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All Forum Posts by: Manny Cirino

Manny Cirino has started 18 posts and replied 540 times.

Post: Seller Carrying a Note as Buyers Down Payment for HML

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335
Originally posted by @Daniel Cisneros:

@Manny Cirino I'm curious to know what you end up doing and how did you structure your deal. Im looking to learn strategies and come up with a good calculator to know if the deal will cash flow. Thanks for your input!

Good god this was 6yrs ago I posted this, since then I have learned and accomplished so much in real estate. Creative financing is single handedly the key to getting in to deals with little cash out of pocket. 

My structures are simple these days 30% down payment at 5% to 8% interest over 30yrs due in 5yrs

 Of that 30% down payment I'll pay 5% and the seller carrys a 25% second loan(I try to get a non secured 2nd and defer it out to be due at the 5yr payoff, but most sellers are smart enough to want it secured & usually go with a 6 month deferment.)

basic you have 1st loan and a second loan to factor in your calculation.

Simple Formula example;

Total Rent - 1st loan - 2nd loan - insurance - taxes - property management fee - any other expenses that apply to your situation = free cash flow. 

PM me if you have any questions.

Post: Could low rates be bad?

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335

Lower interest rates feel like a trap if you ask me. Many buyers can suddenly can purchase more expenses homes because payments are lower, it is going to bring in an influx of buyers that will contunue to eat up inventory & inflate prices and huge number of people currently tripping over each other to refinance is crazy.

Mean while unemployment continues to grow, Nothing is open at 100% capacity and many tenants are not paying rent. I see many people starting to avoid multifamily, multifamily is begging to slowly stacking up because buyer can't currently claim the full 75% of rental income as earned income on FHA loans.

And you have articles like the one that recently came out talking about how United Wholesale Mortgage is offering 2.5% interest but charged extremely high fees. 

Someone is going to be left holding that bag and it will be too late before you notice what happened.

Post: Newbie in Connecticut

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335

  Welcome this a great place to learn. Anything you want to know has probably been answered already on this site, so you have tons of searches you can pull from information at any time. 

  Analysis paralysis is very come in this business, so I recommend deciding if you want quick than your looking at flipping single family house in the average medium price range. But you want more cash coming in monthly then multifamilies are what you want.

  It's not so much about choosing a niche, but rather choosing a goal and an investment type that best matches your goal. All of the different strategies are thier simply as tools for your tool kit. The more you know the more you can identify and capitalize off of different deals.

Best wishes,

I'm in the New Britain area if you ever have any questions.

Post: Buying first Multifamily Property during covid 19

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335

The big question is what are you standards and criteria? That will make a huge difference in your decision CT can be grand and luxurious or grungy all depending on were you decide to buy. Low income properties yield well but are harder to appreciate and resell. Great areas yield lower have a higher barrier to entry but hold value pretty well and grow over time. What are you interested in?

Post: New Britain CT Market for Buy and Hold

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335

Great area to invest in but many sellers are priced unrealistic. I see the slowest price reduction on properties that need to be slashed heavily. Good properties go quick on MLS. I recommend marketing to preforeclosures. I've done great deals come out of there.

Post: Investing now vs wait and see the ripple effect of CORONAVIRUS

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335
Originally posted by @Marcus Johnson:

@Manny Cirino

Single stocks? We’ve made a ton of money offf of the total stock market index fund. Good luck with single. But low sell high

 Yes, single stocks first mostly oil, banks and airlines. Airlines are the most fluctuating right now for me, so I'm getting ready to pull out and reposition to index funds. I hit big on few and some are still uncertain so I'm ready to play the long game. Any input is appreciated.

Post: Investing now vs wait and see the ripple effect of CORONAVIRUS

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335

I am not a huge stock guy but the market is a so low you can close your eyes pick a stock and probably double your money in a week(of coarse I'm just trying to make a point education is needed). Real estate moves slower than the market be patient find a different avenue to build up capital like the stock market. Occupancy will go done, investors will panic and jump ship and prices will fall! I say wait.

Post: What area of real estate will be hit the hardest?

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335

  Besides the obvious retail & offices. I think people are are lying to themselves thinking multifamily is bulletproof. Many of the bigger properties are purchased as a collective and most people don't have the stomach to weather a recession even though they think they do. 

  I see many of these over leverage syndications going down the drain quick! I feel for those on interest only loans, with these huge preferred returns they are pressured to pay out every month.

