All Forum Posts by: Ryan Herald

Thank you Jay Hinrichs. The net is 20k a month (around 250 a property/unit). That is with what shoild be a gross over estimation on costs for vacancy, repair, and taxes/insurace. I'll try to break it down a little more when I get home tonight.

Hi @Justin Prevatte, I did not think of that. I would be willing, but all of those properties have a bank loan on them. If you have any ideas, I am more than willing to look at ways to do this though. I will likely be able to raise a large portion of the funds I need from family and acquaintances.

@Jay Hindrichs, I can see why you think that. I think the price is from a combination of things. I think the large number of apartments units is helping lower the price for one, and another help is that this is applachia where prices and living in general is cheaper.

"But realize your only way out is to collect rents for a very long time to get your money back. these type of low value asset portfolios have little hope of selling for cash.. you could then piece meal off the properties until you get cash.. but I suspect there would be no equity to get."

I wouldn't say that these properties are low value, and I didn't intend to ever imply such. These are largely B properties that can be resold. They are located in a small town, so they may not be sold as quickly as larger areas like Knoxville (that I am near), but it is possible.

The current owner is someone who has worked with my family before (donated to our campaigns) and that is how I have come across this. These properties are actually not listed and have not been offered to anyone else.

And yes, the properties are free of any liens.

I wouldn't have a problem with it, but it isn't up to me to give. I can talk to the seller and see what he has to say about this. 

The properties I am looking at are a combination of: a 26 unit apartment complex, a 16 unit multiplex, and then a mixture of houses and duplexes. The multi units are units meant to be multi-units, not that weird lets split a house 6 ways places.

For family, I have been thinking to offer a ten year loan at 10% interest (even if all 300k was lended at this rate, it would be only 4k a month for me while giving a return of 175k). Those are just thoughts I have had though.

Thanks Jay Hinrichs. I am up to 16 properties now and have a fairly good idea of some aspects of the lending world, but I was hoping there may be something out there that I did not know about. I am hoping that a combination of loans from friends and family may work (along with a few unsecured loans).

Anyway, I did not think about posting on here to find a partner to work with (I just assumed that would be against BP rules). Thanks for the idea.

I have been given an opportunity to purchase a portfolio of 85 properties that each net ~$250 a month (if 80 are rented, 20k in net a month). The seller who is looking to retire is willing to finance the whole portfolio for 4% interest with 10% down (That comes to right at 300k).

Being new to this, I have enough saved to cover a reserve. Are there Hard Money lenders who will lend for a secondary lien? Or does anyone have any strategies on how to approach this. I have a few ideas, but I would appreciate any advice I can get before I post it.

TLDR: I have the cash flow to afford a loan to cover the DP, but I do not know who to go to get it.

As a 23 year old also in the teaching profession with little money but a lot of time also (but in America), I got into it by using every type of financing I could find. If you're knowledgeable of what you are doing, seller financing or lease options can be great tools to start with. The beginner's guide here covers some of it.

If you're just looking for an amortization table, bankrate has a good one.

At $620 a month, after taxes and insurance you are not going to make very much off that property, and with a down payment, it will take a while to get your cash back out of it (if you can). If the $620 includes taxes and insurance, it may not be that bad. Don't trust zestimates, they are almost always wrong. 

"How to influence people and make friends." The books on strategy and numbers are important, but don't forget that real estate also has a strong social aspect.