc on Facebook marketplace.

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Quote from @Bud Gaffney:

@Patrick Eldridge awesome insight ! Great work.

Thank you!

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My wife and I inflate the sales price and ask for maximum sellers assist. There’s no limit on commercial loans so you’d need an llc to get one. For example if the seller is asking 120k we’d offer 150k with 16% sellers assist. This leaves the seller with 123k, 3k over their asking and us 27k towards closing costs. To sweeten the deal, we wave inspections as well. This is just an example of our last property we purchased, we obviously play with the numbers for every property we submit offers on.

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Philadelphia, Pennsylvania

Quote from @Palmer Thomas:

Quote from @Patrick Eldridge:

Congratulations! Have you noticed it picking up with more doors? We really started seeing it take off at 16.

It's actually dried up for me. I'm one of those sad schmucks who can't get a bank loan anymore due to high DTI ratio. I have some cash saved up. Maybe I can start again with some DSCR loans once rates come back down. Until then, I'm fine being a lazy bum for a while.

Sometimes you need a break lol I’m sure once your 16 doors show positive income you’ll be able to do loans again.

2 Votes

All Forum Posts by: Patrick Eldridge

Patrick Eldridge has started 3 posts and replied 45 times.

Post: Ways to finance a down payment for a seller financed deal?

Post: How to do a rehab for 8-12k per door

Post: Tenant did not pay this months rent and says vacating by end of month, breaking lease

Post: How to do a rehab for 8-12k per door

Post: How to do a rehab for 8-12k per door

Post: How to do a rehab for 8-12k per door

Post: How to do a rehab for 8-12k per door

Post: How to do a rehab for 8-12k per door

Post: Options for down payment on first rental property

Post: How to do a rehab for 8-12k per door