All Forum Posts by: Aaron Hale

Have you placed it ovvver int the BP Marketplace yet? 

Hey BP,

I am self-employed and recently purchased a property in cash with cash from my business account. With the BRRRR strategy in mind. The rehab costs have crept past what I had budgeted and am looking for some creative was to complete the project.

My first question is; what documentation do I need to show that the business loaned me the funds so that I can deduct them from my taxes? Second, since I paid cash, could I qualify for Fannie Mae’s delayed financing exemption cash-out mortgage now to complete the rehab?

Thanks all! 

 That’s what we’re all here for, Frank. BTW, I cut my teeth buying 1/2mil worth of house I couldn’t afford in 2007 while stationed in Newport. I took a beating! ...and I’d still like to go back.  

Chance, being in the military puts you in an excellent position for REI. First, depending on rank and your command, you could be getting BAH which could be paying down a mortgage. Second, you have access to a VA loan with a low interest rate and possibly no down payment.

Instead of living on base, you could be doing what many in the military have done and I wish I had learned long ago, and let the power of your service benefits catapult you into real estate. Plus, though there is an expectation of being the primary occupant in the property to qualify for the VA loan, the loan can still buy you a 2-4 unit property. Also, as a service member you are expected to move every few years. That's when you can refinance and rent that place out and go looking for another.

There's a whole forum dedicated to military REI. I'd recommend asking some of our brothers and sisters in arms how they did it. Thanks for your service!In the time

That question is far too broad to answer. The United States is enormous and widely diverse in people, cultures, climates, economies, markets, etc. 

A motivated flipper can do well nearly anywhere but they would have to know their niche market. The only advice I could offer you is for you to visit and find a location that you truly love and would like to settle down in. Then, have a go at REI by learning that adopted home very well.

If you have more specific questions such as for a particular region, I’m sure many on BP will be more than happy to help you in your research. Best of luck! 

I read this tripe this morning. Since win are late fees a new thing? 

Hi, Daniel. Thanks to your wife for her service. I was stationed in Italy for a few years while in the Navy. Terrific experience!

I’m originally from Akron and am partial to NE Ohio, but you’ll do well in either market. Cleveland is a bit closer to Buffalo.

Try @James Wiseof Holton-Wise for the best start in the Cleveland market.

Best of luck with the PCS! 

Ok, I”m getting some updated information but still nothing other than texts from my GC. 

So, this place is 9 units, 4 occupied at $850 each. The other 5 units need $28,000 each to bring up too market and another $7,000 for common areas.

It is in a C+ neighborhood and is trending towards the nearby B neighborhood.

I'm still waiting to hear back on operational costs, but this starting to look like a candidate for HML.

 $280,000

+$147,000 rehab

=$427,000

Say I can push the rents up to $900 after improvements, that’s $97,200/yr before subtracting taxes, vacancy, operating costs, etc.

How would I find the Cap rate for the area to find out the ARV? Any other thoughts?

Hello All,

My contractor currently working on an SFR for me is also working on a 10 unit for another client who's looking to sell. he tells me that it is 50% occupied at $850 per unit and he'll have the rest of the units and the roof complete soon. The owner is asking $280,000.

This sounds pretty good to me but large multifamily is outside my wheelhouse. Besides the fact that my working capital is tied up in the SFR right now and I'll need to dig up a rich uncle to make this deal work, where do I start to find out if this is a good deal?

•Is there a due diligence checklist?

•Is there a way to calculate possible financing?

•If I find a rich uncle, what would be a good way to structure a loan or partnership that would be attractive to him to get this deal done?

•If my family tree is broke at the moment, what would be attractive seller-financing terms that I could suggest to the seller, at least for a short-term bridge to refinancing?

•Any other thoughts/advice are welcome.

Thanks for your help!   

 I did, thank you, but I’d still be happy to let your contractor bid on our next project if you’re happy with their work. Please, PM me with the information.