All Forum Posts by: Todd Dexheimer

Instead of just being a passive investor in the deal, I would try to work yourself into the deal. Possibly bringing in some additional capital from your network, helping with due diligence, helping with asset management, technology implementation and/or signing on the loan. 

Buying a smaller property could also be great depending on your goals. Owning a 20 unit is great to have in your portfolio and will give you a little experience to buy more 10-40 unit properties. Ultimately if your goal is to own 100+ unit buildings though, the 20 unit is a step in the right direction, but that alone will not give you the experience and resume to buy large MF.

Sounds like you are looking for single family markets, which I don't know much about. If you are looking to purchase commercial MF, then look right in Jacksonville and the east Florida coast, Orlando, Tampa. Also, Savannah and Atlanta

Check out this article before connecting with any RE broker: https://www.biggerpockets.com/...

The biggest mistake people make, is that they call up brokers when they aren't ready and sound like complete newbies. The broker, then does not take them seriously and they get no deals. 

You should be able to find a bank to finance this. Call your local credit unions and smaller banks and talk with the commercial lenders. these will be your best options and should be able to get you a construction loan as well. 

For seller financing, just make sure the terms beat the bank. I have done a lot of deals with 10% down to the seller at market interest rates and terms. When you present it to the seller, show them the amortization schedule, so they can see the money they will be making. 

This may help provide some ideas: https://www.biggerpockets.com/...

I wouldn't touch a deal that has a 2.8% cash on cash return, with no value add upside. You are relying on factors out of your control to make this a good investment. If you could add value, raise rents and/or lower expenses, then something like this could make sense. 

No, this won't work, but doing what Erik said will. You could also do a line of credit them. If the SF cash flows, then put a long term mortgage on them that will maintain good cash flow. With those loans, you now have a nice down payment to buy a larger building. 

If you are looking to buy commercial MF, which is my assumption, since that is where you are posting, then you should absolutely not sign an exclusive agreement. If you want to move fast, then form relationships with the real estate brokers in the market that are selling your target property. MF agents are typically listing agents, not buyers reps. Check out this article on tips and details: https://www.biggerpockets.com/...

If you are going to buy a 1-4 family, then you could sign an exclusive (I still would not).

Typically a KP is getting 10-20% of the equity for their experience and to sign on the loan. If you are not having them sign on the loan, then I am not sure why you need them. If it's for them to consult, then a consulting fee of maybe 1-5%. If it is for them to asset manage, then give them the full asset management fee. 

Talk with local lenders about doing a renovation loan. I have done hundreds of these. Typically with small 1-5 branch banks and credit unions. You will want to talk with a commercial lender. This is not your traditional homeowner loan, but a commercial 1-4 family renovation loan. 

Go directly to their websites. Find out who is selling properties in your area and call them. If you are having a hard time with doing that, then go to Loopnet and call the brokers that have listings. I typically don't call about the specific property, but just have an introductory phone call. Another great way to find out who is doing business, is to call the lenders, appraisers and property managers in the area that deal with your target property and ask for referrals. Check out this article for more tips and details: 

https://www.biggerpockets.com/...