Cash loan usa
And I saw that in the notes, so I called the agent, again, shared with him with my goals were and he thought maybe I could be a good fit for this. So that worked out, I think, again, that was a huge learning lesson. If I were to do this over, not sure if I would go that route, because it was a lot, it was a lot to a big responsibility to go from two units to an 18-unit building. And maybe I missed it, but help me understand, what is the key difference between a land contract and seller financing? Because they sound very similar, maybe I missed it. So slight nuance to the two different terms, but does that answer your question, Tony? For you as a relatively new investor, I mean, were you nervous? I guess just walk us through some of the challenges that you faced going from two units to your second deal being 18 units. So, man, I just love how you kind of walk listeners through that. But there was one thing that stood out to me that I wanted to ask you about first before we move on to the rest of your portfolio is, you mentioned credit cards, how have you used credit cards where can i get a loan today for your deals?
Yeah, very cool, I love hearing the different ways people are using leverage to further grow and scale their real estate business. Kyle:Sure, so I owned that 18-unit for about a year and a half, it was tough managing it, it was maybe in a class C area of town. For the first half that I owned it, cash loan usa the seller wanted me to keep his management company.
So again, that just shows how flexible the land contract is because when he agreed to do the land contract, I had to promise to keep the manager for a certain amount of time. We talked about how flexible a land contract is, you can negotiate any type of term, that was something that he negotiated. Today I have about a little over 80 units and I would say maybe- Kyle:Yeah, well, it happened real quick but most of it was duplexes, I acquired through BRRRR investing. Tony:I just want to give an overview of the portfolio.
So a key in BRRRR investing is buying below market, I was able to easily offload these and I made a couple of bucks. This time, I came armed, I did my due diligence and research, and I knew exactly who I was going to use my refinance before I even bought the property. So I mean, I was just saying that, figuring out who the refinance lender was key to really growing my portfolio. I just kind of want to walk the listeners through how you were able to put all these pieces together.
Are all of your BRRRRs done with hard money or is it still a mix? And then I also want to get into the 15 commercial units and cash advance loans brooklyn ny tell us what exactly those consist of. At what kind of pace have you been moving on to get those knocked out as well? But my complaint is that they move very slowly and that is a disadvantage in this hotter markets where speed to close and knowing that you are going to close no matter what is oftentimes, what gets you the deal.
Tony:And walk us through that, Kyle, what did that conversation look like? But best online loan companies for bad credit I tried to just be organized, and I just went into a spreadsheet and I just I showed… Well, I found a property first and it had an acquisition price, it had a potential rehab and I outlined everything that I was going to do on this property, and then I pointed back a little bit to my experience with my guaranteed loan acceptance duplex. And it was a little spreadsheet with a three or four-page document that just briefly outlined what my plan was, and I just gave that to my hard money lender. Your credit card report, I think you had mentioned earlier when you were set up the land contract that you gave him your credit report because you want to have, I feel like I say this every single episode, you want to have a strong, personal finance foundation for when you go into real estate investing and build that business. Kyle:So I was a commercial broker for about five years. I left in April to do real estate investing full time.
And I knew that doing real estate was what I wanted to do, that that was the future. And it went right back to buying that first duplex where I had done my research, I knew that I could live off the duplexes I had. Ashley:I want to ask real quick, those people who told you not to do it, were they still working full-time or were they people that had retired because they were financially free? Kyle:Well, you asked the question, I think you know the answer. So it was a great decision that I made and not looking back in any kind of way. Ashley:Are you still managing the properties yourself or have you outsourced all of that? What does the property management look like for all your units? Kyle:I manage everything except for the 24-unit building. The bank required me to keep a professional third-party management low interest payday loans no credit check company hired for that deal. So I stay busy with the quick decision loans balance of my portfolio, which is about 55, 57 units or something, however that math works out and that has worked well so far.
But before we do that, you mentioned your wife, is she working full-time in the business with you also, Kyle, or how does that relationship work on the real estate side? Kyle:She works full time with me, we have three children. We are homeschooling this year and that is a kind of a COVID thing.
So that does keep payroll loan collector jailtime us pretty busy, but- Tony:A little bit of both. But Kyle, does your wife play a role in the actual real estate business as well and how do you guys split those responsibilities?
And I like a lot because obviously tenants pay rent through the system, all the maintenance stuff is taken in through that system. We just interviewed another couple, their kind of format was the same.
In my business, my fiance does all of the interacting with the guests in our short-term rental business, I do all the backend stuff. Do you have a deal in mind, Kyle, that we can kind of deep dive in and sink our teeth into? Kyle:Sure, so I think we talked a little bit about the first deal, which was just an FHA loan, so getting pre-qualified through that, that whole process. Let me think a little bit, the purchase price on it was 57,000, so very cheap duplex. I knew that it was kind of on a transition border area where if you went North four or five blocks, the values would go even lower. But then, I also knew that if you went South three or four blocks, it became a BB plus neighborhood and the values literally doubled.
So over an eight block area, the values were all across the board. But in having that job where I drove around all day, I knew that there was this kind of dividing line going through there. I reached out to about 20 banks, and I got about 18 nos, and it was just so disheartening. So that was not an option for me and I was trying to get it refinanced based on the appraisal. Some hard money lenders are 12 months loans, but in my case, a lot of them are six months. So anything before that, they were just going to look at the acquisition price. And I found this lender that was going to look at it a little bit early and give me some leeway. I was able to get a loan, trying to do some quick math, it was around 77,000. So I quickly had to find another lender, but it started to snowball a little bit and I was able to connect with a couple other lenders and get some of these deals done on a more regular basis, not limit me to say two loans. On a recent show on the BiggerPockets show, I remember someone saying they were doing BRRRR investing and then COVID happened, and they were into all these different loans and no one was lending.
This is something that is personal to me this year, the exact same thing happened to me. And then I started to feel feelings of freaking out that was very stressful. But in this frame I was a little bit better capitalized. I bit the bullet a little bit, and I did that refinance. If this had been a regular deal, you would have had to put 35,000 into it. Now, with this deal that you talked about, Kyle, you said that you put, what was it, 30K into the rehab. Kyle:Well, this particular one was as much smaller rehab.
I want to take us now though to the next segment of the show, which is our rookie requests line.
And if you all want to leave us a message, just call us at 1885rookie to leave a voicemail and we might use it on the next show. My wife and I are curious about how hard money lending works as far as flip goes. So if you guys have any insights on that, that would be super helpful. Kyle:I think my best advice when jumping into hard money, whether for a buy and hold property or for a flip is to just cash loan usa talk to the hard money lender and then talk to two or three more and kind of compare terms. When I first got started, I had a spreadsheet and it had hard money lender, national hard money lender B and maybe private lender C and just trying to figure out how each person works, getting to know them.
So if you tell people what your vision is, what your goals are, maybe they can help you out, or maybe they ended up partnering with you or figuring out something that is a win-win for both sides.
Tony:Now, I want to talk, Kyle, a little bit about what some of those terms are. So hard money obviously is very different than traditional bank financing for folks that are total news, like Luke from Wisconsin. What are some of those terms for hard money, like interest rate points, actual duration, what cash loan usa do those look like? Kyle:So every time I hear hard money, I see people cringe a little bit because it sounds kind of scary.
But hard money, they may look at the potential cashflow, they may look at the potential profit from a flip.
So my record for a hard money loan from the first conversation to the close table was about 48 hours.