All Forum Posts by: Anthony Catoni

@Jazmine Kravitz Awesome, that makes perfect sense! 

Hi Jazmine,

I am also looking at investing out of state. Can you share how you decided on Indianapolis? Do you have any insights or processes for how you pick a city? I created a checklist of lending options I have discovered and understand so I don't have to remember every single one. It serves two purposes for me...first when I'm looking at a deal I can pull the list out and get my mind jogging at how I can potentially finance the deal and second, once I pick a financing option I can put all the terms down and when the deal is closed I'll put it in with the other necessary documents. I'll DM it to you. If anyone else is interested, let me know and I can send it to you.

Hi Everyone,

I've never purchased a property to use as an AirBnb so this is all new to me. If a property won't cash-flow positive as a LTR, but will crush it as an AirBnb (based on numbers from AirDNA) is it worth purchasing? Is AirDNA reliable? After all expenses (mortgage, taxes, insurance, repairs, maintenance, capex and 20% management) it'll cash flow $750/month. Any and all advice with this would be great!

Thanks,

Hi,

Looking to connect with a contractor servicing the Columbia, SC area. I have a duplex I am looking to rehab and would like an estimate. I look forward to connecting!

Anthony Catoni

Hi Everyone,

I am trying to work seller financing with this deal, but don't know how to try and convince the seller it is a win-win for both parties.

The Property: 3 beds/1 bath

Listed for $285,000, seller will accept $265,000 according to agent. It needs quite a bit of work and would not qualify for traditional financing. 

The Seller: 74 years old. She has some cash offers on the table, but isn't really in a rush to sell and wants to try and get as much as she can. She is living in another city now. According to the agent, she isn't interested in seller financing. I asked him if he would present my offers to her regardless and he agreed. Waiting to hear back now. 

My Proposals:

I sent over 3 separate offers. The house will need about $100,000 of rehab before it can be rented out. Comps in the area are going for $350k - $365k. My proposals used an ARV of $350k, with all in budget of $245,000. Rental comps in the area are going for $1800-$2100/month. The area has seen significant demand and growth over the past few years and is a prime area to capitalize on significant appreciation. With the seller financing, I would pay her the "mortgage", use my own money for the rehab and then the refi is open to few options. I could continue to pay her the "mortgage" and just refi the rehab as a mortgage. Doing this will give me $145k leftover to leave as equity, pull out for another deal/HELOC. The other option is to refi the seller financing and the rehab altogether.

1. Offer 1: Cash Offer
   Amount - $145,000
   Follows traditional financing (inspection, closing procedures, commissions, etc.)
   Offer 2: Seller Financing with no down payment (terms negotiable)
   Monthly payment to seller: $778.39
   Term: 30 years
   Interest: 5%
   Amount to be paid after 30 years (including interest): $280,000
   Lien Holder: Seller
   Tax burden is less, potentially no tax implications for seller
   Monthly payment paid to seller
   Willing to continue to pay estate if seller passes (AKA no refi on the seller financing)
   If monthly payment not made, house goes back to seller
   Commission will be paid to realtor
   Offer 3: Seller Financing with Down Payment (terms negotiable)
   Monthly Payment to Seller: $739.47
   Term: 30 years
   Interest: 5%
   Down Payment: $7,250 (Negotiable)
   Amount to be paid after 30 years (including interest): $273,459
   Lien Holder: Seller
   Tax burden is less, potentially no tax implications for seller
   Monthly payment to seller
   Chunk of money given upfront
   Willing to continue to pay estate if seller passes (AKA no refi on the seller financing)
   If monthly payment not made, house goes back to Joy
   Commission will be paid to realtor
   

The Dilemma:

How do I convince the seller this could be a win-win for both of us? How do I go about educating the seller? I do also understand at the end of the day the seller just may not want to do it. The property will cash flow positive with the seller financing options and cash offer. The cash offer is my least favorable offer because I don't have all that cash and she has higher cash options on the table. This would be my first deal if it works out. I am also working to use seller financing on another deal I am looking at. 

Any and all feedback would be greatly appreciated!

@Bryant Naylor I just sent you a DM. That's awesome man! Let's connect.

@Rongsu Qi

How long have you been in the Tampa area? Are you with a brokerage yet? With your investments, have you focused on SFH or MFH?

Hi @Alberto Nikodimov,

Awesome! I just sent you a message. 

Hello Everyone,

I am looking to connect with investors, wholesalers, hard-money lenders, realtors and contractors in Florida. I am looking into Orlando, Sarasota and the Tampa areas, but I am open to others as well. I am looking to BRRRR and/or BRRRRnB. I currently live in Columbia, SC, but am originally from Orlando and have lived in the Sarasota/Tampa areas. My goal for 2021 is to acquire 3 rental properties that cash-flow at least $100 with a target ROI of 10-12%. If there are any Facebook groups or meetups, please let me know. I look forward to connecting!

@Kirbi Campbell

My wife and I will be moving to Europe in October on military orders. With that being said, here are my goals for 2021:

1. Find and lock down recyclable funds aside from using our own savings money. Examples: HELOC,BLOC, PLOC, partnerships, private money, hard-money, etc.
2. BRRRR (LTR) and/or BRRRRnB(STR) four properties with an all-in cost of 70% ARV by October. Bare minimum ROI of 8% with target ROI of 10-12%. Bare minimum cash flow of $100 each with target cash flow of $300-$400 each.
3. Generate enough passive income to cover half of our monthly living expenses (~$1500), with our ultimate goal of “getting out of the rat race” by 2022.
4. Find and research 3 new U.S. markets to invest in while overseas. This process includes networking with agents, lenders, property managers and contractors in each market.
5. Since I won’t be able to work overseas, intern with a successful real estate investor to help them and also learn and grow myself.
6. Explore Europe and create new experiences with my wife.
7. Continue to increase my skills, education and confidence in real estate investing (couldn’t have worded it any better @Trevor Andersen)