All Forum Posts by: Ty Schuman

Hey guys,

just wanted to share a way I have found to save substantial $$$ on materials I purchase from Home Depot by using the Social Good App. Social Good is a non profit organization that has teamed up with major retailers across the world to be able to offer Social Good members the opportunity to earn cash back, in some cases up to 200% of every qualifying purchase made using the social good app, and following each vendors “conditions” to be eligible to earn the cash back in the form of SG tokens.  SG tokens can be sold for cash or traded if you so choose. 

I have earned 150% for the materials my company purchased from Home Depot, and though it understandably takes 90-120 days to be able to sell or trade the earned SG token ( so ppl don’t try and earn SG tokens and then go get a refund, fraud, etc). The tokens are in my wallet and it adds up fast when you’re remodeling a home.  Feel free to check it out for yourself, (disclaimer my link is a referral link), but I honestly use the app all the time and have never had any issues, and the partnerships and their mission is impressive in my mind. If you have any questions, I am no expert, but I will help you in any way I can. 

Social Good

 Thanks Chris for the response. 

I have expected to pay 10-12% interest for sure and I don't mind personal guaranteeing the loan if need be, I'm more looking for someone who will loan on LTV of the property. I am looking for a lender for who I can start building a relationship with, as I do with my other properties, it just makes the process so much easier, plus I have investors who want to finance the deal for me, but it's more beneficial for my company and what we have in our pipeline if I do the deal without giving up equity.

 I made this post in hopes to get referrals from more people like yourself who might recommend who they have had positive experiences with getting financing for their deal, being that it was a new relationship with the lender. Ideal terms without going into to much details on the deal, we are looking for:

-6-12 month (interest only) (only going out to 12 months in case the non-recourse HUD Multi-Family Loan is still as long and slow as it was when I was a Commercial/Residential Loan Officer straight out of college, after graduating with bachelors degrees in Finance-Real Estate & Economics. Full expectation is to pay-off loan either from sell of units (3-5) and/or roll in any remaining debt into the loan for the additional 18 units in September)

- Expect to pay between 10%-15% interest (3 months interest min guaranteed)

-Purchase loan amount based on Appraised value of property up too 75%-80% LTV, with the property collateralizing the note.

The location, demand for housing and strength of the assets, has made this deal very attractive and pulled in a lot of interest from investors who want to partner with us on the deal (preferred equity partner) but we are looking to scale our business  and it would be beneficial to not part with equity on this deal. We have an opportunity acquire multiple properties that offers the opportunity for 100+ units in a highly desired market. I have been give the first right to purchase when they decide to sale which I just learned will be by the end of this year. So for us giving up equity in this deal, is not preferred unless we work out a deal where they commit to funding a % towards the (100+/ development deal). We are just wanting doing our due diligence, and want to make sure we explore all options available to us. 

 Although I am 36 and have been in real estate on some level since I graduated with 2 bachelors degrees in Finance Real Estate and Economics. I worked building homes during college to pay for my classes and living expenses, before building my first commercial property from the ground up after leaving my Commercial/Residential Loan Officer job I took out of college to work for myself at 25. I know that I have much to learn and I am always eager to hear different perspectives, and constructive criticism from other more experienced and successful investors than myself. I appreciate all contributions to this tread.....

Cheers,

Ty

Hey Guys,

I have a deal where the seller has many projects going on (Developer) and is in need of cash flow, so I am looking to purchase all 7 units once certificate of occupancy is delivered in June, with first right to purchase the additional 18 units that will be finished in September. Units are as follows:

7-2 bed / 2.5 bath with large office and garage 1,910 sqft

15- 2 bed / 2 bath 1,189-2,228 sqft

3- 1 bed / 1 bath 962 sqft

My LTV on the deal is roughly 70%. I am looking for best option to finance the 7 units with probably a bridge loan in anticipation of selling 5-6 of the units, leaving me 1-2 free and clear that would gross $6k in rent as LTR in this market. Because of the growth this market has experienced, they are experiencing a housing shortage, with (Apples to Apples) comps selling for full asking price in less than a month. Over the past 180 days, days on market for all comps is 62 days.

