All Forum Posts by: Brad Z.

I closed on a 4/2 buy and hold last week and got the renovation started, should be done in 2 weeks. I purchased this with parrtner and agreement is that he will get a line so we can buy another.

I am closing on a 3/2 flip in two weeks. This willl actually be a bit of a shift for me as everything I have purchased to date has been a buy/hold, a few I have flipped but didnt buy with the intention of doing that. I am excited about this becuase it certainly changes the renovation scope and welcome the challenge.

I was able to refi an 11 unit that I had funded via private money. There was a little luck and a good relationship with a local bank that allowed this. I just finished renovating all 11 units and had 2 occupied at the time of refi. I happened to mention this to a branch manager and she said she would be interested in taking a look. I have done quite a bit of business with them and its one of those banks that I intentionally go in every month to make mtg payments to get face time. I was able to apply and close within 3 weeks.

These are rules a great way to value a property when doing a driveby, scrolling through the mls, but thats about it... If you are getting serious about making a purchase, actual expenses should be the only things used.

For example, I have multifamily that is close to 3% and my cap rate fro 2011 was less than a single family that I have that is closer to 1.5%. Although both properties are solid perfomers, actual numbers tell the full story. The single family less effort to manage also.

Tenant paid utilities are one of the biggest factors when assessing properties.

All good answers here. The only thing I will add that locking in fixed rate finacning at <5% is an excellent hedge against inflation as well. In a perfect world, I would use all cash for fix/flips and financed rentals at no more than 60%-70% ltv.

I agree that single families are easier to manage and typically have higher cash flow vs. dollar invested but once you get 10 mortgages, portfolio financing can be a bit more expensive. If you know what you are doing, and become an expert in due diligence and research, buying larger multifamilies is a great way to significant increase cash flow with 1 loan. It is a different animal for sure but certianly has its benefits over singles as you can grow much quicker.

With that said, I highly recommend starting with singles and 1-4 units until you get really comfortable and start to define your business model.

I couldnt agree more. I have had $$ parked in a small bank that is my primary portfolio lender for rehabs and will be my key lender for 10+ loans. I even have to pay a monthly fee (although small) vs. most larger banks that offer free business checking accounts.

Im 26 and can relate to a few others in this thread. I really like the last line of the article.

"I wasn’t scared. I was doing something I liked, and I’m still doing it."

My take on this is that if you are educated in what you are doing, trust your methods, you should not be scared to take calculated risks.

I think fund up to your company match is hard to argue against.

I do also agree that any long term chart typically shows a pretty strong trend in the equity markets but it feels like a crap shoot to me. (probably because I have been contributing to a 401k for 7 years and its been very volatile). I think its hard to justify investing above your companies match because as a RE investor, you can earn 20% to 30% on your money pretty easily. I do also think diversification is critical as well an dont want to be 95% in RE even though at times it seems like the right thing to do.

My plan is to continue to fund my 401k for 2-3 more years, then roll into a solo 401k when I go self employed. Ill then use it to fund short term transactions via borrowing provision.

Thanks Steven and Steve. I did catch up with attorney and lender, both of you are correct. They will likely do the loan with both of us on the title but its just as easy to establish a partnership and keep the properties/financing in seperate names. We can get a tax id, similar to creating and LLc and simply file a partnership return and pass a K1 back to each member.

I was thinking that but don't want the bank to have a reason to add me to the HELOC. We plan to use the heloc to buy another property (in my name), then get a heloc on that property. No reason for both of us to be named on the financing. I am already limited due to # of loans.

Do you believe a bank will be ok with only one owner on the deed getting the financing or will they ask for both of us to be named on mortgage?

I am in the process of acquiring a property with a partner. We are paying cash but will turnaround and get a HELOC pretty quick on it. The mortgage will be in his name, therefore the property will need to be in his name as well. We cant create an LLC and put property in it because he will be getting the heloc in his name only. Any ideas how we can structure it so we both ownership interest in it? Thanks for any feedback!