All Forum Posts by: Brendan F. Nagle

@Payton Pearson

You lost me at doing it like Leroy Jenkins. Jumping in before they are ready and getting team/partners at risk is foolish. Growth just for growth sake is pretty limited. Explain your plan and dreams. Show a plan to get there. How are you different/better than the exponential spots to park $$$? To the money investor, how are you going to grow their money, and protect it if you or the market shift?

Ask yourself am I worth investing in? And if so, why aren’t you trying some creative financing methods to accomplish your goals.

@Jason Martinez

Very short answer. No. Once you pay there is no urgency to finish. I am currently waiting on a contractor/friend to clean up a small job. 4 days and 8 texts later. Still not cleaned up . It’s 1945 local time. Still not here. Before a holiday weekend...

Like others, save more and pay down debt to be in a better position, also reserves with a rental is a must. I currently house hack in St. Paul across the river. I do would reach out to @Kurt Pauley. A real estate agent that runs a meet up in SE Minneapolis. Owning would allow you to keep your pets long term.

@Nicholas Groover

Hard bitter pill first.

Track what you currently spend. Write it down. See where you are bleeding in your budget. Don’t blame wife/child. They are a gift and should be treated as such.

Now with family on board, work to cut expenses. Also work at growing your income. Find real estate chores you can do for others would have dual purpose. But even deliver pizza will add to budget.

Create a nest egg. A reserve for when real estate problems happen.

Now work your butt off to find or create a deal. A deal so good, a lender or a partnership will fund the deal. And do the work till the property is stabilized and cash flowing. Repeat...

I did this. Never making 50k w2 money a year. It took 9 years to get 10 doors. It has ups and downs. Some days will suck. Please do it faster and more profitable than I did. Good luck.

@Thomas Moran

Not a lawyer.

With most real estate law. Does this sound fair to both parties? If not, is it enforceable? Depending on the state, wholesalers are legal, grey area, or not. How can you be responsible for an assignment fee that you didn’t know the value of?

In future, don’t sign anything with language that paints you in a corner. A lawyer to look over the current contract after and some real in your state legal advice may save you thousands in the near future.

@Thomas Moran

With the numbers presented. Seller to wholesaler 41. Wholesaler to you 107. Light rehab and it’s worth 200.??? Sirens are going off. How did the wholesaler get a deal on contract for 1/5 the arv? Where are your comps. What inspections are being done.

The big question is you are worried about the language in the wholesaler contract. The statement that they can come after you for the assignment fee of 60. It may be time to call a lawyer. The hml lender has done you a favor raising a stink about this.

Could you use the 100k as a down payment for a House Hack. 3.5% down on up to a 2.8mil multifamily property in your area. Could be possible? House hacking would allow you control as you manage. I am a fan of options. 

I am looking at a small 1900 build 6 plex in MN. Numbers look great. Even at 25% down the Cash on Cash is over 18%. I ran the sellers numbers and then added Cap EX and Management costs at 5 and 8%. Numbers still look good. The questions that are slowing me down are what if the appraisal comes back low.

1. Can I get financed? It may be worth more to the seller than to the bank.

2. Small town, No pop growth in the last 20 years. How concerned should I be?

3. Property is an hour from me, I can self manage but preference is to have management in place.

4. Exit strategy- If the CF doesn't work as planned. Selling won't be quick or easy.

Any help would be appreciated. I plan on offering or passing by Monday.

I used insofast panels as my basement insulation and framing. That along with #1,2,&4 helped keep my basement dry. Finishing this week on adding a bedroom and Bathroom in the basement.

@Randall Peterson

No. Patience was needed. I wouldn’t have qualified for a loan on my own.