All Forum Posts by: Aaron Bard

My first question regarding this involves raising capital to invest in deals. I'm not a fan of the idea of borrowing money from family members, and have never been keen on the idea of borrowing anything from anybody. I would rather do it myself. But what are some slower, beginner ways that I could start raising capital to buy more real estate?

My second question: At what level of investing are boutique hotels a good idea? I have a lot of interest in the boutique hotel space and have found an on-market property near me with huge potential and lower entry cost than any other deal in the area. This then wraps back into the raising capital dilemma, as that is the major component that I'm missing.

I know this was a post full of jarbled thoughts and questions but if anyone has even a shred of insight or advice, that would be much appreciated!

Thanks!

-Aaron Bard

0 Votes

Portland, Maine

Quote from @Eddie Gonnella:

Hey Aaron, have you considered a commercial mortgage from a local bank like First National or Bangor Savings Bank? I'm happy to introduce you to folks there. Machias Savings Bank as well. Commercial mortgages are really DSCR loans. The "DSCR loan" world is really just a spin off of commercial banking. In my experience, the local banks are going to get you better rates and lower fees with their commercial loan products than the "DSCR lenders". There is a time and place for DSCR loans, depending on exactly what you are looking at. They usually come with fairly steep rates and high fees/points at closing. I'm happy to get together with you again about this newest spot you are touring and give you my 2 cents on how I would finance it. Some of the other lenders mentioned in this thread are more so private lenders / hard money lenders and while they may underwrite based on DSCR, I don't think it is the DSCR loan you are looking for. If you are looking for a hard money loan for a rehab project, let me know. I'll introduce you to the owner of MR Qualified Alternatives. I've done about 5 hard money loans with them.

Thanks for more great advice Eddie! I'll let you know what I decide for lending. In the meantime it would be great to catch up with you over coffee again!

1 Vote

Portland, Maine

Quote from @Nathan Harden:

Bro... Take this deal and run.

Remember to take out money for vacancies, repairs, management (if needed) and CapEx.

That being said. Good seller finance deals are worth their weight in Gold. They do not grow on trees so when you find one, even a decent one, take it. Not every hit has to be a homerun.

You got it, Chief.

1 Vote

Portland, Maine

Hi everyone,

exciting News!

I found an off-market deal in my area and the seller is a lovely retired snowbird who is very willing to consider seller financing!

The Numbers (rounded up):

6-unit multifamily property.

Asking price - ~$450,000

Gross rental income - $6,075

Insurance (yearly) - $1,311

RE Taxes (yearly) - $3,980

Heat for Lobby and Hallways (Winter Average) - ~$700

Water & Sewer - Unknown

Deal Terms (to be proposed)

2.5% down in cash at 4% interest on a 15yr fixed. Seller financed.

Closing fees are undecided.

According to my math, this leaves my monthly payment at $3,245 before taxes and insurance.

Math

$6,075 - $3,245 - $109 - $332 - $700 - ($150 W&S)

= $1,539 cashflow p/m

Any other eyes on this would be much appreciated and I am grateful for any advice given.

Thanks!

0 Votes

Portland, Maine

Hello!

I just found another deal and am touring it with my agent shortly.

I was recently messaged by a representative of Easy Street Capital about DSCR lending. I was wondering if anyone else in the BP community has used this company for their investment lending.

I cannot achieve another low-money down loan until the end of 2024 when the seasoning period of my FHA loan runs out, so I'm looking for other alternatives.

Thank you for any help!

3 Votes

Portland, Maine

Quote from @Daniel McDonald:

Tough since we are on the forums so you never know who is listening 😂 but I had it when I was looking for my first house hack then I didn't find it super helpful. I ended up building my own calculator which I think a lot of people end up doing once they get the hang of it. However, I do agree BPs is really solid. That was really all I was using it for, I agree the cost really isn't a big deal but it was one of those subscriptions I just didn't need.

My goal this year is to organize my business better. I've started using Stessa which is a free property management tool. You can pay extra for the bells and whistles but you can store all the lease info and it will make taxes much easier. That's the tool I am most excited about.

Thank you!

0 Votes

Portland, Maine

So here I am. Less than 2 months into my first house hack, and in the midst of moving, renovating, and searching for more deals; keeping track of my tenant's signed paper leases is already proving to be a struggle.

My question is, should I go all-in and join BP Pro?

-The cost is negligible and would pay for itself in the form of time savings.

-I'm constantly searching for deals so the calculator would be invaluable.

-With RentRedi included, I could accomplish all of my property needs easily.

BUT...

Is it the best option? Is there other software that is more efficient or works better? Is there a better calculator somewhere?

I know I'm asking this on BP, but I trust that fellow members here will give me unbiased information, as they always have.

So I'm asking other members of the community to give me some pros and cons lists of different softwares and such.

Any feedback is much appreciated!

Thanks!

0 Votes

Portland, Maine

My question is, should I go all-in and join BP Pro?

-The cost is negligible and would pay for itself in the form of time savings.

-I'm constantly searching for deals so the calculator would be invaluable.

-With RentRedi included, I could accomplish all of my property needs easily.

BUT...

Is it the best option? Is there other software that is more efficient or works better? Is there a better calculator somewhere?

I know I'm asking this on BP, but I trust that fellow members here will give me unbiased information, as they always have.

So I'm asking other members of the community to give me some pros and cons lists of different softwares and such.

Any feedback is much appreciated!

Thanks!

1 Vote

Portland, Maine

Quote from @Bud Gaffney:

You know my favorite deal is???

THE NEXT 1!!!

Congrats and keep going!!!!!!!!

Yessir! Thank you!

0 Votes

Quote from @River Sava:

Hi Aaron, congrats on your first property!

I am not too far away in Boston. Are you thinking about a next investment? If so, would you stay up in ME?

Hi River!

Yes I am already thinking about another investment property. I'm looking to invest more in my area, and hopefully in Lancaster, PA in the future!

0 Votes

All Forum Posts by: Aaron Bard

Aaron Bard has started 24 posts and replied 71 times.

Post: Double Question: Raising Capital and Boutique Hotels...

Post: Easy Street Capital (Legit or No?)

Post: Need more eyes on these numbers

Post: Need more eyes on these numbers

Post: Easy Street Capital (Legit or No?)

Post: should I spring for BP Pro?

Post: should I spring for BP Pro?

Post: should I spring for BP Pro?

Post: My first deal!...finally!

Post: My first deal!...finally!