Purchasing 240 residential properties. What is the best way to finance?

I have an LLC and we are looking to purchase around 240 properties per year and complete rehab and short term rental until sale in 3 years. What in your opinion is the best way to go about financing this. I estimate total funding need is about 24 million per year. We are NOT newbies. We have years of experience and already have a portfolio of about 25 properties with mortgages. Looking for best ideas on how to finance this.
In Buying Property - Asked by Art V. - Oct 23, 2010
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Answer(s)

Nat W.
Lender/Mortgage Broker
Bronx, NY

What kind ofbuildings are you looking to purchase? Office? Industrial? Mixed Use? What neighbourhoods? Any distressed properties? What kind ofLLC do you have? Have you tried anywere else? What maximum LTV are you looking for? How much money per property do you have to bring to the table? Are ou looking to occupy any of them?
E mail me at mceairpgcc@yahoo.com

Oct 24, 2010
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BAHRAM B.
Owner/Investor
Pinetta, FL

well, 24 million per year you know how much intrest is that ,no body is going to give you that money on what ,on residential property they just closed 7 more banks one in jacksonville florida and other states so far less than 400 banks are shut down because of foolish lendings . actually when i am looking on a property and the taxes involed the fees that cities add to utilities every year the cost of maintaining the property ,cutting grass and security of the property i get headage if this money was for a petrochemical company that would produce raw materials for other factories , that would be ok and would make the money and pay off the loan , any bank or financial institution , i am not gone go there , you won't get that money ,if you do , some one need to tie them to a tree and hit them with belt . for that many houses you should not pay more than 7 million dollars , don't pay more than $30000 each then sell 120 of them the first month betwean 50000 to 70000 .

Oct 24, 2010
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Art V.
Owner/Investor
South Holland, IL

Follow-up:
All of these properties are single family residential.
They are located in the State of Illinois & Indiana
Most of the properties are distressed
I am looking for an ongoing financing source so that we can continue to purchase and add additional areas.
We will not be occupying any of these properties.
We are a multiple member LLC.

Oct 25, 2010
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Chris D.
Broker/Agent
Decatur, IL

I hope these are not in smaller towns in Illinois and Indiana. I am a broker in IL and if you are buying anywhere but Chicago for 100 grand a unit you are getting you head knocked off.

Oct 25, 2010
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Roselyn G.
Broker/Agent
Mesa, AZ

If you're looking in the Phoenix area, there are some great bargains to be had. Will be happy to set up an automatic search for you to receive homes in your search criteria and specifications. I may be reached at 480 730 5200 or via email at roselyn.gyampoh@azmoves.com.

Oct 25, 2010
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Yang y.
Siloam Springs, AR

yes

Oct 26, 2010
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Peter S.
Owner/Investor
Kissimmee, FL

may be if it is such a great deal -i will invest too. contact me petersharma58@gmail.com

Oct 26, 2010
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Peter S.
Owner/Investor
Kissimmee, FL

may be if it is such a great deal -i will invest too. contact me petersharma58@gmail.com

Oct 26, 2010
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Adin A.
Lender/Mortgage Broker
North Miami Beach, FL

Hard money.

Oct 27, 2010
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Leah H.
Broker/Agent
Hopkins, SC

Hi Art,
There are many commercial lenders. Just get a summary package together. Then approach a few lenders with your plan. Simply, eliminate those that will not work with you to achieve your goal. Don't worry, where there is a will there is a a way.
I will say some lenders are better suited for distressed properties then others. That said, you'll have to make specific arrangements to address the issues Bahram discussed.
Eventually you'll have a few lenders on your side ready to help you achieve your dreams. For 24 million you only need a few commercial lenders per year. Let them know your plans and goals, up front. Each lender should let you know the percentage of your annual 24 million total they can fund. I am sure they would prefer you working with them exclusively until their limit is reached. Be loyal, honest and readily communicative with them throughout the entire process.
Good luck and keep plugging away. Remember you eat an elephant one bite at a time.
Regards,
Leah Henderson
(803)566-0023
leah@exitcolumbiasc.com

Dec 7, 2010
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Leah H.
Broker/Agent
Hopkins, SC

Hi Art,
Let me clarify the type of lender wouldn't be commercial but a private money lender (i.e. hard money). There are many of those available as discussed. All other points remain the same in my post.
As you know you'll need an exit strategy formulated in advance as a part of your package.
Best of luck,
Leah

Dec 7, 2010
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