All Forum Posts by: Preston Quinn

Well. 10 years later I google almost the exact question and I find this. Hahaha. I guess that answers my question. 

@Andre Xavier

Did you end up buying this property?

@Mindy Jensen

Motocross!!!

@Ashley Keeler

I closed 4 brrrrs in my first year by using cash, helocs and Blocs. My bank offers a cool loan product and suggested I start using it to speed my process up. They are a small local bank that specializes in commercial (properties held inside an entity) lending. This is what they suggested to me. I can purchase a property with 20% down of purchase price, they will also finance the renovations (like a construction loan), interest only upfront and after the house has a lease, they will modify the loan to 75% of ARV with no seasoning period. So, they're basically telling me that my sweat equity will cover the down payment as long as I keep my all in cost under 75%. They do want to see a lease in place and they ask that I am honest and not pull out cash that I didn't put in. So if I am all in for 55% of the ARV they want me to put them in a good position on the property. I am personally signing for these loans and they let the income of the property offset the DTI hurdle. At the end when I refinance out they're cool with me getting my initial 20% down payment back to keep moving forward.

So in my position I am planning on doing this with my lines of credit, but instead of paying all cash upfront, I am going to pay 20% down so I can do 3-4 properties simultaneously and scale much faster. I do respect the comments earlier about doing 1 at a time until you have experience. As it will minimize the sting when you make mistakes. I am a class A contractor and still make mistakes that cost 1000s.

I have an extremely good relationship with this bank. Find a small local bank that you can do this with. If you have $140k and buying properties for $30-40k you can buy a lot of houses with that 140k at 20% down if you can find a lender with this type product.

@Nicholas Weckstein

I would have to try to work this to my advantage somehow.

@Nicholas Weckstein

Hmmm. Ask the seller to sell at appraisal price? Worth a shot.

@Dale Nesmith

I didn’t answer your question. Sorry. I didn’t negotiate the price. He paid $18k for it. He wanted to make $10k (about $1k in closing on cash deals, he closes on all his properties and then lists them for sale on his website) and I was perfectly fine with him making $10k. I knew the backside was going to be good.

@Dale Nesmith

The wholesaler is a friend of mine. He brought me the deal because I told him what I was looking for. I was specific with what I wanted. He knew I was good for my word. He found it and brought it to me.

@Patrick Nolan

I did pint the roof. That’s one regret I have on the property. I should’ve torn the roof off and replaced it with shingles.

@Ryan Bartlett

Currently yes. When the city sees the renovation I’m sure it’ll double. But the numbers still work if/when that happens.