All Forum Posts by: Ben McMahon

I get 100% financing on most of my deals. It's all private investors. We do a 50/50 split after they get all their money back. I also get paid on the acquisition, the construction, and the sale. As long as your investors are making good money, they are happy. You just have to find good enough deals, or be good at pitching your project. There is no hard and fast, I had to feel my way through it when I started, and it helps to talk to other investors. I just knew there had to be a way to get started without money.

You are mature Cody, I love it. Honestly, I would start by finding the highest rated training you can get into. Than I would buy a house where ever you plan on going to college and rent out rooms while you live in it. Not sure, if 11k is enough for a down payment or not, but that's what I would do. Chances are you can make money throughout college by renting to your friends, and be paying down on a mortgage. Hope that helps and good luck.

Hey Kristina, I have gotten so many different types of loans that they are all blending together now.  Are you looking for long term financing, or short term?  I think that is what is going to ultimately determine your approach.  If you are just going to sell it in a year, it doesnt really matter who finances the deal, or if they are a half a point higher or whatever.  There have been a few times, I just wanted someone to finance because I knew the numbers were good, but most of the banks were too set on the rules.  

I can offer a few points though. Every Lender is going to tell you that they can help you, and a lot of them can't. Its annoying, but just be ready for that. I bought a similar property in Winchester VA. It had an upper under duplex attached to commercial retail/warehouse space. Same price range too. I think I bought it for 135k. I figured it was easily worth 220k, but was vacant and needed a little lovin.

I ended up just using a private investor and flipping the property, because it was too odd for a lot of the lenders.  If you have other properties you can leverage, you can get a portfolio line of credit, or something along those lines.  Its about 10 times easier to get money from a bank when you already own it. Thats what I do.  Buy it with an investor and either flip it or refi.  Hope that helps, and good luck.  I know exactly where you are in your investment career if this is what you are looking at.  Haha

I can relate.  Cheers

Hey Trevor, NY taxes are killer.  You don't realize it until you move.  Im also from upstate NY, Gotham City is its real name, but its surname is Binghamton.  

Let me walk myself through the numbers real quick

I added up your expense column.  Looks like you have $9337 in annual expenses

If you have 20% down, depending on your interest rate you are probably in the 600 or 700 a month mortgage payment.  Call it 650 for now, thats 7800 a year.

7800+9337= 17137 divide it by 12 and you get 1428

So thats 1428 per month in expenses, and 2425 in income making it 997 per month if everything is awesome.  I like to figure one month of vacancy and one month cost of maintenance.  So thats 4850 

half missing income the other half expense 

So total income 26,675

Total expense 19,562

7113 annual return on a 20% down payment of about 35k?

Thats a little over a 20% return on your 35k, so yeah on paper it works

You also have appreciation upside, which you can figure into the deal. 

I think the biggest difficulty in a purchase like this is going to be vacancies.  Looks like the calculator did you a solid by spitting out a lower number.  Go with that, and if you are ok with it, than you are still doing well.  You also don't have property management in your figures.  Are you managing the property yourself?  If not, you need to add those numbers too.   I like to figure in some property management figures no matter what.

Hope that helps.  Cheers

Well, my crew is good, but we live about 3 and a half hours away.  If there was enough lined up, I could send them down there for a few weeks.  

What kind of stuff are you needing?   I know some

@Tom Ravid You may want to connect with Michael Blank.  He does primarily Apartment Complex Syndication.  I purchased some software from him a few years ago.  I don't know if he's on bigger pockets or not, but if you are interested i can put you in contact with him.  PM me if your interested

Asbestos is only a real problem when its disturbed.  You have probably read all sorts of stuff about this, so I won't go too far into it, but a good question.  Pricing depends on who does it, but yes, certified asbestos removal companies are going to charge a lot.  I also know what they do, and its exactly what you or I would do, so its kind of a rip off.  Im sure the chicago mafia could put a stamp on it if you get in a bind.  Might be fun. JK, but maybe not......

   Its a mad mad mad mad world.  Cheers Donald!

I think a referral program that links the potential client to the referring agent is plenty of compensation. That's basically an endless exclusive, and one of the major benefits that comes with management is the ability to represent in a sale. Wouldn't handcuff yourself in that way. A dollar amount is sufficient.

Hey Daniel Harnsberger I'm managing property in va. You do need to be licensed, and technically you need to be running the property management company through a broker, or your firm needs a broker. I'm actually figuring out the same question, so I'm glad you asked.