Quote · BiggerPockets Real Estate Podcast
I Bought 15 Rental Units While Making $15/Hour Putting Up Fences
Where this was said
Financing the 7-Unit Deal: Private Money and Community Banking
At 29:50 · chapter starts 28:20
The financing story for the seven-unit portfolio is where Britton's creativity shines brightest. With effectively no cash available, he joined an investor community, posted the deal's projected ARV ($450K) and projected rents ($6,000/month), and offered a private lender 10% interest-only for one year plus a balloon repayment at refinance. Within two weeks a stranger wired him $46,025. He carried that check to his community bank, which issued a 5-year term / 20-year amortization commercial loan for the balance and stacked a $40,000 construction line on top. The bank's comfort came from the existing $3,200/month in rents — proof the asset performed on day one. Henry Washington uses this moment to explain the essence of community banking: flexible, relationship-driven underwriting that larger institutions won't offer [1] — Britton Eads "With $1,500 in his bank account and a $265K deal under contract, Britton posted in an investor community offering 10% interest-only for one…" 25:55 .
By replacing carpet with LVP flooring, adding stainless appliances, and refreshing cabinets and counters, Britton doubled a duplex's rents from $1,400 to $3,000/month.
Britton had $3,000 in the bank when he found a $250,000 duplex. Instead of waiting, he pulled equity from his triplex portfolio and cross-collateralized it with the new deal. The bank combined everything into one portfolio loan, adding $50,000 in debt as the duplex down payment.
