All Forum Posts by: Stanley Yeldell

Hey Joshua — great question! I’m both a private lender and broker, and relationship-building is huge in this space. Opening a checking account at a local bank is a great first step, but here are a few ways to go deeper:

Meet in person – Schedule time with a loan officer and share your investing plans. Ask about their lending criteria and let them get to know you as a serious, organized investor.

Be transparent – Share past projects, current goals, and even challenges. Lenders appreciate honesty and consistency.

Bring a deal – Even if you’re not ready to fund yet, show them an example of the kind of property you’d pursue. It helps them understand your strategy and gives them a chance to advise you.

Stay in touch – Even when you’re not actively borrowing, check in. Share updates on your progress or market insights—they’ll remember your professionalism.

Let me know if you'd like intros to relationship-based lenders in the Orlando area. Happy to help!

Adam, holding a 3.5% rate in today’s environment is like gold—definitely worth exploring ways to monetize the financing rather than just sell.

Here are a few ideas:

Subject-to or wrap financing: Like you mentioned, sell while leaving the loan in place. You can even structure a wrap loan and collect a spread on interest.

Lease option: Rent to an end buyer with an option to purchase—keeps you in control and can generate higher cash flow.

Seller finance the equity: Keep the existing loan in place and carry back a second note for your equity—lets you create income from the note and helps the buyer avoid high down payments.

You’ve got leverage—now it’s about structuring a win-win for both sides.

John, congrats on getting that first rental done—especially with all you’re juggling! That’s huge.

You're sitting on some untapped equity with that condo. If it appraises at ~$210K and you’re into it for ~$178K, you might have around $30K+ in equity to work with. That could be your next move:

Look into a HELOC or cash-out refi to access that equity and fund your next deal.

Consider partnerships—many investors with capital are looking for reliable boots on the ground. Your skills and hustle are valuable.

Also explore seller financing or subject-to deals where little to no upfront capital is needed.

Lastly, auctions and tax deeds are great, but make sure you’ve got a strong due diligence process—hidden issues can eat up capital fast.

You’ve already proven you can execute—now it’s just about leveraging what you have to scale smart. Keep pushing!

Great question—this setup comes down to how you value the credit risk vs. the active labor.

Since your partner is only providing a personal guaranty (not cash), and you're handling the rehab + management, a 10–20% equity share for them is common and fair in similar deals.

You could also structure it so they receive a guarantor fee or a smaller equity kicker instead of permanent ownership if you'd prefer more control long-term.

Whatever you decide, just make sure the roles, responsibilities, and exit strategy are clearly spelled out in the operating agreement. That clarity is key.

Nice work getting through your first BRRRR! For creative down payment ideas, here are a few to consider:

Cross-collateralization: Use equity from your BRRRR to secure the new property without bringing cash.

Seller financing: Negotiate low or delayed down payment terms directly with the seller.

Private money: Short-term funding from an investor or PML, paid back once you refinance your BRRRR.

Business credit stacking: 0% interest cards structured properly can free up cash fast.

Congrats on the momentum—keep going!

You’re right—most grants are for owner-occupied homes, but there are still a few options you can explore in Indianapolis:

Indy’s Low-Income Housing Trust Fund – sometimes supports rental rehab, especially for affordable units.

Indiana Housing (IHCDA) Development Fund – offers low-interest loans for rental rehab.

Federal Home Loan Bank AHP – partners with banks to fund rehab for low/mod-income rentals.

Private lenders – consider hard money lenders like Bridgewell Capital or LendingOne for rehab financing.

Check with the city’s Department of Metropolitan Development for any current local programs. Good luck!

Hey Harrisen, great question and smart of you to explore a private finance option with family—especially with rates where they are.

Here’s a clean way to think about it:

✅ Buyout Amount: Since your parents own 60%, their share of the current equity (~$160k = $350k value - $190k debt) would be ~$96k. If they’re buying out the loan and becoming your lender, it makes sense to “refinance” into a private note with them for their equity + debt, so about $190k + $96k = $286k total.

