All Forum Posts by: Aristone Louxz

Same here! I sent you a request with a message. Let’s connect I’m always looking for off market deals. 

Hello BP Community, 

Currently I have been buying and flipping properties in and around the Philadelphia area. I have been offered an alternative investment opportunity to flipping. First, here's some background on our current model.

 As of this year we have locked in 5 projects and completed 3 of the 5 (East falls and queen village one to be completed this month other to be completed by Jan-Feb). My financing structure now is 90% of Acquisition and rehab financed with Hard money. The remainder closing cost, down payment etc  is financed by a partner who I offer a 20% return on their money. That partner also offers a line of credit for construction draws and that line of credit is paid off with each reimbursement I get from the construction draws of the hard money lender.  Essentially I am 100% financed for the flip.

I like this flip model but I have been offered 100% financing for buy and hold projects instead of flips. Here's the structure, the project must have 25%-30% value added Example : we are all in  (acquisition, plus rehab, closing cost, holding costs etc = 200K the Value created must be $50k or greater). I will be finding the off market properties, once we acquire the property I own 10% from the get go, once property is remodeled and appraised I own 25% of the Value created. I also get the whole remodel project which can be another opportunity to make money with my team Lets say $10k at the very Least. So using the previous example, All in $200k but the property is worth $250k I own $10k equity once we purchased the project (assuming we bought it for $100k for easy numbers sake), I then do the remodel and create $50k in Value. Now I own 25% of that $50K which is $12,500. Total ownership  $22,500 in equity and $10k on the construction end. 

Now After this He offered to either cash me out or roll it into the next project....

Is this a good deal? Has anyone done something similar? Should I negotiate any terms? Would anyone cash out or roll it into the next project?

Thanks BP Fam! Looking forward to the responses!

I’ve done partnerships with many family and close friends. What’s made them successful is what they lacked I made up for and vice versa.

If you’re just starting out try to find someone who is going to add some type of skill to deal that you don’t have. For example a family member who is a contractor, plumber, carpenter etc, Maybe someone who you know is going to add more time to managing the property that you may not have. In the beginning it’s best to keep it as simple and small as possible and grow from there. If it goes well continue doing more if not then have that exit strategy ready to go! 

It seems like a no brainer to me! The value add is in the potential extra income from the commercial unit. Plus I assume you’d save on paying rent for the comercial space yourself? There’s also a possibility of remodeling the residential units and adding value there. Additionally it’s a great location. Sounds like Perfect timing, I say go for it ! 

I sent you a DM!

I own a Duplex In upper Darby PA. It’s a great location to buy and hold and rent. The property taxes are a bit high but I made up for it with rental increase and minimal updates. One thing is upper darby Varys block by block so definitely scope out where your buying cause some parts are worse then others. What caught my interest about upper darby is the demographics and there’s not so many run down homes and abandoned homes as there are in parts of Philly that have the same price (we bought it for $215k). Also many of the duplexes we were looking at in Philly in that  were in the $215k price range were illegal duplexes.  

I just did a flip in Sharon hill too we like that area. (1550 Lincoln avenue). 

Another thing to note is Darby and upper Darby are completely different. I’m not a fan of darby but I would invest in upper darby. do your due diligence! 

Feel free to connect anytime! Best of luck. 

My wife and I recently purchased a property with the intention of flipping it. We financed the property with a Hard Money loan. When she walked through the door, she fell in love with the house.

We as well, are currently on the market searching for a primary residence and are preapproved for over the ARV of this home. We purchased the flip with an LLC (3 members, one a investment partner other two are my wife and I) and we are wondering if it's possible to sell the property after repairs to ourselves with the intention of using the Home as a primary residence. We would of be purchasing it with a conventional bank loan we've been pre approved for…

Is this possible?

@Jon Liang Great idea thinking of out of state investment since your living in NY. My first investment was across the bridge in NJ when I was living in NYC for that same reason, everything was way out of my price range. Where in NY are you? I would try looking at states or distances within a 1 hour drive at most for your first investment.

Hello BP Community,

I have a 3 unit residential property in West New York NJ. Due to COVID 2 of the units were not able to Pay April’s rent, (one owns a barber shop which has closed and the other owns a restaurant which is closed as well).

I understand these are times of uncertainty but what are other landlords doing in these situations?

Do I apply late fees? Do I apply their security deposit to their balance for this month? What happens when next month comes and they still cannot pay rent?

I know it’s hard to tell what the future holds since everything is changing day by day but I just would like to know what other landlords are doing in a similar situation.

Best,

Aristone louxz