All Forum Posts by: Allen McGlashing

@Mike Schorah

As a person that is currently heavy into trying to find a property that fits the Brrrr standard in Ohio I am having a lot of trouble finding one, but I do come across a lot and I mean a lot of turnkey properties.

@James Krell

This looks good on paper. You will be coming out of the deal making money after the cash-out refinance so the COC return is infinite. What would the cashflow be with the new 30yr loan? At 80% of the appraised value brings you just under the 1% rule.

With a hard money lender 5% for a 30 yr amortization loan seem about right to keep it in a LLC. I wouldn't risk the 10/1 ARM because I don't think in 10 years the rates will be as low as they are now.

As long as it has PURE cash flows I would pull the trigger using option #1.

@Alex Silang

This is why cashflow is so important I feel. Even during a recession you should be able to pay your mortgage. If you have to lower the rent and just survive that is an option also. 

History repeats itself, there will be another recession and then another boom. I think cashflow is so important to get you through the rough times.

@Yves Bourdeau

I like to put in the contingencies “pending approval from business partner” that will get you out of any deal that you decide isn’t for you or if a better one comes up. That’s straight out of the book “Rich Dad Poor Dad”

The agent you work with should understand investors and should be fine with making low ball offers. They should know that with investors numbers have to work so we will offer at a price that numbers work. You will get tons of rejections, but even if you get only one accepted at the “low ball” price it should be a good deal and make up for all the other deals you lost.

@Russell Brazil

Yes, but he works with the contractors daily and has been through the whole process I’m trying to go through so his estimate has years of experience behind it. That estimate gets me to make an offer then obviously he will have the rehab team come in and give a detailed SOW, but I find his initial input to help out tremendously. 

@Mason Hickman

It makes it hard because as I said this agent works with the PM company I plan on hiring. For example Ill give him a property he will walk through and give me an estimate on the rehab and an ARV which is what I'm looking for to run my numbers, but out of 10 properties he's only done this maybe 3-4 times and I text him daily. Sometimes it takes a good 3 days to get back. As a new OOS investor he's ideally what I'm looking for. I just wish he was more responsive. Idk if I'm sounding too picky.

On the other hand I am also working with a rookie agent that gets back to me within hours and had walked properties for me, but it would require me to do a little more work such as getting contractors to give an estimate because this agent is newer doesn’t have experience with rehabs and such. 

I like the PM and now feel obligated to use their agent. 

I’m dealing with this currently. I have a realtor that is experienced and works with a PM and contractor, but days will go by without a response even when letting him know I want to put an offer in on a property. I understand if they are good they are busy, but I have lost one property so far and don’t want to lose another one.

Yes this is where a good agent comes in, if they are good they will understand what to look for or signs of problems to be. Do your research and get an experienced agent.

@Avinash Dongarwar

I recently just did the same thing. You can setup the LLC in any state and under the question " which state will this business mainly operate in" you can put Ohio. I would obviously check with an attorney, but that's just my experience. I also made sure I did it right by having a professional write it up and submit it.

You have the ability to keep the difference in rent until the lease actually expires in November so $150x3= $450 

$850-$450= $400

$400 is what you need to return or are obligated to return to the tenant. 

Hope this insight helps