All Forum Posts by: Trevor Finn

Hey @Derek Bell,

This sounds like a solid investment with good cash flow and upside potential! With the sale leaseback ensuring income immediately, plus your plan to generate additional NOI through the storage yard or expansion, the numbers look strong. Given the high demand for industrial space, especially near major interstates, this could be a smart move. With $141K annual passive income after expenses, you're looking at a solid return on your investment.

Based on your info - my analysis is below:
Your purchase price is $3,900,000. Your building is at a cap rate of 9.28%. The equity needed to close is $1,053,000. Your first year NOI comes out to $362,000. Your first year Net Cash Flow is $141,183.65. Your monthly payment will be $18,401.36. Your annual payment is $220,816.35. Your balance at maturity is $2,620,964.89. The DSCR is 1.639. Your first year Cash on Cash return is 13.41%. Your bank's debt yield is 12.38%.

Hi @Erol Shashaty,

Based on my research here is what I came up with!

For your overseas fund investing in Cleveland residential properties through a U.S. corporation, it's crucial to partner with a bank experienced in working with foreign nationals and investment funds. Given your need to avoid personal guarantees and collateral, consider the following institutions:

1. KeyBank: Headquartered in Cleveland, KeyBank offers a range of commercial banking services and has experience with international clients. Their familiarity with the local market and diverse financial products could be beneficial.
2. Huntington Bank: With a significant presence in Ohio, Huntington Bank provides various commercial banking solutions and has a history of working with business clients, including those with complex ownership structures.
3. PNC Bank: As a major regional bank, PNC offers comprehensive commercial banking services and has experience dealing with corporate clients, which may align with your fund's requirements.

It's advisable to contact these banks directly to discuss your specific needs and assess their ability to accommodate your investment structure without personal guarantees. Additionally, consulting with a financial advisor experienced in international real estate investments can provide further guidance tailored to your situation.

I may also be able t find a lender besides a local bank! Hope this helps!

Nice find @Marshall Smith on that 4-plex! Given your experience and strong financials, you have some solid options:

1. Commercial or Portfolio Loan: These are tailored for investors and can help you avoid personal guarantees, especially since you have an LLC.
2. BRRRR Loan (Buy, Rehab, Rent, Refinance, Repeat): Some lenders offer BRRRR-specific loans with funding for purchase and rehab, allowing you to refinance based on the new ARV once stabilized.
3. HELOC or Cash-Out Refi on Current Rentals: Tap into the equity on your single-family rentals to secure funding for the 4-plex purchase and rehab without high origination fees.

Each has pros depending on your cash flow goals and timeline. DM me if you need assistance finding a lender!

@Jesse Jones-Smith

Congrats on the job and housing perks—those open some interesting paths! Here’s a quick take on each option:

1. Sell and buy in SoCal: This offers simplicity and high appreciation potential, but with all capital tied up, it limits flexibility if the faculty housing waitlist falls through.
2. Keep current home as a rental, downsize in SoCal: This maximizes long-term profit through appreciation of both properties but might feel tight financially and in space. Given your stage of life, this could be challenging but worthwhile if you’re confident in handling the stretch.
3. Sell, and reinvest in cash-flow rentals: Using part of the equity to generate cash flow with out-of-state rentals could create a retirement income stream now while still capturing SoCal appreciation. A property manager could ease landlord duties. If consistent cash flow and diversification appeal to you, this might offer the best blend of growth and flexibility.

Ultimately, it’s about balance: if you want to prioritize appreciation with minimal hassle, the first two options shine. If steady cash flow is a priority, option 3 adds resilience to your retirement. Let me know if you want to dig deeper into anything!

Hey @Greg Hammond,

Given your situation, selling could be a strategic move. Since you’re eligible for the capital gains exclusion, selling now would let you cash in on the $200K appreciation tax-free, avoid ongoing negative cash flow, and put the profits to work in cash-flowing investments closer to you. This would reduce risk and speculation on future appreciation. 

However, if you’re comfortable with the expenses and prefer to hold, you’d continue building equity, but it may take a while for cash flow to improve. Ultimately, it depends on whether you want to lock in gains now or play the long game. Would love to know what you decide to do! Keep me posted and good luck!

Great questions @Sharad Bagri!

1. The due-on-sale clause technically allows the lender to call the loan due if you transfer to an LLC, but enforcement varies. Many investors do this and don't see issues, but it's best to proceed carefully and know there's some risk.
2. You don’t necessarily have to inform the lender, but it's wise to consult a real estate attorney or CPA to guide the process and minimize risk. They can ensure it’s done properly and provide advice on your specific situation.

Congrats @Joe Ferguson on getting ready for your first investment! Both deals have solid potential, but for a first property, the duplex might be a smoother entry point. Living in one unit while renovating the other lets you build equity and generate rental income, plus the BRRRR strategy could help you recycle your capital for future deals.

The 30-acre parcel is a great opportunity too, but subdividing and building may require more experience and upfront capital. Starting with the duplex could set you up with cash flow and real estate know-how to take on bigger projects down the line. Would love to hear an update on what you decide to do! All the best!

Hi @Tanya Maslach,

Here’s a visual workflow chart for managing your first MTR:

1. Lead Vetting (Turbotenant): Screen and manage tenant applications.
2. Acceptance & Move-In Prep (Hospitable): Assign cleaning tasks, manage reminders, and handle cleaner payments.
3. Tenant Communication (Hospitable): Automate all tenant communications, such as move-in details and reminders.
4. Rent Payment (Turbotenant): Track and manage rent payments with reminders.

Hope this help's from one integrator to another 😀

Hey @Michael Dallas, it sounds like you've put a solid offer on the table—10% interest-only on $95k is competitive, especially with a clear 2-year exit plan. If he's dragging his feet, it might be time to set a deadline for his answer and line up other options to avoid last-minute stress. You could also present the deal to other local investors or private lenders who might jump at the opportunity, given the attractive terms. LMK, if you need to present your offer to more private money lenders!

Hi @Muhammad Kashif, 

It's great to see you starting your RE journey! If you're sticking to all-cash, passive investments, you're right that flippers and small developers often look for cash investors to fund deals without traditional financing. You might explore partnerships where you fund all-cash deals in exchange for a portion of the profit. Networking at local REI meetups, joining investor groups, and connecting with experienced flippers can open doors. Private lending platforms and some online real estate networks also list these types of cash-only opportunities. Just be sure to thoroughly vet the operator's track record and the deal structure. I can be a resource to find these types of investments, LMK!