All Forum Posts by: Charles Soper

Also worth noting on a pro forma when you see a higher cap rate than purchase is the brokers have made assumption about how much capes you will have invested and how much you've raised rents. Both have a direct impact on the NOI and thus the calculated exit price, so even if the cap rate has gone from a 5 to a 6, likely the NOI has noticeably to compensate.

@Leah N. Something else to consider if time is an issue is to look into even more passive RE investments such as syndication.  There are many syndicators here on BP and a wealth of knowledge to help you understand the investment.  Turn Key can be great but I've seen a few that aren't and is many cases the upside potential isn't as great as some other RE investment vehicles, passive or active.

The disadvantage of cash is usually the time value of money.  What other opportunities are you giving up because your cash is tied up in this project?

The advantage of HML's is usually in the ability to finance something most banks won't touch. If this property needs 40-50k in rehab is it even habitable right now? If not, no conventional bank will touch it. Also, many HML's will lend purchase and repair proceeds as long as you bring about 10% of the total cost and they aren't lending more than 70-80% of the ARV.

@Faysal Alam I may have missed it but are you estimating taxes based on the current valuation or the sale price?  Careful as that could be a bigger number than you expect, even for a cheap property.

Having attending many events for multiple industries over the years I would also advise that the best use of your time at these events is between sessions, network your butt off!  Sure, you'll learn a lot listening to the speaker, guru, coach, and their guest speakers and panels but look around the room!

Many in attendance will be beginners looking for a nugget or a two but a number will also be solidly involved in syndications, lending, etc.  Make it a point to find and network with the folks on stage, it will pay dividends when you start to build those relationships after the event.

There are also a number of syndicators here on BP that you could reach out to.  So as not to risk busting any particular SEC rule I would suggest you might start looking at the the profiles of a few of the people who have responded to your post.

@Christian Arenas, @Barry W Bahr, we are forming a mastermind group and it takes all levels of experience to make a group successful, you are welcome to come and observe, learn, and contribute!

@Jose L Torres please attend!  I'm sure you're experience even from a "hobby" perspective may help somebody and you may meet others who can help you move to the next stage in your investing.

Can you do a line of credit instead of a HELOC? Might find a smaller bank willing to do so

They want to know you’ve got a local presence.  Can/would you partner with somebody in that market?

@James Saturley, maybe you can help him out with the builder side?