All Forum Posts by: Tyler Young

I need some advice on securing a loan for my first property. I'm hitting roadblocks with lenders because I'm a new company, and private lenders are telling me that I haven't borrowed substantial amounts in the past. Does anyone have any tips on how to borrow money to kickstart my first Section 8 venture without having to deal with interest payments on a personal loan just to establish myself in the US financial system? Your insights would be greatly appreciated!

Being new comes with lots of challenges. Lenders want experience for a reason. Look into partnering on deals to start. Even if those deals aren't your end goal the experience gained is highly valuable. Hard Money / Bridge loans that are refinanced out to long term after a renovation and seasoning will help you get a deal funded. But working with a partner that is doing the deals similar to what you want to do will give you the ability to get your road map. It's not impossible to strike out on your own to start but the road is much harder. So many new investors I speak to are thinking so much about the long term without the knowledge of what it takes to get there.

The question I have about partnering is this, what benefit would a bank or lender see in me having partnered with someone on a few deals. Im all about knowledge and im looking forward to learning as much as possible from anyone and everyone I can. But if a partnership doesn't help me look better to a lender or help me get funding then what should I do now or in addition to a partnership?

The partnership shows experience completing a deal. Conventional banks are going to want to see financials for 2+ years which I'm assuming isn't an option for you just starting out. So, when it comes to Hard Money and Private money the lenders look at 2 things: the deal and the ability for the investor to make the deal happen. Going in with no experience a lender is not as comfortable that WHEN you find something unexpected you will be able to execute. Completing deals shows you will get them to the finish line. Also, a partner with experience serves as a type of mentor as well. You are able to tap into both their knowledge and their network. If you work with a partner and fund a deal or two with them at XYZ BANK and are able to pay them off through whatever exit you decide. Now you can go to XYZ BANK and tell them you're experienced and are looking at this deal. They will be more inclined to work with you by yourself. Then when you have a few solo deals completed ABC bank sees you have a track record of MULTIPLE deals and will be happy to lend to you.

Thank you this definitely answers my question! What kind of partnerships would you advice I look for? There are a few people I have contact with that are willing to help me with this process and may be possible partnerships but id love some advice on what kind of partnerships I could study up on to approach them with.

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Morgantown, West Virginia

Quote from @Seth Timmerman:

Quote from @Tyler Young:

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Morgantown, West Virginia

Quote from @Nicholas L.:

@Tyler Young

can you just save up until you have a down payment?

Not really an option. I moved back to the US 5 years and essentially started from 0. In 5 years ive gotten to a place Im happy with but its not a long term solution.

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Morgantown, West Virginia

Quote from @Chris Seveney:

@Tyler Young

If you do not have the funds for the down payment then you will need to bring on a partner - lenders today are not doing 100% financing

I have looked a few different ways to get funding and I was hoping to have multiple kinds of lending for a single property such as credit stacking for the reno and private lending for the downpayment and bank for the mortgage. Can you explain in the simplest way you can to a noobie which of those a partner would help with if any. Also what would be my main focus when getting a partner? Would I be looking to just have my name on a property along with them while they manage their own property much like an authorized user on a credit card?

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Morgantown, West Virginia

Quote from @Robin Simon:

Quote from @Tyler Young:

What is the unit count of the property you are looking at

Im looking at single family homes newer than 1950 and less than 1300 square feet. Im thinking it would be best to BRRRR so that I can refi and roll into my next property. But im having trouble understanding how to get the money for downpayment paying back a lender fixing the property and also having any left over after the refi to roll into the next property. but before any of that happens I need to have someone willing to lend to me.

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Morgantown, West Virginia

Quote from @Kerry Noble Jr:

find a partner

What type of partnership would you suggest? What type of an agreement would you make if you were in my position? What would be the goal of having a partnership? Please forgive me lack of knowledge im here to learn.

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Morgantown, West Virginia

1 Vote

Morgantown, West Virginia

All Forum Posts by: Tyler Young

Tyler Young has started 1 posts and replied 7 times.

Post: Need advice for new company lending

Post: Need advice for new company lending

Post: Need advice for new company lending

Post: Need advice for new company lending

Post: Need advice for new company lending

Post: Need advice for new company lending

Post: Need advice for new company lending