All Forum Posts by: Alex Buffone

Looking for wholesaler recommendations in South Jersey. Reach out if you know anyone or would like to work together!

 For your first question yes, there would be a "regular" loan as first and hers as second. 

Your second question I failed to mention her first choice would not be to hold the loan but would do it. So the earlier to pay her back the better for her. 

Finally, yes the deal makes sense now and based on my numbers I would get a cash on cash return of approximately 10% which is my minimum threshold as well as not having a large down payment. The deal is near Rowan University, as I see your are from NJ as well. 

You are right. I appreciate the response. If you were in my position do you think pushing for the seller to hold a note for 10 years with some type of condition, say rates fall below a certain percent I would refinance would be a good proposal?

I recently was brought a deal in the same location as two other properties I have near a major university. The seller needs to sell her house (divorce) and is willing to hold a note for a part of the purchase price. 

She has about $100k on her mortgage and needs that paid off, the rest would be seller finance, a large bank is willing to finance the 100k. The purchase price is slightly higher than I would like to go (~25k), but the deal would make sense in the short term, if she holds a note at a low rate and long term when rates drop again I can refinance. 

My concern is where the economy and real estate will be in 5-10 years. It is enough time to see rates drop for example, but will banks be stricter with mortgages, will rates fall. I believe we still will go into a recession in the near future. Let me know your thoughts, would be greatly appreciated!

I currently have two properties on 30 year fixed mortgages, one is at 3% and the other is at 3.5%. I recently converted the garage into two bedrooms and one bath on the property with the 3.5% rate and is now cash flowing at about $1,500 a month. I have a commercial banker who could refinance both loans into one. I would expect to get around 50k in sweat equity back from the one property plus anything extra from appreciation and equity I already have. I have held the properties for over a year. My thought was if I can get enough equity back to buy another deal which would cover the extra interest, which I have been told is from 4%-4.5%, it would be a good move because I would acquire another property and the extra interest would be covered. Does anyone have any thoughts on this strategy or is it worth keeping the current rates/

I have a property in a college town, I am converting the garage into two bedrooms and a bath. My property manager is going to act as the GC/project manager for the project (he is certified and has insurance). He is charging 8.5% of all costs which is approximately 60k, which turns out to 5k for him. Is this an appropriate amount to charge?

@Caleb Brown, thanks for the response Caleb, I think I am leaning towards that side. I think I found a good PM for the property and I want to spend more of my time focusing on the deals until I have a larger portfolio than take them over has you mentioned.

@Shiloh Lundahl haha that could not have be written any better. Thanks for the advice I appreciate it!

@Shiloh Lundahl thanks for the response, but yes my last property I have a 30 year fixed mortgage. Do you suggest finding one or multiple lenders that I can work with in the future for all of my properties? That way I can show them my goals and how I want to get there, so when an opportunity arises I will have financing.

Thank you Jorge!