  Many tenants are laid off and probably hopeful they will return to work, but what happens when many of these companies begin to realize they can operate without having a huge staff and the current business model becomes the new norm? Occupancy is going to slowly decline in multifamily.

Post: Connecticut Foreclosures and Fools

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335
Originally posted by @Steven Murphy:

I am a noob here as a 43 year old physician struggling to keep up the hours of my busy practice and I am looking for tips on starting investment by BRRRR'ing (is that a verb?) through foreclosure auction in the state of Connecticut.

Thank you so much!

 Hi Doc,

It sounds like what you need is a Realtor who is both a knowledgable Agent and Investor. Someone who can scrub the market for potential deals and up coming auction properties and feed them to you.

Also a good contractor who is willing to walk the property with the agent and estimate repair cost.  Your practice is just not going to allow you the liberty to search & view multiple properties.

How far in the process have you got so far?


Post: 15 day notice for lease violation in CT

Manny CirinoPosted
  • Real Estate Agent
  • Winter haven, FL
  • Posts 572
  • Votes 335
Originally posted by @Karen F.:

Their caseworker is the first person I spoke with.  I'm not talking straight Sec 8.  I'm talking an assistance program when DCF is involved, to try to keep the kids with the parents.  Straight Sec 8 has been a mixed bag - just like self-paying tenants.  But in our experience, every single family that has come with the assistance of an agency has been an unmitigated disaster.  It almost immediately becomes obvious why the family needs the assistance of a caseworker to be housed.

So the caseworker first spoke with the family, and they apparently said they would stop using the space heaters, but would not get rid of the extra tenant (Grandma) .  BTW, the gas heat system had the place at over 78 degrees on a really cold day, so it's not that there is ANYTHING wrong with the heat.  But we went ahead and put in over a grand of additional insulation in the attic, because of their complaint.  The windows are good.  The place is as well insulated and as draft-free as is reasonably possible in a hundred year old building.  They just like to be in t shirts and shorts, and have the kids in just a diaper, in the wintertime. I suspect that they are on an unlimited use electricity subsidy program, and for that reason, they prefer to heat with electricity.  I took a look at the lease, and it specifically prohibits the use of any heating or lighting source other than the gas heating system provided, and the electricity for lighting - no kerosene lamps, no alternate heating system.

So I sent the KAPA letter (as advised by our excellent real estate attorney).  At that point, the tenant, who had ignored previous communication, responded that Grandma is just "visiting" (NOT what she told her caseworker), and that she DOES have a bed in a specific nursing home, that they were just "trying it out", to see if they could manage keeping her with them, and that if they could, THEN they were going to ask if they could have her move in with them, and that meanwhile, one of the bedrooms in the house would be dedicated to her exclusive use when she visits, which means that they are packing 7 children into two bedrooms, with the fourth bedroom set up with a walker, oxygen, all Grandma's needs for when she "visits" but there's not much I can do about them stuffing 7 kids into 2 bedrooms, while keeping a guest bedroom.  Lease says that a guest may only stay 14 days in a year, but tenant is claiming that the law allows 14 days every six months - I cannot find anything confirming that, so I'm telling her she's got to file what is in the lease.

They're not happy about it, but at least now I think that they realize that they cannot have Grandma lose her nursing home bed.  It scares the crap out of me to think of what could happen if they were to cause a fire by using electric space heaters.  The way the unit is set up, Grandma, who uses a walker and is on oxygen, is on the second floor (when she "visits"), and they and their 7 children who are very young, we're talking 5 of them are under the age of 5, are on the third floor.  There is no way they would be able to get everyone out if they were to cause a fire.  Not to mention the fact that they're endangering the other residents of the building with the use of the electric space heaters, overloading the circuits.

They have committed other horrible violations, but that we're getting under control, despite their lack of cooperation.

But now I at least have it documented that they cannot move Grandma in, and that they may not use space heaters. Hopefully, they will accept what they had been told before I agreed to rent to them, and that has now been formalized in the KAPA letter, not to mention in their lease - that they could not add another person to the tenancy.  I just want them to comply with the terms of their lease, and not endanger themselves and the other residents of the building.

Context is everything. I totally understand  now and see how they just continue to pile up one violation on top of the other. You could definitely have a bigger problem in the future with them if they continue how they are. 

As far as the 14 day every six months, that appears to be a MA rule. CT is based on what was negotiated on the lease agreement. However CT favors the tenant over landlord so they will not be so nice to you if there rent is up to date they may enforce the guest leave or find that certain circumstances make the guest a permanent resident. It one big grey area. You may be better off just waiting them out and not renewing there lease.