All Forum Posts by: Brett Merrill

@Cheng Bin Zhang Thanks for the response. Yes actually I have come across a few good deals already and hope to be closing on them soon. I still have much to learn. It sounds like we have similar REI goals but in different areas. It would be great to meet up sometime and bounce ideas off of each other. My job is very flexible. Send me a private message on when and where and we'll see if we can make something work.

- Brett 

@Nick Romano I looking in a pretty small territory that includes Chicopee, Amherst, Northampton, Granby, South Hadley and a few others. You're not joking Boston is very competitive and is out of my price range for how I'm looking to start. What type of REI are you into. I actually might have a good lead for you.

Hello BP community,

My name is Brett and I am fairly new to BP and REI. I am a 28 year old physical therapist currently living in Brookline, MA. I came across BP after hearing it mentioned in a different personal finance podcast. After further investigation, I was immediately hooked. I have been a member on BP for about 4 months and have recently become a PRO member. I have been spending the last few months educating myself on all the different types of REI and the key financial measures that apply to each. My main focus is on buy and hold properties in the western MA area. My first goal is to obtain 3 properties over the next year. I've begun my direct marketing which has already produced a few promising leads and have been analyzing three properties a night to improve my ability to find a great deal. However, I have many questions on , direct marketing strategies and numerous other topics. I have been attending REIA meetings here in Boston, posting on the forums and continue to read books mentioned in the podcasts. I hope to find a few mentors on BP that wouldn't mind answering a few questions from time to time and assist in furthering my education on REI. Thanks for taking the time to read my post and look forward to hearing from you!

- Brett

@JD Martin and @Andrew Michael here are the estimated #'s just as an example:

Purchase price: $400,000

ARV: $510-520,000

Repairs: $5,000-10,000

Taxes: $6500

Cap ex: 10%, Vacancy: 5%, ins:10%, 

Closing $4000

If I was to put $40,000 down and have a loan of $360,000 at 6% for 30yrs my P&I is 2,158 and PMI of $200

Monthly income is currently $3000 but I know that they have not bothered to raise the rates which is definitely possible. 

In the end without adjusting rent cash flow is -350 but the ATR is 60% after 4 years 

These are averaged numbers but will give you an idea of the deal. Hope this helps. 

@Andrew Michael thanks for the reply! Thats what I'm thinking might be the best bet right now. I will expand this deal over BP as well as market through my local REIA group. There's obviously more money to be made if I had the capital myself but I am all about the "50% of a deal is better than 100% of no deal. I will definitely look for a business partner and mentor. Thank you for the advice!

@JD Martin thanks for the reply! The owners of the home were previously renting the apt but the husband unfortunately has major health complications and the wife is too overwhelmed trying to manage and keep up with the house. They are both in their late 70's and are not investors. They own the house free and clear and just want to relieve the burden of owning and maintaining the home. I definitely was thinking of house hacking but I currently live too far away from the investment and would not be able to take advantage of the FHA loan rule of having to occupy the home within 60 days of purchase. But if I can make that a possibility it is definitely the route I would like to take.

Hello BP community,

I am new to REI and am learning the ropes. I have read many of the books, listened to the podcasts and have started my direct marketing. It has already produced many great leads and should be closing on one of them soon. I've primarily been marketing for multi-family homes and plan to use the BRRR technique to further my investing. However, I have come across a different great deal, am not sure what to do with it. The house is a beautiful 3 unit multi-family home, located in a great neighborhood, by a great school and is walking distance to the downtown. The house is turn key and has never had any trouble renting. It is not listed on the market and is currently unoccupied. The seller is motivated to sell due to health reasons and would be willing to sell it for almost 100k under market. Here's the problem: The home is out of my price range currently and turns a negative buy and hold cashflow according to the rental property calculator (due to high taxes, low down payment and estimated mortgage payment). Initially I thought it would be possible to purchase it with hard/private money from a lender, make quick repairs and then refinance to pull out the extra equity to pay off the hard money/private loan. However, after looking into it it looks like no bank or lender would lend (even on a great deal) to someone without an extensive history of deals or collateral.

- I can provide numbers if that helps with the question.

Questions:

1. Should I look for another investor who has the funds and do a double close?

2. Is it possible to find a private lender who would fund such an investment with little to no money down

3. Should I try to offer a lease option and possibly "sandwich" it to save and buy it in the future

4. Should I find private money through family/friends/investors to fund the down payment of a conventional loan and then reimburse them upon the sale of the house?

There are so many creative ways to fund deals and options to sell. I continue to research these options and educate myself however am very confused as to what to do about such a deal. Or what type a deal it even is.

Thank you!  

Hello BP community,

I am new to REI and am learning the ropes. I have read many of the books, listened to the podcasts and have started my direct marketing. It has already produced many great leads and should be closing on one of them soon. I've primarily been marketing for multi-family homes and plan to use the BRRR technique to further my investing. However, I have come across a different great deal, am not sure what to do with it. The house is a beautiful 3 unit multi-family home, located in a great neighborhood, by a great school and is walking distance to the downtown. The house is turn key and has never had any trouble renting. It is not listed on the market and is currently unoccupied. The seller is motivated to sell due to health reasons and would be willing to sell it for almost 100k under market. Here's the problem: The home is out of my price range currently and turns a negative buy and hold cashflow according to the rental property calculator (due to high taxes, low down payment and estimated mortgage payment). Initially I thought it would be possible to purchase it with hard/private money from a lender, make quick repairs and then refinance to pull out the extra equity to pay off the hard money/private loan. However, after looking into it it looks like no bank or lender would lend (even on a great deal) to someone without an extensive history of deals or collateral.

- I can provide numbers if that helps with the question.

Questions:

1. Should I look for another investor who has the funds and do a double close?

2. Is it possible to find a private lender who would fund such an investment with little to no money down 

3. Should I try to offer a lease option and possibly "sandwich" it to save and buy it in the future 

4. Should I find private money through family/friends/investors to fund the down payment of a conventional loan and then reimburse them upon the sale of the house?

There are so many creative ways to fund deals and options to sell. I continue to research these options and educate myself however am very confused as to what to do about such a deal. Or what type a deal it even is. 

Thank you!