All Forum Posts by: Clinton McGilvray

You're casting a very wide net right now and not likely to find what you need if you're looking for everything all at once. You need to get tied into the local investor associations and then branch out from there. I'm in Zanesville and actively involved in Newark, Zanesville, and farther east on I-70 so feel free to reach out and I can connect you.

Hey Alex, I'm actually a Realtor in Cambridge. I'd be happy to meet with you for coffee and discuss our local market

Typically you would do this for agents in your own brokerage as I've never heard of doing this for an outside agent. Personally I would not allow an outside agent to hold an open house at one of my listings. The idea is you are giving their listing more exposure and you get all of the buyer leads from hosting. If someone wants to purchase that house then, as long as your state/broker allows dual agency, you would represent them on the buying side and get paid your part of the commission. Also anyone else who comes through you have a sign in sheet to gather phone numbers and email addresses so you can follow up. You can then help them find and purchase a home as their agent. You may also be able to volunteer to answer phone calls on the weekends or evenings. Our office will forward the after hours calls to an agent who then gets any of those leads that come in.

@Malinda Gibbons my properties are owned by the same entity so I just have the one card for my rentals and I write checks for certain expenses. I have other business ventures that I have separate cards for so I know what I need to invoice for and can track that business P and L.

You have to do what makes sense for you. Tony from the BP Rookie podcast has said before that he uses 20+ bank accounts to handle his and his wife's personal monthly budgeting. Works for him, no way in the world would it work for myself. I have two personal bank accounts, emergency fund and everything else. If you are going to have an LLC or getting serious about REI then you should treat it like a separate entity. My rentals(6 doors across 2 properties) have a bank account for Sec deposits and then an operating account. I use credit cards to manage which expenses go where but they are all paid in full, every month by the corresponding bank account (personal or business operating accounts). I don't have to shuffle money back and forth that way yet I can easily find the transactions I am looking for. Your system is only as good as its implementation so it has to be easy for you. Good luck!

I always recommend to not bundle properties together. You have so much more flexibility if you want to sell any of them in the future. You can also control your cashflow by paying some of them off or refi'ing one that has appreciated etc. I'm in Ohio and in an area where home prices are under 100k so I understand what you're dealing with. Do you know who else understands the local market? Local lenders. Make connections with local mortgage officers and ask about their products. I've found success with this method, especially utilizing commercial loan products. I just got an 80% LTV cashout on at property that appraised for 73K.

@Kurtis Delahooke is a Realtor and investor in Eugene. He may be able to help you.

Everyone who says six month is the shortest period is speaking of conforming loans. There are a ton of loan products available outside of that. I usually ask about commercial options because the terms can be more flexible to make the deal work. I would rather pay extra interest or have a shorter amortization to make a deal work rather than try and cram the deal into their conforming parameters.

Interest rates should not make or break your deal. I use an excel doc to analyze all of my deals and it automatically calculates payments based on terms and the rate I input. I always predict higher rates because if a 1-2% shift in rates makes it a bad deal, then I don't want to be in it in the first place. I also analyze the deal with my standards for ROI. If it hits that desired return, submit the offer. If it doesn't hit that return, what number will get you there? Every property has a sales price that makes it a good deal. So find that number for you and submit your offer. I would LOVE for interest rates to be 18%. Sellers would have to understand that the purchase price would have to come down in order to make a deal work(or not be able to sell). Historically speaking rates would be likely to come down after that so you can refi later. If rates stay the same, then every dollar paid toward the mortgage is essentially being invested at an automatic, risk free 18% return! You marry the property, not the rate. It will be next to impossible for people to refi these loans that they got 3% on inflated values. They are locked into those loans now. If you don't believe me then listen to Warren Buffet "Be fearful when others are greedy, be greedy when others are fearful".

I just completed a BRRRR in Ohio with a smaller local bank. The relationship with the lender is what got my foot in the door and then I was able to show them the proof and receipts from the rehab that I did along with almost tripling the gross rents. All of that gave them the confidence that I had truly improved the value so purchase to cashout was 3 months +/- a week.