✅ Structure: They pay off the current loan, and you sign a private mortgage/note with them for $286k at 4.75–5.25% amortized over 20–30 years, depending on what cash flow works. You can always do an interest-only period upfront too.

✅ Legal & Paperwork: Definitely use a real estate attorney or closing company to structure this cleanly. You’ll want a deed transfer (if applicable), a promissory note, and a recorded mortgage.

✅ Bonus Tip: Consider a clause that allows you to refi them out down the road if rates improve, so they get their principal back and you get better cash flow.

Hope that helps clarify it! Happy to talk through specifics if you want to DM.

Hey Yehuda—nice work getting this far!

I’ve bridged small gaps a few times. Easiest routes I’ve seen:

Second-position private money (short-term, interest-only, balloon at sale/refi)

Small equity partner just to cover the gap—they get a cut, you stay light on debt

Contractor payment deferrals (if you’ve got solid relationships)

Or a bridge/mezz loan if your project is close to completion and appraises well.

Main thing: keep it clean and documented. Happy to chat or connect you with a lender if you want.

Good luck wrapping it up!

Hey Sabian,

Using hard money can be a powerful way to scale faster, but it comes with higher costs and risks. Here’s a quick breakdown:

Pros of Using Hard Money to Grow Quickly:

Speed: Quick funding (often within 1-2 weeks) compared to traditional loans.

Leverage: Allows you to take on more projects simultaneously, maximizing ROI.

Flexibility: Less stringent qualifications compared to conventional loans.

New Builds: Yes, some hard money lenders fund new construction, but terms and interest rates may vary.

Cons of Hard Money:

High Costs: Interest rates typically range from 10-15% or higher.

Short Terms: Loan terms are usually 6-12 months, sometimes up to 24 months.

Risk of Overleveraging: If the project doesn’t go as planned, you’re still on the hook for high monthly payments.

Recommendations for Wisconsin:

Look for local lenders with experience in funding new construction.

Consider reaching out to regional real estate investment associations (REIAs) for vetted lenders.

Research national lenders like LendingOne, Kiavi, Lima One, and Cogo Capital, which all fund new construction projects.

 Tips for Success:

Run Your Numbers Thoroughly: Ensure the ARV (After Repair Value) justifies the loan costs.

Have an Exit Strategy: Plan to refinance, sell, or use rental income to cover the hard money loan.

Build a Strong Team: General contractors and experienced project managers can keep projects on time and budget.

Would you like some introductions to hard money lenders specializing in new builds? Or are you more interested in understanding how to structure these deals for maximum ROI?

Hey Garrett,

This is a really interesting structure, and you’re asking the right questions. Here are a few things to consider:

Structure of the Deal:

The $300k down, $4,500/month lease structure can be a viable way to secure control of the property without immediate financing. However, since those lease payments don't apply to the principal, it’s essentially a deferred balloon payment structure. It’s critical to ensure you have a clear exit strategy before the 3-year term ends.

Commercial Lending Considerations:

When you're ready to obtain a commercial loan, lenders will primarily look at the property's income potential (Debt Service Coverage Ratio - DSCR) rather than personal income. They typically want to see at least a 1.2x-1.5x DSCR.

Yes, you may need to put down an additional 20-30% at that time. However, if the property value has appreciated and you’ve established solid income streams (like the pumpkin patch and STRs), that equity could potentially cover some of that down payment requirement.

The lack of direct commercial experience may pose a challenge with traditional lenders. Partnering with a more experienced operator or bringing in a guarantor with a strong commercial track record could strengthen your application.

Additional Considerations:

Explore creative financing options like seller financing for the remaining $1.45M if they’re open to it.

Consider structuring the partnership with clear roles and financial responsibilities, especially regarding funding the $300k down payment and ongoing improvements.

Have you considered bridge financing or a line of credit to help cover initial operating costs or unforeseen expenses during the lease period?

Would you like me to draft some potential questions for a commercial lender or broker to help you gain more clarity?