Hi, everyone My question is how can a startup company buy apartments using creative financing ? NEED HELP

I have worked in multi-family housing for ten years, I incorporated two years ago and have a small office. I am currently working on my MBA and will be finish in August 09. I want to grow my small company in order that I may leave my full time job. I am working on improving my personal credit and establishing business credit. I will be thankful for anyone who can mentor me through this process
In Buying Property - Asked by allen b. - Dec 13, 2008
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Answer(s)

nick k.
Owner/Investor
Smyrna, GA

Seek out David Lindahl's course on apartment rentals/acquisitions etc. On google and check his info out. He is considered to be one of the best teachers out there.
Let me know how you fare with him and also how your pursuit goes. You can email me: njk6 at hotmail dot com. Headline should be Loopnet. The first answer you received was good too, but keep in mind that you need to pay back that biz line of credit and if you don't learn what to do to run it properly and which deal is a good deal in the first place then you'll have difficulties from the start. Your MBA is from a formal educational institution and invironment and often they just somehow miss the blood and guts of real business life and that's why I suggested the Lindahl course. Thanx, Nikko

Dec 15, 2008
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E B.
Lender/Mortgage Broker
Bethesda, MD

I am in a similar position. I've worked in multifamily housing for about 8 years on the lending side. I have aspirations of branching out and eventually acquiring property as well. Send me an email, maybe we can compare notes. egbenj at gmail dot com

Dec 15, 2008
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Joe V.
Owner/Investor
Plymouth, MI

The key is to find a private funder that is NOT hard money. You can find Equity PArtners that will take part of your profit at the back end, along with a nominal interst on a loan, and you can find ones that will do 100% financing as well. Hard money will not get you what you need in your stage of investing since they will probably price you right out of a profit. Don't rationalize depreciation as a reason to buy a negative cash flow property...there are too many oportunities available. A great tool in the beginning, as well as after you have established yourself, is establishing addess to LOC's. Be carefull thoguh. Make sure you get a money back guarantee on the "Shelf Copmany: you buy to get this LOC, and also make sure these LOC's are already attached. Too many options are out there that sell you a shelf company ready to go to the bank, but the bank doesn't know you yet. The bank will be happy to start you off at a low LOC and in about 5-10 years you can work up to an LOC worth using. The ones you want are the ones with the LOC's already attached. These are GREAT tools.

Dec 18, 2008
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Chris S.
Broker/Agent
Coeur D'alene, ID

Good question, tough to answer in today's market. I like the idea proposed of an equity partner, but they are VERY difficult to find. Investors with cash are either doing their own thing or they are on the sidelines for the time being.

Jan 5, 2009
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