All Forum Posts by: Bob Green

Hello Quentin,

I started by attending local real estate meet up groups where I met and networked with investors who shared their knowledge. At these meetings I also met wholesalers, and multiple real estate brokers who concentrate on investment real estate only in specific markets.  Through these sources I learned about the different markets and started to by foreclosed and distressed real estate through them.  I was fortunate enough to be introduced to one of the largest foreclosure brokers in Illinois and have acquired several properties through this firm too.  I have been using the brrrr method for years and have been recycling the same funds for the past 10+ years.   My network of real estate brokers, wholesalers, contractors and various lending sources have mostly remained the same.  I believe in maintaining loyal business relationships.

Currently I am acquiring buy/hold properties in southwest suburbs of Cook County(section 8) and in Will County.  I am looking to invest outside of Illinois - specifically in Indianapolis.  Before investing in this market I will be attending several real estate meet up groups in this area and align myself with solid professionals who live, work and invest in this market. Similar to the way I started in the Chicago market.  BP is a great source for building valuable relationships with real estate professionals in other markets as well.

Chris,

I am a HML and there is a seasoning period with most funds.

Glad if you can help - that's great.  I was only putting in my 2 cents of 22 years in the business as both an investor and lender.

Chris,

Sure unsecured funds can be thrown in the mix if you are already approved with HML, but when it comes to qualifying for a loan, the unsecured funds will be required to be seasoned for 30+ days and in most cases 60+ days. Most lenders will not count unsecured funds towards liquidity, therefore the funds need to be seasoned in the bank so large deposit will not show up on bank statement. If it does, lender will ask for a paper trail and source from where the funds originated. If found to be from unsecured funds will not be counted.

Yes - a LLC is a good idea. You can take it a step further and create a series llc too, and put your primary home into a trust.

Sam,

The key to scaling is acquiring foreclosed or distressed real estate, rehab, place tenant and refinance with a non- -traditional lender that requires little or no value seasoning so that you can refinance cash based on fair market value ASAP.  Hopefully, the cash out proceeds is enough to get back your original down payment and rehab funds. With this strategy you can recycle to same funds into the next project. This is the key strategy to growing a large real estate portfolio. Ive been recycling the same funds for 10+ years.  Its easier said than done but if you align yourself with the right real estate professional you can make this happen. Working with real estate professional that understand the market, and contractors who are fair, reliable and fast and a lender that has the right programs will help you achieve your goals.  Good luck!

If you are going to scale, the money from the HELOC will eventually run out if you are buying property at retail pricing. My suggestion is to refinance into a blanket loan and pay some of the HELOC back- (I mentioned "some" because it sounds like you purchased property at retail pricing, therefore 25% or more will remain in the property, as 75% loan to value is most likely the max loan amount the lender will offer depending on how strong the cash flow and your credit). For future investments, look to acquire foreclosed properties to either fix n flip or buy/hold. The profit from the fix n flip could make the HELOC whole again, and now you own additional real estate(cash flow and equity) with no money out of pocket as the HELOC is paid back. Another suggestion is to acquire foreclosed property as a buy/hold. Acquire, rehab, place tenant, refinance and pay back the in HELOC assuming there is a strong enough equity position. With this strategy, you are scaling with little or no money out of pocket as the HELOC is paid back. And, the risk is less because your HELOC funds are made whole on the refinance, and in the event of unforeseen circumstances where you need cash for maintenance, etc., you have the HELOC funds as reserves to fall back on.

Hello Jonathan,

Are the MFs turn-key or do they require rehab?  

No problem my friend.

In my experience as a investor, either a LLC, Corp or personal name is fine, but either way most will expect the investor to sign a personal guarantee.

Hello Matt,

Do you and wife have full-time jobs?  How does your current liquidity look?  Assuming that you have a full-time job and liquidity is ok, I would leverage available funds via different financing options to continue to grow portfolio and If you do not depend on the cash flow to pay your monthly bills, my advice is to pay down the mortgage ASAP.