All Forum Posts by: Carlo D.

@Carlo D. Nothing wrong with being a private money lender. A lot of expert level investors end up going that way at some point (retirement age, bored of flipping, tired of managing rentals, etc.). 

Question; how much experience does your partner have? A lot is riding on him based on what you described. 

Question; how much experience do you have? Same could be said from his prospective. 

Just because have $$$ does not mean you're ready to start a REI business and attack deals. If you're doing long term BRRRR deals someone better know the numbers or have boots on the ground to make sure OOS projects are getting done correctly and within budget. I wouldn't expect much FED rate changes. Personally, I'd run the business knowing capital will be TRAPPED in these rentals, and rates won't drop much in the next 4 years. Some of these properties could end up being flips. Depends on your goals and equity at that time.

"fees associated with loans (origination, points, appraisals, etc" - Who cares about this stuff. You said you have enough capital for 3-4 deals. If you're making cash offers command a better price and buy properties correctly. You make $$$ when you buy. 

@Carlo D. Nothing wrong with being a private money lender. A lot of expert level investors end up going that way at some point (retirement age, bored of flipping, tired of managing rentals, etc.). 

Question; how much experience does your partner have? A lot is riding on him based on what you described. 

Question; how much experience do you have? Same could be said from his prospective. 

Just because have $$$ does not mean you're ready to start a REI business and attack deals. If you're doing long term BRRRR deals someone better know the numbers or have boots on the ground to make sure OOS projects are getting done correctly and within budget. I wouldn't expect much FED rate changes. Personally, I'd run the business knowing capital will be TRAPPED in these rentals, and rates won't drop much in the next 4 years. Some of these properties could end up being flips. Depends on your goals and equity at that time.

"fees associated with loans (origination, points, appraisals, etc" - Who cares about this stuff. You said you have enough capital for 3-4 deals. If you're making cash offers command a better price and buy properties correctly. You make $$$ when you buy. 

@Carlo D.

We use Madison management. Another very common one is FCI lender services

Hey @Carlo D.! 

I would give Chris Majcher at Greenpoint Insurance a call. He's a very knowledgeable and personable insurance broker, and we use him to find the best insurance fit for all of our managed properties here in Brooklyn. 

From my perspective: 

1) Landlord insurance protects against most types of liability in the even of a tenant wanting to sue you, but it can never be sure to cover all liabilities. This is why the property is best held in an LLC to begin with.

2) The policies should be in the LLC's name, but you can add any number of additional named insured parties, including yourself, maybe a manager, and anyone else who is involved, in order for those entities to be protected by the coverage.

A personal umbrella is always a good idea when right-sized and reasonably priced.  

-Kevin 

Hi @Carlo D. - I'm an investor and broker in NYC. A few things to point out: 

- Congrats on finding a coop that's a "deal" for cashflow. Most coops & their boards don't allow relaxed subletting for owners to place tenants. 

- "Deal-flow" from a real estate investing perspective is just that. It's the onboarding & exiting of properties that match an investor(s) buy box and in which a mutually agreed upon price is met with the seller... and then eventually sold. 

You're looking at real estate investing from a retail investor's perspective: Buying with the cash you save up, and then eventually buying something else, etc. That's why it's not making sense. 

Full time & institutional investors are always looking for deals because they know if the deal numbers are right, they'll be able to raise the money for it from other investors/funds. With this approach, you're not waiting to hit a certain number in your savings before buying the next deal... you hunt for the deal and when you find it you raise capital. 

Hope this helps.