All Forum Posts by: Arpan Patel

Hello, my name is Arpan Patel and we are fix and flip and BRRRR investors around Chicago, IL. We have extensive flipping experience (sold 6 homes last year with another one this year already sold and have another 5 on the books and a combined 19 years experience - 12 for my partner and 8 for me) and extensive turnkey and property management experience (my partner from 2000-2008 sold then managed 50 SFR units in the south side of Chicago). We are looking for investors who would like to partner on acquiring and holding rental properties in C+ to B+ areas (Suburbs not the south side of Chicago anymore). We have multiple short term lenders lined up along with and 5 intermediate term lenders (who can do cash our refinance loans with no seasoning) to can pull out all the initial investment in the deal while still retaining 30% equity and 1.2 or better debt coverage. We will find, fix, tenant and manage the tenant and asset along with the managing the financing process. We are looking for investors who have 50-60k, good credit to be our 50-50 partner for long term holds. This is for people who want to build a portfolio of rentals and cash flow by recycling capital. We are not looking for those who only eventually wants one or two units. Email or call me if you are interested. My contact information is on my profile. Talk soon!!

An attorney and then a CPA. The attorney will operating agreements you can use and they can modify for what you and your uncle specifically want to start with. The CPA will make sure you are taxed and reporting properly. You can go from there with something solid you both can point to for roles and responsibilities. I hope that helps

Also, save save save. You'll need that when you can actually start. It's gonna be rough but play the long game!

If this if your first deal... I don't recommend it. My parents were saints with me and I made a ton of errors with their funds. They still stuck with me but man... it would have been better for me to get a better job, cut expenses, and saved up to give it a go myself first. I would have saved my parents big time. I don't think that would be the best. Make mistakes with your own capital first - don't do what I did. It's all good now but it could have been so much worse and so much better had I played the long game. The only thing I would say is if you just buy a rental with no work needed and no tenant in place then okay. That might work but be super super careful. 

Yes it's high. That is a 10% interest only loan or like an 8% 30 year am loan. That is pretty high. You might be able to afford it but why would you want to pay that high of a rate even if you could?

Also I don't see Property management. Even if you are doing it, you should factor in that cost because maybe one day you will not want to do it. Keep that cost in there if you can. It looks like you will be able to anyways with a 1.64 debt coverage. That will drop when you get a healthy vacancy and the PMI in there. Good luck!

I would get leverage as most real estate guys love leverage. First, what strategies appeal to you? Then, what areas would you like to be in? What type of return are you looking for? Start there and then you can evaluate if something is right for you or not but otherwise you will have shinny object syndrome in this game. There are so many ways to make money in this game that you really need to focus but start with what you find interesting.

Depends on the numbers like anything else. What are you looking to do with that money? What are the numbers of that deal? What interest rate will your life insurance charge you to borrow for youself? What are those transaction costs? There are many questions I can think of before making a decision. I also live in the area so I get the neighborhoods here. Let me know

Yes. That. Do that where there isn't any rehab. You can just rent it day one and start making money. 

If you can then great! I don't think you can shove the total bill to an equity partner unless that was the agreement. The best way - in my sole opinion - is to get a somewhat newer unit that you can rent right away the day after you purchase. Do that a few times and then start doing projects that have light rehab and still hold on afterwards. Around the 6th or so then maybe try a small flip and see how it goes. That is what I wish I did.