All Forum Posts by: Andrew Bondarchuk

Great work @Kyle Penland! Just out of curiosity, do you know the new value of the property? It sounds like this is a buy and hold for you but since this was such a great deal and a low cost rehab, there might be some equity to tap into to fund your next project!

0 Votes

@Kellen Bradford

I haven't done one yet myself but when I do, I'm definitely starting with one. From what I've read from other peoples' experiences, things come up out of nowhere. It would be devastating to overextend yourself and have the unexpected occur on FOUR projects, to the extent that you are unable to rent them and now you are stuck with four house payments, insurance, taxes, etc. and I assume you plan on having a primary residence, so five payments. Also, you probably would have financed a lot of the repairs, so you'll be paying project loans as well. $100k won't last long in this scenario.

Have you considered starting with a quad-plex, renting out three units and living in one? You would essentially be living for free since cash flow from the other three units should cover your payments. Then, when you are ready, move out (perhaps into another multifamily) and rent that last unit. If you are eager to get a bunch of rentals under your belt right away, this sounds to me like your best bet.

Whatever you do, keep us all posted. Good luck!

0 Votes

Originally posted by @Jared Christensen:

I have a couple problems holding me back. First and foremost is my bank, my credit is used up according to them. My income to debt ratio doesn't match right do to borrowing my wife's business a bunch of money and we get paid back monthly but it doesn't get to count as income or as money owed to us for that fact. Being she owns her business and I work for her part time and also have rentals and flip houses the bank requires personal and business tax records every time I apply for a loan. Together through business and personal we run $3 million dollars through the bank in a given year but won't borrow me $80000 to buy another rental property. Does anyone else have these type of problems with banks? Never miss a payment or ever late and have over $800,000 in clear equidy. Second problem is time. Having 3 kids in school and in activities it is a real time constraint to run then around all the time. End of rant. Thanks

Hey Jared, I'm curious- if you have $800k in equity why not just tap into some of that to fund your next project instead of relying on a bank for an $80k loan? I read and hear about people doing this all the time.

0 Votes

Originally posted by @Nancy Brook:

Originally posted by @Brandon Heath:

Congrats @Nancy Brook

Just to clarify your response to @Andrew Bondarchuk, a local real estate investor offered a class to teach you some great tips for a direct mail campaign? Do you mind if I ask if it was postcards or letters? Also what did the timeline look like with your campaign, did you do one large blast and wait a few months? Or did you consistently continue mailing over a longer period of time?

Thanks for the well wishes, Brandon!

I didn't get training with a local investor but someone who is an expert at virtual wholesaling. My goal is to be able to live anywhere and not have to do things like look at the properties or meet with sellers. I do everything via phone and email and have my guy on the ground to take care of home inspections, repairs or whatever else is necessary. I also have my attorney who has a title company take care of closings. All my closings are mail away.

I paid for training with expert who is not local. The money I spent is well worth it as I got up to speed rather quickly and have already closed on two deals and have two more under contract which should close in August. My expert recommended postcards, though I'm sure letters will work as well. I think the most important part is learn a technique from someone and follow their system until you start getting results. My advice is to find someone who is kicking butt and is willing to train you. Many successful investors will not take on training clients as they are busy with their own deals. Then you can play around with different techniques.

In terms of mailing, I found it best to split up mailing so I have a consistent stream every week. I'm sending out about 500 postcards on weeks when I am doing my calls. I use the same list twice to save on pulling a new list every time, which can be expensive. DO NOT wait a few months. You need to gain momentum and that requires consistent mailings/calls.

Hey Nancy, great advice. Thanks! How did you go about finding a mentor? I wanted to sign up for a professional RE trainer but they wanted $30k for the program before any traveling or marketing expenses that would be involved. Needless to say I backed out but I do see the benefit of having hands on professional training so long as it is affordable. Wholesaling seems very complicated to me and I would be reluctant to break into it without some sort of guidance.

0 Votes

Originally posted by @Account Closed:

Hi,

Thanks for reaching out. I currently live in Manhasset but grew up in Commack which is between Smithtown and Huntington. I took ferries out of Orient Point but unfortunately its been a while.

Do you invest in rental properties on eastern Long Island?

Tom

Hey Tom,

No investments yet. I'm new to the idea of REI and just jumped on BP about a month ago. I'll be looking to invest in the Tampa Bay Area when I am ready and I have found a deal. I'm planning on buying a list and starting by a direct mail campaign and in the meantime I'm studying to get my RE sales associate license.

Are you currently investing or looking to invest in your area?

0 Votes

Congrats @Nancy Brook! I'm about halfway through the RE course and looking forward to the test. The unit exams have been easy but I imagine that will not be the case for the state exam.

Also, great job on acquiring two more properties! I have been moving my finances around to free up monthly funds and I am planning on purchasing a list and doing direct mailings. I'd love to know: is this how you got started and do you have any tips for the lists and/or strategies that worked for you in the beginning?

0 Votes

Welcome @Account Closed! You will gain a lot from this community. I'm here learning something new every day.

What part of Long Island are you in? I'm from Suffolk County - a small town called Orient Point at the far east end of the North Fork. I've been in Florida for the past ten years.

0 Votes

Thanks @William Boudle! That's a great idea, especially here in Florida where the constant humidity can create mold problems.

0 Votes

Hi everyone!

I wanted to breathe some new life into this thread, mainly because I need to differentiate it from a request for ideas on creative financing. This is the reason I am posting in the "Off-Topic" forum. I have Brandon Turner's book and I regularly visit the creative financing forum, but I was hoping for a different discussion here.

I wanted to know, outside of financing and finding partners, lenders, etc., if anyone had ideas to share about making some extra cash on the side, or stories of how they did it, unrelated to REI. Of course the reason I am on BP is to get into REI, however I would still be interested to learn how others may be or may have been "on the hustle" like myself, thinking creatively and working different angles to create income streams.

If there is no one out there thinking about this, I am fine with that and I will stop asking. :)

Thanks!

1 Vote

Originally posted by @Maggie Tasseron:

Originally posted by @Patrick L.:

Personally it wouldn't stop me form buying it but I'd give him the required notice to terminate his lease in January and have him out in Feb as soon as the lease is up. I wouldn't approve an app with those type of charges and having an offender like that will make it hard to attract and keep quality tenants. It's not a permanent issue so I don't see any reason why it would stop you from making an offer.

That was my first thought as well, but then I got to thinking if he were the only tenant you evicted, he may pull out some discrimination defense. I don't know the laws on renting to sex offenders so anyone in this position may want to first check that out.

The Fair Housing Act names 7 protected classes. Sex offenders are not among them.

1 Vote

All Forum Posts by: Andrew Bondarchuk

Andrew Bondarchuk has started 7 posts and replied 78 times.

Post: My 3500 Property that no one else wanted! Before and After!

Post: buying 4 fixer uppers at once

Post: What's holding you back in your real estate investing career?

Post: My excellent day: Two deals and passed my real estate licensing exam!

Post: New BiggerPockets user from Long Island, NY

Post: My excellent day: Two deals and passed my real estate licensing exam!

Post: New BiggerPockets user from Long Island, NY

Post: Creative ways to raise capital

Post: Creative ways to raise capital

Post: Would you buy an 8 unit with a sex offender as a tenant?