All Forum Posts by: Scott Wolf

 My pleasure.  Keep me in mind for title when you buy that deal!

@Account Closed, it's essentially a second loan with a higher rate (I've typically seen 8%).  They usually have an agreement with the main lender for foreclosure processes.  Investopedia has a great explanation on it. https://www.investopedia.com/terms/m/mezzaninefinancing.asp#:~:text=Mezzanine%20loans%20are%20subordinate%20to,fixed%20and%20part%20variable%20interest.

@Account Closed, fully financed, all in with no money out of your own pocket will be a difficult trick to pull off on your first deal.  Even experienced syndicators put their own money into their deals.  Most investors like to see the operators having some skin in the game.  That being said, based on price point, you may be able to do it.  

You could potentially get a commercial loan for 70%, a mezzanine loan for 20% and the remaining 10% investors, but the investors will most likely all need to be on the loan, unless your willing to make a personal guaranty on the loan.

@Benjamin Singer, I sent you a PM.

@Account Closed, if you can make the numbers work, then go for it.  Private lenders typically have higher rates than banks so the monthly payment will be higher.

@Benjamin Singer, you could always go the private money route and buy it in an LLC. You will pay higher rates using private money.

What do you think the current market value is vs. what you're in talks to buy it for?

Nick, I'd caveat this with 'Do not buy anything stabilized with negative cash flow".  Fixing an prior owner's poor management and unlocking value is a major key in RE investing.  It's definitely been a key to my success in the syndications that I have invested in.  I apologize if someone else pointed this out, as I have not read every response.

@Matt Roberts, you should check out Boca Real Estate Investment Club - https://www.bocarealestateclub....

Also, I'm happy to meet for coffee if you'd like.  I too just moved down to Boca 60 days ago.

@Arsen Atanasovski, you may have luck with a blanket loan.  How many properties are you trying to leverage?

@Bill Ward, what a good problem to have!

You can try to 1031(to avoid capital gains) into a DST (no hassle) or buying a bite size NNN property which has no landlord management(but the potential for vacancy and releasing).

I like the private money route, especially if you keep the LTV low, although I'm not sure many would go for 60% at a private lender rate, but worth a shot! @Neil Rose, if you know of anyone looking for that setup, feel free to give them my info!