All Forum Posts by: Cory Iannacone

@David Oechslein there were 2 reasons people told me not to put money into rehabs on rentals: 1) they are just rentals and tenants will just damage them and not take care of them, and 2) they didn't think I would get the rent amounts I was asking for.  Turned out there are plenty of good tenants out there--you give them a nice apartment, and they turn it into a home that they take care of.  I actually have waited to take photos of my apartments until the tenants move in, because they stage it so well.  And there was definitely a market for these nicer rentals, which tenants were willing to pay higher rent for.  I couldn't fill my apartments fast enough, and at one point, I had tenants giving me holding deposits on properties that I had not even closed on the purchase (let along rehabbed the apartment).   Here is a good example of how my tenants keep my apartments.  I actually waited for both tenants to move in before getting photos done.  

@David Oechslein Thanks for the comment.  Fortunately, my cash flow has not been significantly impacted by the pandemic.  I did significant upgrades to my properties when I purchased them and really took the time screening tenants to find people who would be a good fit.  Every tenant I placed myself had stable employment and is still working (most from home), and paying rent in full and on time.  I have only had 2 tenants (inherited - one bar tender and one mechanic) out of 21 total tenants who told me they could only make a partial rental payment for May, but also promised to make it up once they got back on their feet.  So, I am currently short $515.  All things considered, I think that is very good.  One of my banks mentioned yesterday that they are seeing a lot of landlords (who cater to lower income tenants) get hammered with nonpaying tenants.  The last 3 years everyone was telling me not to put so much money into fixing up the apartments so nice (contractors, other investors, RE agents, etc.).  I am glad I didn't listen to their advice.  I will definitely be continuing to follow this business model.  I actually just closed on another property last month and just made an other offer on a larger apartment building this week.  

@David Flores invited me to be a guest on his No Money Down Real Estate Investing Podcast to talk about my journey from 2 to 18 units ($1M in Real Estate) in 12 months Using OPM.  Dave really focused on my no money down deals using seller financing, private money, and even hard money.  I had a blast doing the podcast.  Want to hear us talk about this article?  Check it out at:

https://podcasts.apple.com/us/podcast/no-money-down-real-estate-investing/id1492933244?i=1000461631801 

Thanks, Dave!  Great Podcast!

@Deborah Hoffman hi deborah. I have a great PM company in Harrisburg if you’re interested. Great service and you can’t beat the price. PM me and give me the details on location and I can connect you.

@Rick Sanchez - I actually made my own mailers and personalized them (so it wasn’t “we buy houses for cash”). Basically just said I was committed to helping the local area and wanted to invest here, let me know if you’d like to sell your property. I did a couple hundred mailers and got probably about 10 - 15 people respond. Out of those 10 - 15, I got 6 properties from 2 different people.

Thanks!

@Tony Lee yes—seller would want a mortgage on the property as part of the seller financing.

@Shane Dempsey I used S&T Bank.  If you are investing in PA and would like me to make an introduction, just let me know.

@Heshel Mangel No--I do not think you would be able to do HML and bank financing at the same time. Both would most likely want a first position on the mortgage on the property. I could be wrong, but I just don't believe it to be the norm.

@Daniel Umstead I didn't have any difficulty getting the Business LOC with my bank. All of my deals were with the same bank so I had a track record. I only had my LLC for 1 1/2 years before getting the LOC. Also--it was secured by a property.

@John Kim I qualified for the loans based upon the income from my job.  It wasn't until my last deal that the bank really started looking at the rental income from my properties.  I believe this is because all purchases were 2 - 4 unit properties.  Once you go to commercial (5+ units), then the bank focuses on the property's performance.