All Forum Posts by: Ben Lapane

@Shant Ohan

If I’m looking at a turnkey property I’m also looking at just putting money in a passive multi family deal.

I can still get the mailbox money but I also feel better about my chances to refinance out capital in 3-5 years so I can get into another value play.

The thing I don't feel comfortable with about turnkey property is I don't have a lot of control over my equity position because I bought it at 95% ARV so I have to wait until a CMA tells the bank it has appraised but with commercial property the lead investor really has more control over the valuation based on cap rates.

Does anyone have experience investing in Mobile AL? if so, please share the good, bad, and ugly.

I'm from that area so i don't mind investing out of state if it's in Mobile or Baldwin county.

 As long as it is at The Ohio State University at least there is a good chance your graduating with a natty. You carry that championship year memory with you forever. 

@Mason Adelman

I networked like hell“boots on the ground” and someone believed in me enough to give in to me begging. 

I’m willing to bet there is someone you know who is successful at it who can help you. 

@Dave Kay

In my opinion, the key is to read the loan estimate. Anyone can throw out 2.8 on the front end but when they send you that loan estimate and your fees are crazy high then walk away . I'm seeing 3.6% APR for low fee mortgages with no cash out at 80% LTV in south Texas.

Remember, your looking for the Wal-Mart of mortgage companies, not the Whole Foods of mortgage lenders.

@Mason Adelman

Forget the books and find a mentor/network. I read a ton of books about real estate but didn’t do anything about it. Found a mentor and in 2 months found a home run deal (my first deal).

Only do books if you have no access to money. If you don’t have access to money don’t read books on real estate read books on how to raise money/make money wholeselling/start a business.

@Michael Clark

Thank you for your service.

gotcha. If that is the case then I would work really hard to expand my network and find lenders anywhere in the country that will offer 75-80% LTV. There are tons of lenders in TX that offer up to 80% loan to value but the maximum cash back is 2k. Anything beyond that stays in the deal. After 6 months I can cash out refinance with no limit on cash back but if I'm going from HM to conventional in less than 6 months I'm only getting back 2k maximum. Hope this helps!

I live in Texas and think the appreciation rate/barrier to entry ratio is very strong (totally my opinion) 

What do I mean? Everyone is super bullish on California real estate which drives up the entry point price. 

Texas also has good appreciation rate but the entry price is much much lower on average compared to California. 

are there better areas? Probably. But I live In Houston so I would rather just stay closer to my assets, which is totally up to the individual.

@Luca Mastrangelo

Whatever you do not sell. The capital gains tax will be sticker shock since you don’t plan to use a 1031 exchange. If you need money refinance some out (tax free) but do not sell and pay capital gains tax

I don’t agree with people’s numbers on this thread. Your parents didn’t put 900,000 usd into this deal. The maybe bought it for nothing OOP and have been crushing it ever since LOL. If that really did happen you can imagine why they don’t want to sell.