All Forum Posts by: Byron Paille

Quote from @Bruce Lynn:

They're both rented and occupied right?

You are right they may not cash flow at 80%, but you don't have to take 80%, maybe take 70 or 60%.  Don't leverage to the max, be conservative.

One is rented the other is in Final stages of build. People leaving notes and messages to get into it daily. I only need around 60% of the new builds value to build the duplex.

What is the DSCR interest rates verses your average refi?

Ok refinance is the better option. It comes down to cash flow. I'm looking to scale now that there 2 units. What do yall consider the minimum cash flow on your deals. I like all people would like to get it all but we know it is not possible.

What do yall want to get for cash flow per door to see a deal as good? Right now with rates I appears for around $400 a month CF I can onlyndo 60-70% cash flow.

I currently own 2 homes free and clear. One older I bought at an auction  and a new build. I have a large lot and approval to build a duplex. I am done spending my money and am looking to scale. 

Do yall do a refi for this or get a heloc? With rates at this level I an not sure places will cash flow at 80% loan value. 

One home is worth 125k and new build is hitting the 230-250k mark.

Built in TX a few years ago. My state or most states to my knowledge do not have construction loans using VA. You have to get a construction loan then Convert it to VA loan post build.

Quote from @Jon Rovia:

Quote from @Byron Paille:

Quote from @Jon Rovia:

Quote from @Chris Seveney:

Quote from @Byron Paille:

I am in my late 40s. I have always dabbled in real-estate and done well. I am approaching it in a much more specific way now. Should be closing on my 6th rental next month. 

What is the goal number of homes for most of you? I do not have a set number yet. I read most investors only have 12 on average.

Are you looking at a monthly dollar amount more so than house or unit amount?

 My goal is 1 home. The one I live in. Why? Because I have owned lots of real estate in the past and now own the loan, love being the lender over owning the property all day long. While there are alot of benefits to owning the real estate, sometimes its not worth the aggravation.

 As the lender, how do you provide an advantage over traditional banks? Say I wanted to purchase a 500k home with 20% down, why would I come to you over a bank? 

 I wouldn't. My acting as the banking is for those having issues with the bank. If you can buy a house outright there is no need. Advantages for me not for thee. No repairs, no taxes, no insurance that is all on the borrower. I make money during  the length of the loan. 

If they do not pay I forclose and resale the home. A few I know that do this even have early payment penalty so they may make a certain dollar amount on a sale.

 That makes sense, but since you're likely dealing with sketchy borrowers, maybe poor credit or a history of defaulting that scares away banks, what do you use to guarantee they pay on time or won't abandon payments midway through? Some kind of collateral? 

Larger down payments. My few friends that do this have had zero repos after 15 years of doing the banks job. They charge a higher interest rate with a good down payment. These are c houses fixed to b homes. One payed 50k at an auction, 25k rehab, then listed for 125k sale price. 20k down at 8.5 interest rate. You have 55k invested with $395,361.80 paid for a 30 year note. Now they are charging 10% with prepayment penalty of 20k the first 10 years of the loan. 

Quote from @Jon Rovia:

Quote from @Chris Seveney:

Quote from @Byron Paille:

I am in my late 40s. I have always dabbled in real-estate and done well. I am approaching it in a much more specific way now. Should be closing on my 6th rental next month. 

What is the goal number of homes for most of you? I do not have a set number yet. I read most investors only have 12 on average.

Are you looking at a monthly dollar amount more so than house or unit amount?

 My goal is 1 home. The one I live in. Why? Because I have owned lots of real estate in the past and now own the loan, love being the lender over owning the property all day long. While there are alot of benefits to owning the real estate, sometimes its not worth the aggravation.

 As the lender, how do you provide an advantage over traditional banks? Say I wanted to purchase a 500k home with 20% down, why would I come to you over a bank? 

 I wouldn't. My acting as the banking is for those having issues with the bank. If you can buy a house outright there is no need. Advantages for me not for thee. No repairs, no taxes, no insurance that is all on the borrower. I make money during  the length of the loan. 

If they do not pay I forclose and resale the home. A few I know that do this even have early payment penalty so they may make a certain dollar amount on a sale.

I was just doing the same thing here in TX, then stumbled onto  5 unit deal. Where this property was commercial. There is no city code or regulations for me to fight. I still may attempt the purchase after closing this deal.

I would talk with the city manager before doing to much just mention affordable housing and community needs. Having a friend on the zoning side helps as well. If you are in a state like Cali, NY, or something just go with single family. 

Right now I am going to just build a good portfolio. I am leaning torward paying off as many as I can then basically letting it coast. My goal is to teach my son's as we go through the journey. The idea of having a 40 unit apartment paid for or 20 or some SF homes seem amazing. I agree there is a take and give on doors vs CF. I like the idea of later acting as the bank and carrying the note. 

Right now I am going to just build a good portfolio. I am leaning torward paying off as many as I can then basically letting it coast. My goal is to teach my son's as we go through the journey. The idea of having a 40 unit apartment paid for or 20 or some SF homes seem amazing. 

At the moment I an averaging $500 a home in the portfolio. If that held true it would not take many to reach my first goal. I have not leveraged or scaled just yet. 7 month 7 units 5 SF 1 duplex. Just seeing where she goes.