All Forum Posts by: Andrew Freed

@Brook Davenport - I agree with all the other sentiment... why wait if you get a solid deal! The more successful people you chat with, the more you will realize that all of them skew towards action over analysis. I'd rather push the ball forward now with known variables than wait until something happens in the future outside of my control. Take control of your future and start taking action! 

@Elias Camhi - Is this a new regulation? Hasn't this been around for a while or are they making some dramatic changes? 

@Jason Boring - Jonathan Greene made some solid points! With hard money, there are lenders out there where you only need to bring 10% of the purchase price and they cover 100% of construction. This allows your dollar to go that much farther. There are limitations such as you need to find deals that are 75% of the ARV all in cost once completed, nonetheless that is very feasible with deep value add deals.

Additionally, I disagree. There are good value deals in your market if you search hard and long enough, it sounds like your lead source could be revamped in my opinion. Best of luck on building your portfolio. 

@Michael Steele - I say understand your partners goals. What is your partner's vision in 1 year, 5 years, 10 years from now? Do they want to create a certain amount of cash flow, have a certain amount of properties, quit their W2? If you find out what their dreams are, perhaps refinancing can align with those dreams if you position it the right way? Maybe commit the refinance funds to buying another property at a much rate of return than the loan and your partner will see the benefit in refinancing? Hard to provide advice without more details, however that is probably the approach I would take. 

Unforuntately I've been in this position in the past and it's better to keep the partnership in a good space than to force your hand on an issue like this. In my situation, we kept the property in the current loan which has been a nice cash flowing asset for both of us. 

@Kim Huynh - Yes, never a good idea to pick a fight with the city. See if you can get a certified fire alarm professional to be an intermediary for you and the fire marshall. Since they know the code more, fire marshalls tend to work with them to come up with solutions that work for all. That is why I do when I run into these issues, hire a professional to take the lead on it. 

Welcome @Nicholas Foutz! The more work you put into real estate, the more success you will have. That means reading as many real estate books as you can, listen to an endless amount of podcasts, attend as many meetups you can, and try to find a mentor by finding someone doing what you want to do at a large scale and provide them value (expecting nothing in return). These are some really easy steps to push the ball forward and provide opportunity in the real estate space! 

@Reesey Ann - To this point, you might want to invest in some security measures to ensure this does not happen again. Possibly locks, ensuring all the windows are closed, putting up no trespassing signs. If it becomes a bigger problem, you may want a camera. 

At the end of the day, that is life however to Stuart's point, you may want to consider investing in better areas where this does not occur normally if this is an unsettling occurance for you. 

@Cody Holt - @Nathan Gesner broke down your options really well. Either do a cash out refinance or HELOC for the down payment on the other property. If you plan on moving and keeping the other property as a rental, it's imperative to ensure that the revenue from the rental far exceeds the debt payments from the new refinance since you don't want to create a negative cash flowing property, aka a property that cost you money each month. The purpose of real estate is to build a portfolio of assets that pay you each month, not cost you money each month. Otherwise it might be better to repurpose the equity into something that can do that.

@Allende Hernandez - I'd definitely look into separating the utilities and putting the cost back onto the tenants. That is the ideal scenario for this investment.

On a side note, you cannot have a tenant foot the utility cost of other units, that is illegal. They are essentially paying for usage that isn't theres. You either cover the utilities for the entire building or separate the utilities. You can also attempt some sort of bill back like RUBs but that can get complicated quickly. Good luck with your first investment property. 

@Mark Esperti - I also recommend checking with prime insurance, they work a lot with investors and can really find the right product for you. I utilize them on all my rentals in Worcester, over 200+. 

Also, one of my buddies owns a ton of student rentals near clark. Happy to make an introduction, feel free to shoot me a DM.