All Forum Posts by: Charles Clark

Boa tarde @Brandon Bruckman I hope all is well with you. I would be open to speaking with you about this great opportunity. I have a finance background, currently own and manage 15 units in Milwaukee, and an active real estate investor agent in Milwaukee. I am open to sharing more of my background with you to ensure I would be a great fit for your speaker engagement. I am also a member of the Southwest Wisconsin Apartment Association. I look forward to speaking with you about this amazing opportunity. 

Beleza,

Charles Anthony

@Bridget Kelly

I hope all is well with you and congratulations on continuing your investment journey. I am an Investor Agent in Milwaukee, WI. My fiance and I are currently househacking a duplex in Bay View. We also own and self-manage two multi-family buildings on the northside of Milwaukee. They are eight unit and five unit buildings. We did this in less than 2yrs all in Milwaukee, so I know it is possible. I believe househacking and using the FHA to get a four unit are the best ways to get the most on one transaction. If you would like to chat more, feel free to contact me.

Beleza,

Charles Anthony

#bebetterbybeingbetter

@Sarah Hansen

Boa tarde Sarah, I hope all is well with you.

I think you have a great start to a business plan. Most people don’t write down what they want to accomplish so then they never get started. It is awesome you took that step. And that you talked to other people, like your dad. This is another step in turning your plan into reality. Here are my suggestions:

1. House hack. Use a FHA loan to get a duplex, triplex, or four unit. Don't waste a mortgage on a single family. If you are trying to quit your job soon, then you need to generate cash flow with every RE purchase you make.

2. I would suggest talking to realtors who work with Airb&b properties in the area you want to invest. 2 of your goals deals with Airb&b, so I would find people who are focus in that area.

3. How much do you need to make a month to walk away from your job? How much do you need to make each door to make that happen? Calculate these numbers so you know what you have to make on a property.

I hope this helps you on your journey.

Beleza,

Charles Anthony

@Trent Barga

I hope all is well with you.

I like using the DSCR because it is a worst case scenario metric for me. Cost per door doesn't matter if you are not making enough to cover the mortgage. Without the mortgage, you don't have cost per door, you don't have cash flow, you don't have a property.

Also, you can change cost per door when you take the property over. This is an area where a good deal, can become a great deal. If you can lower the cost per door then that will also increase your DSCR.

I hope this helps you on your journey. Feel free to reach out if you want to talk more RE investing.

Beleza,

Charles Anthony

@John Matarazzo

First, congratulations on your first purchase, and I know there will be more to come.

I love MTM for this very reason, so I can move on from a relationship that is not healthy. All money is not good money, and I am sure you got into this for passive income. It is not passive if you have to chase down rent every month. I say give him, his 30 day notice, and then use the winter months to fix up the property or if your property is in good shape then re-lease it. Not being able to find tenants during the winter months is a myth. If you have a good product at a good price, you will rent it out.

For your other question, the notice begins on the day you give it. You can give the notice whenever. For example, you give a 30 day notice on the 10th, then the tenant has 30 days to move out. If they don’t, at this moment you can start the eviction process.

I hope that helps you on your journey. Feel free to contact me if you want to talk more RE.

Beleza,

Charles Anthony

@Marcus Hill

I hope all is well with you. I had to make this choice early this year and I went with selling. Normally, I would say that you should always try to cash out refi instead of selling. The reason I sold, was due to the fact that I couldn't obtain all the equity I gain in the property, unless I sold it. 

For example, I purchased a four unit for $199k, and put $25k into the property. Appraised at $283k, a year and half after we purchased it. The mortgage was $196k roughly at time of appraisal. Bank will only give me 75% of the total value, which would only allow me to refi $216k. I would only be able to cash out $20k. However, I was able to put it on the market and sell it for $283k, and pocket $57k after fees. I turned around invested that cash into a five unit for $250k. Gaining a unit and increasing my cash flow. 

At the end of the day, you have to run the numbers to know which one you should do. I wasn't planning on selling the property, but the market jumped and I took advantage. 

Let me know if you would like to chat more about my experience or real estate in general.

Beleza,

Charles Anthony

@Randall E Collins

I hope all is well with you. It takes a lot to seek advice when things are not going your way. You recognized that your situation could be better and you are doing something about it. 

First, what are you trying to accomplish? You stated, looking for a big break. There are no big break. My first purchase was a four unit using a FHA loan. I was making $800 a month after expenses. That doesn't look like a big break on paper, but it changed my life.

Second, if you are flipping/wholesaling properties then you can not be in front of a computer. You have to be out meeting people and working on properties. That is how flipping/wholesaling works. How many offers did you write? How many properties did you go see? You can not look at properties from your computer screen and try to flip them. 

Third, do you have a team of people to call on? Do you have a realtor, a contractor, loan officer, insurance guy/gal, and attorney? If you don't have any of these people that you talk to on a regular, I have to honestly say that you been playing real estate and not doing real estate. 

Randall, I hope this helps you on your journey.

Beleza,

Charles Anthony

@Jacqueline Blue

I hope all is well with you. My strategy has been to signed MTM leases with new tenants. This allows both parties to get comfortable with each other. After a six month "trail period", I will go back to them and offer a year lease. Sometimes, I just keep it at MTM, because it allows more flexibility. I can give a 60 day notice to raise rent if I am in a MTM. Signing a two year lease locks you in at a rent rate that will be out of date when the lease is up. This will bring calm, because you won't have to worry about signing a lease; however, it is less money over the long run. I hope this helps from a different point of view. 

If you ever want to chat about RE, please feel free to contact me.

Beleza,

Charles Anthony

@Corlin Anderson , I hope all is well with you. Great question. I say go for cash flow, because it can deal with problems if they arise. If you go for appreciation and a boiler goes out. Equity in the property can't pay for a new one, cash flow does. 

Four units are the way to go, in my mind. I purchased my first investment property with a FHA and it was a four unit. Less than 2 years later, I have 15 units because I started with a four unit instead of a duplex. Leverage is the name of the game. More doors per loan helps you scale and gain a higher ROI. My goal is $150 a door, but I currently I average $300/door.

I hope this helps with your decision. If you have any questions or want to discuss further, don't hesitate to contact me.

Beleza,

Charles Anthony 

@Joshua King

Congratulations on putting an offer on a property. FHA loans have a bad wrap because of FHA appraisals. Yes, they are more difficult and sometimes harder to pass approval than conventional loans. With FHA, lenders will also ask for you to have 3 months of reserves to close the loan.

With that being said, FHA loans are the best way to go to start your investment journey. I used a FHA loan to purchase my first investment property. It was a four unit and I only had to put $7k to close on the deal. I had to have $10k in reserves also to close the loan. FHA was a game changer for me. Less than 2 years later, I own and manage 15 units, and it all started with a FHA loan.

If the seller doesn't want to use the FHA, then move on. It is a great financial tool to use to get your foot in the game at lower cost than a conventional loan. I am also an agent, well an Investor Agent, and I work with first time investors and I always suggest using a FHA to get their first property. It is a great tool to use with House Hacking. I closed on one deal last month and have another closing in December and both are using FHA.

I hope that helps you are your journey. If want to chat further or have more questions, feel free to contact me. 

Beleza,

Charles Anthony