Here is a closed motel in the Orlando area that has an appraised value of just under $250,000. If I could buy this and rehab it, I could turn it into a profitable business.
https://www.google.com/maps/place/Super+Inn+Motel/@28.5125663,-81.3970553,3a,90y,257.39h,86.67t/data=!3m6!1e1!3m4!1so6nNxESGpI1qbEqW4vauyA!2e0!7i13312!8i6656!4m2!3m1!1s0x0:0x59cdca641719a711!6m1!1e1
This is all well and good except for the fact that I don’t have access to this kind of capital. I currently make under $40,000 per year managing an RV park. If I could find out how to secure financing for projects such as this, I could repeat this process many times.
Any ideas? Regular banks/credit unions won’t loan to me based on lack of tax returns.
I have recently listed my company to start selling high-yield bonds through the Securities and Exchange Commission.
I can’t qualify for personal loans of that amount.
Interesting proposition and a doable deal…the key to any deal is the funding…without the funding, it is merely a conversation ‘of fluff.’ If one wanted to do such a transaction, one might consider putting together a trust, the res of which would be the mortgage on the property, then have a number of shares in the trust investors can own at a certain interest rate, thus providing you the funds to buy and rehab (be cautious of blue skies laws).
Private money in pensions/IRA’s is where I’ve funded millions of dollars in deals and that is likely where one could find sufficient funds to accomplish their goals. Most pensions earn way below what an investor is willing to pay and there is some $7 trillion in pension funds currently.
Having said all of that, I would recommend (if you were my student being mentored) to start on a simpler and smaller project. Build up to such a deal by starting smaller…perhaps a mobile home, a home, a lease purchase, a subject to deal…something where you can use your talents that does not require lots of money (which it seems you do not have) and look for deals you can do rather than deals you cannot do.
Hope this helps.
Rob
Yes, I’m looking to start with a $16,500 fixer upper.
Then, I will finance further deals with a combination of my cash that I’ve built up and loans I can then qualify for, along with investors I could then convince due to my hopefully positive track record.
I have a realtor who is an experienced flipper that sends me listings of houses he would personally flip.