All Forum Posts by: Chris Davidson

@Laura Romaniello these are great questions and it really comes down to your personal finances and goals. Doing a househack that has low cashflow but in a highly appreciating rental area for an individual with large excess funds each month makes more sense then with an individual living paycheck to paycheck. What most investors forget is real estate is usually long term, and Y1 numbers mean very little in a house hack unless you are paycheck to paycheck. In that case get a higher CoC return build up a reserve and go from there.

At the end of the day folks don't become millionaires off cashflow. However you need cashflow to some degree to reach your net worth goals.

Hope this helps!

@Christina N. like others mentioned I would reach out to someone who specializes in this. What I would be curious about is the exit strategy and what kind of implications there would be on a sale or could you do a 1031 on this. Sometimes you just have to pay the taxes.

Like @Bonnie Griffin Kaake a cost seg could help, and if not at least your tax professional should be able to pull out the furnishings and accelerate them. 

Quote from @Latoya Pryor:

Good Morning Everyone

I live in Virginia and have interest in a home here who the owner I am unable to reach via skiptracing.  Through search engine (beenverified) I called a relative which turned out to be his daughter.  Due to family issues she has not spoken to her dad in over 15yrs but knows he lives in Africa at this time.  How do I search for a contact number in another country? Platforms use do not skip trace out of the country.  Any help or advice?

 Work different avenues other than phone. Is it vacant or have renters is there a PM you could go through? Social media, email, snail mail to Africa (I wouldn't bank on this one but likely would be the only one to try). You have name and now have to do the skip tracing yourself. You got a lead where he is, or at least was 15 years ago. 

Best of luck.

Quote from @Petya Toncheva:

@Bud Gaffney what if she decides to take me to court? This is what I want to avoid if I can

 Hire a PM, or start diving hard into the education. You are all over the board with the tenant and that shows them you don't know what you are doing and will change your mind easily. You have a problem and need to get the tenant out. The time it will take to make it right will cost more than it is worth. Get advice on what the law is, and the contract you had them sign. That way you don't step outside of the law and won't get in any more trouble. If you are worried about court lawyer up first and let them make communication will be easier to get the tenant out.

Best of luck!

@Vlad B. it can make sense to add a W/D but check the market first sometimes other things could be more important. Check what the market is providing and see where you can add value.

Cheers!

@Cory Medley congrats on making progress and catching the REI bug. I would caution to invest from a point of strength. Getting your next deal can be great, but do you have funds in place to float your current place if income slowed or stopped, and had repairs that needed to be made? As soon as you add a new place you have doubled your chances of things to go wrong. It helps if you have a bit more in reserves or access to funds. Being creative is a great way to expand and scale, however you need to be smart about it as well.

Best of luck!

@Matthew Schiefer like the others said yes you will be able to use DSCR options. Also There are many more options out there. Reach out some brokers that specialize in it and go from there.

Best of luck!

@Christian Leon if you are looking for lower rates in the future you might be disappointed. However going the local bank way can work out for access. I have had banks do 90 day unsecured lines to purchase deals outright that need to close quickly while already having a LOC with them. Even if you are paying a higher rate than conventional it is usually much cheaper than hard money. Also they will refi pretty quickly and not worried about seasoning if they are keeping the loans.

Wish could help with your area, but it will come down to just getting to know the banks and who is doing what. Hit up local meetups or agents if you don't know. At the end of the day if you are making the bank money and keeping funds rolling with them they will treat you a lot better.

Cheers!

@John Stanaway DSCR doesn't require 6 months of seasoning. Without knowing your background it is hard to say your options. But you can do a conventional refi after the seasoning period, and likely get the most out with the best terms. or you could do a DSCR quickly and get pretty close to the same out just a bit higher. Also if you have a relationship with a bank see if they have a portfolio option that looks good to you. If you are floating it all with cash it should be really easy.

Cheeers!

Quote from @Account Closed:

@Chris Davidson Currently in Mexico and the amount is around $80k USD so maybe you're right: specifically looking for locals and expats already involved in investing in RE here in the area could be my best bet.

Thank you!!

Definitely, Find where the expats that aren't living super tight budget hangout, and get to know them. Doesn't matter if they are in RE or not. If you find an older retired couple that have money sitting in the market getting hammered, and you can give them a better return they might be open to it. What makes private money harder now is bonds and lower risk debt actually has decent returns thus you are gonna have to pay more for the money.