#21
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Re: My Brother-In-Law needs help (Real Estate Investment Fund)
[ QUOTE ]
I don't know if its you or not, but i've tended to have a difficult time finding financing for my deals. I'm sure that I can be done, and I have developed some relationships with smaller, local, portfolio lenders to work with me on some deals. [/ QUOTE ] As in I know from people who work in commercial mortgage space (origination and securitization) that underwriting standards have become extremely lax, especially for conduit loans. It's possible that your scale was a bit small (it'd be difficult to justify the upfront costs with loan amoutn less than $500,000), your properties/situation a bit non-standard (small loans that can't be securitized aren't nearly as marketable), or you just didn't shop hard enough. Still, 20% isn't exactly hard to beat. |
#22
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Re: My Brother-In-Law needs help (Real Estate Investment Fund)
Thx a ton for all the info guys.
I'm going to have him read all this tomorrow when he gets back from the hospital. Much appreciation. |
#23
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Re: My Brother-In-Law needs help (Real Estate Investment Fund)
Hey spex, didn't know you invested in Real Estate.
Where do you live and what kind of properties do you buy? |
#24
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Re: My Brother-In-Law needs help (Real Estate Investment Fund)
I live in Kansas. Historically I do small rental properties - mostly 2-4plexes, some SFHs. I've never found great cap rates on bigger units in my area, so I've stayed away.
About one year ago I started working in the mobile/manufactured homes business, and that has taken off pretty quickly. Now I'm pretty much only doing that stuff - trying to buying MH parks, developing parks, developing manufactured SFHs on land, etc. I like that compared to stick-built construction, manufactured is only a fraction of the work, cap rates are always double-digit, and management is much easier. I know that you do flipping, right? OP, sorry for hijacking your thread. |
#25
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Re: My Brother-In-Law needs help (Real Estate Investment Fund)
[ QUOTE ]
Still, 20% isn't exactly hard to beat. [/ QUOTE ] Yes, I know. But I'm not looking for financing - I'm selling notes at a discount that will yield 20%. Thus, my investors get a 20% return, and the payments are guaranteed by my company. Perhaps paying 20% is a bit too high, I don't really know. Perhaps I'm leaving money on the table. But my yields AFTER I pay my investors 20% are still hover at around 80%. And I NEVER hurt for the money when I need it. I make a call or two and I've got the cash, end of story. It works good for me. |
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