All Forum Posts by: Cenddie Alaban

Thank you @Leah Tesch, @Cory Lucas, and @Anthony Hanks!

@JD Martin I've listen to Bigger Pockets podcast show 243 and I'm glad that you were successful even though I consider your investing journey atypical. You tried construction instead of increasing your portfolio thru typical means. That's very encouraging since I'm going that route too. Not construction but hiring a property manager at the get go. Putting down payment instead of BRRR. Atypical of our group here in Chicago. Our group also encourages to pay down the property faster by using cashflow but I think the theory of cashflow recycling will be my preferred method. Thank you for sharing all those mistakes, it's actually encouraging.

Thank you again to @Luciano A. and @Steve K. for additional encouragement and advice.

A wealth of knowledge shared here, thank you everyone. I've read your response at least twice and each time I read it there's new information I see. Now that I have plan how to weather the coming tsunami, @Fred Cannon open a new avenue, the future of RE investing with non-paying renters. So if you evict your renters, they would need another place to rent and since they haven't paid during the pandemic, I wonder if another Landlord will accept them. What will happen is there's a big exchange of delinquent renters between Landlords. Well, that's not our topic. 

In Summary, 

We should not just ride the appreciation but invest for the long term.

If we're caught up, we could either dump the property and buy at the bottom, do a loan modification or ride it out (depending on which is best for the property). 

SFR's seems to be better suited for the downturn than MFR's.

Leverage does not equal genius. Warren Buffett would agree. He said there's two things that will destroy a man, Liquor and Leverage.

Focus on cashflow and other fundamentals.

Cash is King during the GFC because lending will stop.

@Luciano A. that's how I feel right now, FOMO. Thank you for pointing this out. I would bid 20% higher just to get a property.

@Steve K. how would you know that a market has poor fundamentals, you mean the neighborhood, income, school, migration, jobs, crime, appreciation?  

Thank you everyone for the knowledge you have imparted; rents go down particularly with Multifamily during recession, loan modification can be used to keep us from selling properties, SFR rents may not be affected and @Bill B. even raised his rents. I would assume @Eric James that the 75% vacancy rate was cause by renters buying houses because of very low prices. That is, if there's no credit crunch. My question is, especially to @Lynnette E. is that if you dump your properties, you would lost money and probably declare bankruptcy, how could you then buy houses. Also, I know that there will be a credit crunch just like what happened last year when the pandemic hit (investors that fund mortgage lenders became panicky and withdraw their money causing the crunch). @Bill B., I know with certainty that last year, Chicago land mixed SFR-MFR investors that invest in B & C neighborhoods were hit by 30% vacancy. On the other hand @Brandon Turner said, he only have about 5% (not sure), are your SFRs in an A neighborhood?

What are the reasons why millionaire and successful real estate investors lost it all during the crash? Was it over leverage? What does it really mean? Was it because of the neighborhood they've invested? 

Thank you for your answers, Shawn Mcenteer, Paul Welden and Harjeet Bhatti. Now, I understood more clearly my situation and the path I've choose. Looks like I'm still on the right track.

Cenddie Alaban

Hello Everyone,

I bought a house to live in last September of 2018. I bought it with conventional loan with 3.5 % downpayment. It needs a rehab of about 30K. I plan to take an 203K FHA loan for the rehab. My question is can I refinance and bundle the 203K loan and my original conventional loan into a single FHA loan?

Thank you in advance

Cenddie "Vic" Alaban

Hello BP,

I'm looking for a respected General Contractor in the Round Lake Beach Area, can you please suggest one. If you're a contractor in the area, please PM me.

Vic Alaban

After taking an extensive class on rehabbing and rental investing, I thought there's really nothing new I can get from Midwest Real Estate Networking Summit. My biggest take home from this summit is the Investor Psychology topic by Meghan McCallum and John Casmon. I wish I have attended the other 60% of the events...I will next year!

He will be one of the Midwestern Real Estate Networking Summit speakers hosted by Brie Schmidt (BP Podcast 078 and 132) on May 11-12, 2018.