All Forum Posts by: Ashley C.

Hello Michael. I'm new to studying real estate and I'm wrestling with this question myself. If I've finally gotten this straight, "getting my money out" at refi means I've gotten all my initial cash investment back (e.g. the 20% down payment) in the form of a check at closing. I still control the property but now I can re-use those same fund to buy a second property. Good luck on your first deal!

I've come across a seller-financed gutted 8-unit multifamily. There's an identical rehabbed property nearby. What's your advice for getting numbers to analyze this property? Many thanks -

HI ya'll, newbie rehabber here. Am I missing something in my holding costs? Here's a sample project. Numbers fudged for easy math; using 360 day year/30 day month.

assumptions: borrowing $140K at 8% for 6 months; accrued
annual interest = $7k; $19/day
anticipated profit = $40K; $111 opportunity cost/day
vacant building insurance = $150/month; $1800 annualized; $5/day

accruing interest $19
opportunity cost $111
utilities $5
property tax $5
insurance $5
Total daily $145; total monthly $4,350

I'm a newbie investor planning to rehab with private lender funds. How do I prioritize my list of potential exit strategies so I protect profit while cashing out my lender as agreed? I plan to buy and rehab so well it can't help but sell, but best laid plans and all....

Choices so far are:
sell full price (or close to) retail
discount and sell as investment property, vacant
discount and sell as investment property, tenant in place
lease option

I appreciate your help.

Hi ya'll. Hope I'm posting in the right place....

I plan to rehab. There are bound to be times when I can't sell when I want for what I want. How do I know I'm coming to a point when I better start thinking about changing strategies? I'm guessing it's based on my daily holding costs, like up to "x" days I can afford to follow a full retail strategy, but beyond that I better get moving on a lease/option, and if that doesn't work within "x" days, I better....

Thank you for your advice.

newbie post. Sorry in advance, I'm still working out how all the contracts, etc. work and how each party is protected and what their options are.

I'm in VA (non-judicial foreclosure), and will be using private lenders to fund rehabs. I understand the promissory note should address how default/breach is handled. In the worst case scenario, where the house just won't sell (retail) and the lender's fed up with waiting, what is his recourse? Can he/she foreclose, with the note controlling the circumstances when they can pull the trigger? Can I use instead a quit claim provision and escrow the signed quit claim?

They'd end up owning a house at 70% LTV or better, but if we already can't sell it, they'd still have to hang on to it till the property finally did move. I'm assuming the lender has hung on through a 6 month loan and doesn't want to take ownership or be a landlord, just wants his money back, but that might not be possible if everything goes to heck in a handbasket.

FYI my exit strategies are straight retail sale, lease/option, sell to another investor to cover expenses.

Thanks for your help! :D

J Scott, thanks for the link to your article. Exactly what I was looking for. Sorry to jump in with the newbie question - I got so excited I didn't stop to look around first. :)

Thank, Kevin. I could use a single whole life policy to add/drop private lenders over a series of rehabs, yes?

I love learning how to tie the loose ends together - yay, Financexaminer!

Hi Bryan. Any chance you'd share the email so we can understand the context?

Personally, if I got an email touting someone's vulture investor philosophy, I'd get myself of ftheir email list and put the sender on my "do not do business with" list. But hey, there's an audience who really digs it. Reminds me of guy selling a system for finding private lenders who crowed about stealing them from his fellow local investors. "That's right - I STEAL 'EM!" Not cool. Getting over on somebody else to get mine is a trait I avoid in my circle. Nobody dies in my desert - we hang out in rocking chairs sippin' cold sweet tea in the shade.

To me it implies taking advantage of Joe the Plumber's lack of investing sophistication, say, a Sub2 where Joe wasn't informed how he could take a hit if things go wrong. "Vultures" are the same guys who look Joe in the face and say, whoa dude, we're all adults here, buyer beware. And then sleep like a baby.

Bill, he was a CPA

LOL - you may be right!

I spent last night tackling the undeclared vs s-corp election, the proper forms, blah blah. I never though I'd say the IRS website is helpful, but I'll be darned. I think I finally get it. I'll have to take a picture of my notes and all the arrows, underlines, scribble throughs, if-then but if-not-then, "huh? Ah-HA! huh, what was that tax guy talking about"? It looks a little, um, Jackson Pollack, but those notes and ya'lls comments really did help.

On an unrelated-ish topic, I'm still not clear why it's better to have achieved a certain positive income from the business before I declare the s-corp election. I don't know how I'm disadvantaged if I go s-corp straight out the gate vs. s-corp at $50K. but that's a post for another day.

Thank you all for chiming in.