All Forum Posts by: Christopher Russell

Any contacts greatly appreciated. Im looking for a line of credit on a couple investment properties I own outright. There's no loans on the properties, so the line of credit would be first position. I've considered a cash out REFI, but I don't see the value in paying closing costs and losing 3.75% of my income if I don't have an exact place to put the capital. I just want access to it in the form of cash when I find more deals. Anyone have advice or contacts? My current equity is approx $2.5M

It's funny to read things we would do with our money 3 years later! I wonder if anyone did what they would have done?! I sure wish I did!

@Kama
Delray is awesome! I'm just concerned with 300 apartments being available down the street within a few years. Then again they will be high end apartments inside a building and the building I own is one story, four units with front and back courtyards; I suppose there will always be a market for completely remodeled studios with front and back yards in downtown Delray East of federal highway. Maybe this building should just be an anchor in my portfolio :)

@Joel
Thanks for the input. What type of building are you thinking?

Thanks for the input guys. It's a tough decision! Everyone around here tells me not to sell, but they also told me not to buy when I did! It's tough because if the building brings in $2,000 net operating income per month, over the next 10 years that will bring in $240K in profit, 20 years $480K etc. But if we sold it today, we could walk with $300K profit and get into something else cash. So hold and net $240k over the next 10 years, then possibly sell and still make the $300K; or take the money now and get into some other deals! It's so easy to buy a good deal, but for some reason hard to let one go!

I tend to agree, if I feel the risk and I'm not an underwriter with potential skin in, I would imagine an underwriter would have a field day with this. But I'll tell you what, no idea is a dumb idea as far as I'm concerned. Thanks for all the ideas and knowledge from everyone, this site rocks!

I'll try to keep it short, bought a building in downtown Delray Beach Florida for $150K 2 years ago. Since then the city has expansion is going NUTS! The city was just rated most fun small city in America. It's a South Florida beach town and my building is in the best area in town, one block off of the intracoastal. Currently we are making 60% profit monthly, so it's a cash cow. The city just approved a HUGE plan for a Delray City Place which will be amazing for the areas, values will prob skyrocket. I'm just worried about apartment over saturation. Not only that building, but many others are going up. All of the buildings on my block have sold, as the investors are moving in. Comparables are around $400-$500K as of now so the return would be good. It's a tough decision because if rental values drop due to over saturation of available units, I will have wish I let it go. Part of me thinks if one particular area balloons due to hype and plans for expansion, should one cash out and take coin to other areas while they are still low?! Or should one keep their score in the best area possible as a portfolio permanent position? Hmmm this is always the hardest part of real estate investing! Buying the good deal is easy, but selling it is always hard when it's bringing in monthly residuals and the only place it can go is up up up. Anyone have advice or comments? Thanks in advance

That almost sounds too good to be true, but I will look into it and see if will work in Florida! Thanks for all the info to digest!
I would be scared to lend leveraged money because if they defaulted on me I would still owe the payments for my original loan. The problem with this is it could take an entire foreclosure process to get repaid and who knows how long that could take. I would say land lording is just as risky with not being paid, but at least you only need a couple months to get them out.

The way I look at it is when you buy a piece of property for the kind of money you are talking about (VERY LITTLE), you have a concrete investment in which you are the driver. Stocks are controlled by corporations and fickle market conditions that honestly I just can't keep up with. Being a lender sounds great, but sounds like a lot of red tape involved and a knowledge you are not savy with at this point. Real estate is literally a concrete foundation (if its a good builder). As long as you get a general warranty deed and purchase a fee simple estate, YOU ARE IN CONTROL. None of this subject to the mortgage crap, you own it outright. I would figure out the following in order to make my decision:
PGI (potential gross income)
-V&C (vacancies and collections)
=EGI (estimated gross income)
-OE (operating expenses)
=NOI (net operating income)
The NOI will be the income you make per month. Depending on the area, you may have to account for more vacancies, but this is also dependent on your skills in renting. I personally LOVE multi family buildings that are four units or less. Five units or more are considered commercial in Florida. Obviously do an inspection and see if the repairs required are worth it. I would have a roofer look at the roof and get an inspection unless you're a cowboy like me! Best of luck!

Completely agreed. Well the articles on here are very informative, I try to check those out as much as possible. I'm going to try to find what I can on the subject, and keep you around for questions :)
Shark week is on, have a good night guys!