All Forum Posts by: Adam Wigdorski

@Khaled Morad

Thanks man. Like I told you way back when. Move at the pace of a turtle. Slow, strategic, and steady

@Jesse Ottesen

Why not just do a term and rate commercial mortgage refi into your llc?

@Solomon Fulop

Why would you not recommend investing in buffalo?

I have 47 units in buffalo , have never had to evict, never missed a payment, and 50% of my cashflow if I choose can support more than my paycheck.

@Victor Baronich

No offense to your business plan but my experience has been Sfr’s unless your doing air bnb are trash. At a minimum you may want to shift to doubles. Or sell and 1031 the whole boat to a small multifamily unit.

So i own a decent sized portfolio. I can across another portfolio that me and the seeker came to terms with. We both decided on a Master Lease 5 year term with buy option.

Question

Upon exit of the master lease , in the eyes of the bank would this be a refinance or straight purchase.

Example.

Owner owes outright.

Lease buy option purchase price of 2,000,000

Now after I complete 50% renovations and Re manage rents the potential value of this deal will be worth 3,000,000-3,500,000.

My banks will give me an 80% ltv note any day of the week.

Upon executing the buy option will I need to bring 20% liquid to the table with the bank or will they use the built in equity difference between the buy option price and appraised current(5 years from now value)

I’m no analyst but definitely do not think any housing crash will come. Banks are not lending at 120% ltv. People are not overpaying for houses. There buying houses that they can afford do to low interest rates. As rates raise select people will have to buy at lower price points. Yes there will be influx of “Covid” default that was coming anyways. The feds interest rate projects out there rate back to pre Covid which is 2019. Plenty of us were still buying houses in 2019

So i own a decent sized portfolio. I can across another portfolio that me and the seeker came to terms with. We both decided on a Master Lease 5 year term with buy option.

Question

Upon exit of the master lease , in the eyes of the bank would this be a refinance or straight purchase.

Example.

Owner owes outright.

Lease buy option purchase price of 2,000,000

Now after I complete 50% renovations and Re manage rents the potential value of this deal will be worth 3,000,000-3,500,000.

My banks will give me an 80% ltv note any day of the week.

Upon executing the buy option will I need to bring 20% liquid to the table with the bank or will they use the built in equity difference between the buy option price and appraised current(5 years from now value)

@Tristan Moylan

Take half and invest in a low expense index fund and you’ll have your retirement set day one.

Take the other half and leverage I real estate deals. 150 can buy you $750k worth of multifamily.

So I know real estate. I find deals. I have money. I have access to debt. I have people that will give me money to “partner” on a deal.

I can’t wrap my head around on how to offer or structure this silent partner his payout. Obviously in x amount of years I’ll have to give the principle. How do you structure to offer their return.

Hypothetical deal.

4,000,000

I’m coming in with 300k and they are coming in with 500k.

Say I promise that they’ll receive a return on investment of 8-10% as a silent non managing partner.

I will buy them out in 5 years.

Do you give them a quarterly payment

There not getting equity in the deal unless we sell in year 0-5.

How do you like write up this offer to them formally?

@Shiloh Lundahl

I get your point as most follow everything they hear on these podcast to the t.

The east answer to make yourself the outlier is to don’t accept 200 a door cashflow. I myself Hoover around 500 a door cashflow or I won’t buy the property. Even with owning 32 doors i still stick to this model. To much work and to tight of margins to buy an investment property and only cashflow 200-400 bucks. With those margins you’ll never recoup your down payment or really build up your rainy day fund for when your going to need that new roof.

Just my opinion