I recently just purchased another property (SFR) that is about 60 days from going on the market, and I have over $100k + in equity in the home, that I will do a cash out refi on as soon as upgrades are completed, but am lacking liquidity due to a recent second cash purchase (SFR). Because I only need a short term bridge loan for the 7 units, can anyone recommend a lender who would be interested in funding the following:

$2,800,00 Purchase Price (7- units)

$4.025m - $4.165m Anticipated Appraisal Price (upon completion)

Brand new 7-plex right next to a large recreational Park. Great location that provides walking distance to schools, parks, restaurants, and retail shops. Units have1910 Sf with 2 beds, 2.5 baths plus a large office with an oversized 450 sqft garage. Other features include: Quartz counter tops, stainless steel appliances, LVT flooring, upgraded cabinet package with soft close, oiled bronze fixtures and glass shower doors. The finishes are consistent with other recently sold units. I have lived in the market for the past 6 years full time (currently not their due to family member health situation, but will be back and forth for the next few months.  I am very familiar with the location and the developers and the quality of their builds, which are top notch. 

My personal credit is not great, due to a previous partnership (restaurant-Covid19 related), but I have experience in Real Estate having built 4 residential homes, 2 commercial properties from the ground up over the past 8 years. I am looking to get into this deal based on it being a short term bridge loan based on LTV, anticipating paying off with 90-120 days from sale of units and or paying off as I roll the loan into a HUD backed Multi-Family loan, or similar financing for the remaining units if I decide to exercise my first right of refusal. I would appreciate any advice on lenders you may recommend as I have done most of my deals with a local bank that does not lend in that market due to being outside of their market, unfortunately. If someone can recommend lenders who you previous used who lends based on LTV and strength of collateral for multi-family properties, I would greatly appreciate it if you would send me a message. I hope everyone is killing it, and any deal feed back on my proposed deal (don't want to post specific details of the deal in a public forum) I would appreciate a DM or email to discuss it.


Cheers,

Ty

https://www.blackknightinc.com...Try working with them to get paid access to the mortgage data they provide. I am working on building a app that provides real time data for this specific use case plus additional use cases but its probably a couple months away from being ready for people to start beta testing. I will share when it is ready for sure. Good Luck Brother.

Cheers,

Ty

@minna Reid Again I do not appreciate the defamation of my character as you don't have a clue what you're talking about. I have never went under contract with a fake POF, nor would I. I merely was asking about other peoples idea on how to get creative without having to mess with my 350 home portfolio and having to take the time to go through the bank. But rest assured, I broke down and walked in and walked out 5 mins later after only a signature...poof problem solved. But I must say you might want to refrain from commenting about someone when you clearly have no idea what you are talking about, or the situation someone could be going through, its call being a decent human being and could serve you well down the road in building relationships. But that being said it's ok, I appreciate all CONSTRUCTIVE criticism I get and learn from it. Have a bless day

Thats simply not true, I would never submit a "POF" thats not valid. I have the funds, over $1m in our acquisitions account, but because we also have partners and we established that we don't cover earnest deposits, I am not going to make a except for myself because then everyone would want to do it and that eventually would come back to bite us. I have my Masters Degree in Finance & Economics as well. Some people need to quit being so judging on here and practice reading comprehension skills before commenting false narratives. I only posted for advice on my situation, if someone has had it happen to them before. And it is time sensitive, my aunt is in danger of losing her house and the reason I am having cash flow shortage is because my buyer is in the hospital with a "cold" (covid19) and my closing had to be pushed back to next week.
. My earnest deposit is high because these are Fannie Mae REO foreclosures and to get them to change it they said it would require them to reopen the auction with I rather not do, because I like my purchase price and I have only until the 15th to help my aunt. I've been paying her cancer treatments out of my pocket because she doesn't have insurance, so Im just not rolling in cash like most of these commenters must be, but good for you guys. If anyone that can comprehend the situation without the bs opinions from some, not all so far, I would appreciate your comments. This I thought was a forum to help people and encourage them, so far most of what I have received seems like you are judgement, perfect and has been 0 help is solving the issue. For the constructive commenters, thank you.

 @Minna Reid and no I am not as financially flush as you apparently so having $60k of my own money tied up in a deal does present its challenge's, thats why a came on here to see if anyone has been in a similar situation that could share their experience.

I am a cash buyer. I have a financial partner who covers all my purchases, however we cant do earnest money as we are transparent and I cant ask for him to do it for me and then not do it for everyone. My issue is that I have $60k+/- locked up in this other deal so I was trying to come up with a short term solution as the Bank cant change the contract parameters without reopening the auction again and Im happy with where I am as far as purchase price so I really don't want to go down that road. My credit is just okay at the moment so not sure that conventional financing is a good option. So if anyone else has any creative finance ideas I would appreciate the feedback.