All Forum Posts by: Justin Campiotti

@Brad Gustafson I see you are from Felton, my family had a blast riding the trains there at "Day out with Thomas"

@Liam Goble California is so big into energy conservation that some homeowners have their solar panels installed on the shady side of their house, just so their neighbors can all see!

@Paul Timmins Thanks for all of the links. I have a long commute, so I hope to catch up on my podcasts before too long.

Thanks for the warm welcome everyone

@Henry Salinas I have a brother looking for a home in San Jose, and the Central Valley prices are a LOT more reasonable than the bay area.

@Joshua McGinnis

If there is one thing that will get me motivated and moving, its a direct correlation between my hard work, and my profits!

I wasn't talking about increasing rents specifically, but instead was referring to the valuation of a multi family (5+) property. They are not valued off of comps (at least in my limited experience), but instead are based off of the income they generate. Therefore, a $1,000 increase in Net Operating Income (raising rents, lowering expenses, etc) can potentially increase the value of the property by $10,000 depending on the cap rate.

Hello all,

I was so excited to join BP, I skipped the step where I introduce myself went straight to asking questions. So I'm backtracking and wanted to introduce myself. I am from the Central Valley area of California (Stockton, Modesto, Merced, etc) and getting my feet wet in real estate. I'd love to eventually get into multi family and commercial properties. The fact that you can increase the value of the properties exponentially by increasing NOI is quite motivating.

Really excited about all the information on BP, and I love the podcasts. Thats how I found the site.

Looking forward to learning from everyone here, and sharing what I know too.

Thanks,

Justin

@Ken Lou

Here's what I've found out so far:

If the property I own was not held in an LLC, it would be a lot easier! For an individual, the banks were willing to give me a loan at 70-75% of the appraised value of the home, at a rate of 5.5%. I could then take this cash ($59k +/-) and use it as a down payment on another property or properties (minimum Down Payment for investment properties was 25% down, and could go up to 30%, depending on the property). There was also some talk of taking out a HELOC (Home Equity Line of Credit) against my primary residence and having that cash. I do not want to risk my residence though, so I didn't pursue that option.

Because I put the property in an LLC, the first few banks wouldn't give me a loan until after I took it out of the LLC and had it in my name for 120 days. I am currently talking to a different bank that appears to be OK with lending to an LLC, but we'll see how that goes.

Hope this gets you going in the right direction!

@Andrew S. Thought about it, but the wife and I both decided not to risk our home for an investment. We like knowing we have a place to live, no matter how poorly our investments may do!

Thanks for the advice, everyone. I think I'll call my lender Tuesday and get started!

Hello BP,

I have an investing dilemma. I have only one investment property, a rental which I own outright, but I would like to expand my real estate portfolio . Does it make sense to pull money out with a 70% LTV loan and reinvest that cash in a different property.

The rent on the original investment will be just over the 50% rule with the new mortgage in place.

I am just so conservative that I cringe at the thought of having payments on a property I currently own. On the other hand, the quickest and easiest way for me to get additional capital to invest is to cash out.

Looking for some sage guidance, thanks!