I am currently writing a small business plan for an LLC that would involve buying, renovating and renting properties to individuals or other businesses but I am getting stuck at the financing portion.
I have come found that financing is available for a second property/rental property for an individual with 20-25% down but I would prefer to keep my business plans away from any personnel liability.
I have a decent cash reserve for start up/renovation/miscellaneous costs but would prefer to have tenants pay my mortgage while the cash grows in other accounts or is used to purchase/renovate other properties. If that is at all possible that is...
Answers
some reading:
https://www.google.com/search?q=statign+a+real+estate+investment+partnership
What sort of capitalization rates are you finding? What assumptions and estimates to these entail (rent-inflation, vacancy rates, maintenance, capital expenditures, eviction hassles, etc.)
Is the strategy to buy and hold as rentals, or buy and sell in a few years (or perhaps sooner)?
What sort of returns do you think you can offer to investors?
Josh - I'm interested in learning more. Feel free to message me.
Being from texas have you looked into Lifestyles Unlimited. http://www.lifestylesunlimited.com/
the are a group for real estate investors. They have contacts with lenders suppliers etc.
A friend had a similar plan. The way he solved the problem was to minimally renovate the first unit just to get the lease going. From there he could show cash flow and reserve (deposit) to invest in a better renovation of a second unit and charge at a higher rate. Once the first unit's lease was up he would improve the first unit better than the second and charge an even higher rate. The cycle continues being applied to just a few units or expand to many.
Your Answer
Pleaselog into answer this question.