All Forum Posts by: Qwesi McCray

@Joe Villeneuve Thanks for your wealth of knowledge. I'm going to implement this "perfect system." It's too simple not to work. Looking for private lenders right now as a matter of fact. I'll keep you posted. 

Just disappointed in myself right now. I'm thinking of the private unsecured loans I received in the past and all the things I did with the money. Should've been thinking long term, instead of the instant gratification of buying frivolous items.
I'll do better this time. I'll make sure my 4 and 2-year-old know better as well. A life lesson I wish was passed on to me. Thank you infinitely.  

@Mike H.! Thanks for the thorough response. I get it now.

@Travis Sperr you are the greatest.

I have a lot to learn obviously. I love that Biggerpockets gives you a platform to ask questions like mine and get answers in minutes. Love this place.

Thanks a lot @Travis Sperr.

What about this... Last week I found a cash flowing 8 unit in Pennsylvania for $120K. I'd need a commercial loan and that requires 25% down, but I only have 15%. Assuming I have no friends or family to help make the down payment I could potentially buy the property using a private lender then refinance the loan with a portfolio, right? I get the hard money loan rates will cost me upfront, but the cash flow would pay for that until I refi.

Quick back story, my wife and I plan to start investing come August when we start our new gigs. So this is not something I'd try to pull off tomorrow. Just looking for creative ideas for the future with hard money/private lenders I've found online.  

Thanks

@Shannon K. and @Karen thanks a bunch. 

The scenario above was hypothetical. I'm just exploring possible creative financing for the future. I've noticed many listings where sellers want "cash only buyers" for turnkey cash flowing multi-family properties. I've found private money/hard money lenders who say they'd carry my loan for 6-12 months until I'm able to refi. I have the credit to get a conventional loan now (credit score about 720). Refinancing shouldn't be a problem for me when the time comes. I plan to start investing once my wife and I start our new jobs in August. But i'd hate to miss out on a great deal, because I don't have enough money for an all cash deal. No cash-out needed, just refi to get the hard money loan paid off. I've found portfolio lenders who will refi with no seasoning.

If you have any other ideas on how to work out an all cash deal, without all the cash on hand, please share. Thanks again.

@Tim Porsche, thanks for the reply.

The example was hypothetical. I'm just interested to know if hard money can be considered cash in a situation like this. Would a seller be okay with this? From what I gather sellers want to do cash deals, because they want their money ASAP. Some asset lenders advertise financing loans in 4-5 days, without the hassles of the average conventional loan. 

I'm a newbie so bare with me here. Any help would be greatly appreciated. Thanks in advance.

Example:

Seller wants $100k cash for property. We agree on a deal and I put down $10K as earnest money. After a thorough inspection and due diligence I agree to buy the property and get a hard money loan for $90K to pay the balance.

Is this possible? 

@Joe Villeneuve you're providing some great insight here. Thanks for sharing.

You mentioned in a prior post:

1 - Flip 1 house and bank the profits.
Assume:Cost $80,000; Flip $120,000; Profit $40,000/property
2 - Seed money from first flip comes right back and you repeat step #1
3 - Repeat step #2, but also take the combined profits to fund a 2nd simultaneous flip
4 - Repeat step #3 (with 2 properties) but add the two profits together to fund a 3rd simultaneous flip

My question is how are you cash-out refinancing all of these properties? Eventually you'll have dozens. Conventional banks will allow only so many RE loans. Are you using a portfolio lender? Are you eventually selling and trading up? Any information about how you are able to cash-out refi so many properties would be terrific. Thanks again.