All Forum Posts by: Billy Daniel

Have you ever taken on a large project like a fix and flip before? Maybe a major rehab on your rental? HML can get very expensive if things don't go exactly to plan. Unless you have a very good network of contractors and a solid understanding of the construction/marketing process, there may be other options.

Have you looked into commercial loans? They require a larger down payment (access your equity), but they allow you to finance your rehab costs. Rates will be better than HML as well, most likely. For the record, I think HML can be a great option. It just concerns me when I see someone looking for them without a strong understanding of the flipping process.

Hey @Braedon Kenney!  Congrats on taking the leap and getting into real estate sales!  What part of central Arkansas?  We are in Russellville, but might be able to recommend an office or two!

 Mostly just for kicks.  I have taught a beginner investor course, but I would like to just share my story to inspire others to action.

Hey BP!  I recently came across a guy who did a podcast challenge and was a guest on 30 shows in 30 days.  I decided I wanted to branch out of my comfort zone and appear as a guest on a few (not 30...yet) podcasts.  If you have one or know someone who does, I'd love to connect!  TIA!

Hey @David Dubeau!  I'll shoot you a message!

 The deals that cash flow from day 1 are certainly out there.  They are harder to find right now with the high cost of borrowing.  A more substantial down payment is needed most of the time.  Over the last year, I've cut back a little on what I want as minimum cash flow simply because I would rather have the property than wait for a better deal.  Everything I buy is positive on day 1, even if its not as positive as I'd usually like!

The price seems a little high in its current state, but not outrageous. I selling your other rental property an option to avoid the HELOC? A good 1031 exchange could help you out a lot! I personally wouldn't buy anything that could be negative on cash flow. It's just too risky. What if another tenant moves out before you fill the vacancies? What if Murphy steps in and blows out a water heater? I think there's a good deal there, it may just take a little back and forth to find it.

I'm also in Arkansas!  Good luck with this one!

Never base an analysis on appreciation.  That should just be "bonus" money.  A recession will wipe you out if you are depending on that.  See the current commercial market (office and multifamily).  Several syndicators got into the hot market and based their returns on continued appreciation.  Those properties are now selling at a discount!

Check out a commercial loan. You can finance repairs up to 80% (lender-specific) of the ARV. The interest rate is a little higher, but they're easy to get and if you're flipping anyway that wont matter much.

If I were to design a 4-year degree program for investors, it would contain the following courses:

Communications, accounting, finance, micro/macroeconomics, banking, communications, negotiations, sociology, financial planning, and then communications.

Basically, all the things a strong investor needs to have a good working knowledge of to have a diverse portfolio.