Hi ALL, I have an interesting problem and would love some insight into the remedy. I am a real estate investor of 6 years, kind of the been there done that college. I also have 20+ years at construction mainly in the multi family industry. Owned and operated a framing and drywall business successfully completing over 5,000 units in the 8 years I was in business, living the American dream.
Prior to 2008, I have bought and lost over 100 rental properties because of following the crowd even though the crowd was pushed over the edge. I have successfully rehabbed over 200 properties for me and my money partners successfully since.
What I found to be the most secure and success model of business everyone seems to run away from. Why is that? I have been picking up single family homes in the suburbs of many cities. Normal mom and pop locations blue collar B type neighborhoods. Each or these type of homes Cash flowing an average $500 to $600 each property each month. 15% to 25% ROI is normal for us to achieve. The big kick in the paints is I can payoff most of my properties in 5 to 6 years because of our buy price. Me and my business partner have been doing this since 2009. So its not new to us, we have been around so long that we are the banks 1st call. So we get the best deals in the cities we work in.
I love paying off the these properties, usually in 5 to 6 years, because once they are paid in full they are completely recession proof and no bank can ever take them from me, again. Yea, these properties average between $20,000 and $50,000. While most of the US is sitting around with over inflated property prices and when the knife falls and house prices falls 5%, 10% to 15% these properties will always be ours and when the crap hits the fan our investments are unconditionally safe and secure. This usually results in a wind fall of rents going up.
This is where the problem comes in, I can buy as many of these properties as we can find. Yea, a boat load of properties. And the larger long term guys don't take a second look at us because "Who Wants To Own A Cheap Property" If I were a Baseball player I would be famous for hit singles and not going all in for the Home Run's. Not glamorous I know. But extremely effective.
So it comes time for the questions, yea I am sure there will be a bunch. Yes, I am looking for longer term 5 - 6 year money with the property as the collateral at 50% - 60% of ARV price. I will cover the rest. Let me know your thoughts, I would love to here from all of you.
Hello Donald - Sounds as if you have a solid strategy and as long as it is working for you then I say - Keep it up!
When it comes to financing these transactions, are you talking about residential homes, multi-family, small apartments? If you aren't seeking too much to pick up a home here and there, then we might have an option for you through an Unsecured or Secured Loan with one of our firms. We start at $10k.
Can you send me a Summary on what you currently are seeking?
Thanks - Linda
Thanks for the Reply and your interest. These are residential single family homes.
We can package these type of properties to fit any box. Is it a time frame that we need to work in? I can pick up as many properties of these types and have them ready to be taken down for permanent loans quickly. It is NOT just one package I am looking at. We are getting these types of deals in every week.
Lets chat more to see if this is a good fit for us.
Steve, Thanks for replying to my post.
I would be looking at a 10 year financing, but really only need about 7 years before everything is paid in full.
We would be picking up 10 to 15 properties for the 1st round of properties. Averaging 20k per property. But we would be flexible to carve out a project package that meets both our needs and security.
We currently work in Kansas City, Saint Louis, Memphis, Atlanta, and looking to start in Dallas.
Each Package of properties will only be located in one City at a time.
We can help you with the loan. We offer personal, company and business
loans to individuals and companies in severe need. Apply now and get
your financial problems solved. The interest rate is 3% yearly.
Contact us via e-mail: firstname.lastname@example.org