All Forum Posts by: Dan Costantino

@Jasmine Wilkes selling triggers tax liability. Refinancing and accessing 70%-80% equity is tax free! Get that money and invest it. Make sure you don't need any capex on your existing building. If you do, make sure you properly maintain that property.

Also, its real easy to sell right now. Which means its hard to buy cash flowing properties.

So, don't sell unless you're okay sitting on cash for a while, to identify the right opportunities.

@David I. As a lender, myself...2nd position on a down payment doesn't make sense for me. Im sure there is someone out there.

I'd advise you to build rapport with lenders by giving them 1st position loans. Then ask them to consider 2nd position.

If I supplied the down payment, that means the property is 100% leveraged. I am concerned if you're buying deep enough.

I buy below market and fix up with a budget under 80% so I can refi out without leaving cash in.

Maybe someone will give down-payment for some equity?

@Nnamdi Okwerekwu. You can, but your #s will not be 100% accurate. But, you can get an idea of whether or not you should go look at it.

@Bekah Brown I started my own construction company because this is so hard.

This is a super complex question to answer because there are so many variables.

Get an Independent Contractor Agreement and Scope of Work thats been checked over by your attorney. (Spend money her because it saves you from ****** contractors).

Require insurance and a W9 BEFORE any money is exchanged.

If they'll sign and provide you with the above, you're on the right path.

Definitely check references and try to go see their work. Everything looks good on photos. Up close, it could be a nightmare.

And....you'll find out. Sometimes its trial and error.

Lastly, make SURE, you tie your payment schedule to significant deliverables to make sure the value matches your cash outlay

@Rodger Curbelo pay your obligations off. Thats what you should do. It is hard to invest with ****** credit.

But, if you are set on investing, spend money on marketing for Subject To deals.

@Arjay Estrella if you paid commission, I would say no. If they went above and beyond their duties, which is possible since you're out of state, I would definitely consider it.

Think long term, if you take care of them, they'll think of you first when they come across a nice deal!

@Marvin Bobb we use Appfolio. The tenants get a portal where they can check their ledger, pay rent, and submit maintenance tickets.

@Rachel Reese, House Hacking is a great idea!  I know NJ is a different market than Pittsburgh, PA (my market).  Those numbers would be way too tight for me to consider.

Great job accruing for Maintenance and Capex, though I think you will find those figures are very light. If you need a furnace, or a rental turnover because the tenants didn't take care of the unit, you will lose money for the whole year. If you are ok with the principal paydown being considered your investment, then fine. Everyone has their own strategy. Especially when you want to live in it for a while.

But the numbers do not indicate that this is a great investment on a cash flow basis.  Perhaps a 5-6 cap is good in South Jersey.

Have you gone after off-market deals?  That is usually where I find the better returns.

Good luck!!!!!!!

@Anuja Savaskar sorry for the delay!  I don't come on BP very often anymore.  However, YES!  Flat Fee Listings have saved me tens of thousands of dollars.  I use Simple Choice Realty in Pennsylvania.  They cover PA, DE and MD.  Chris Carr is the Broker and he can help you find other Flat Fee services in the country if you need to.

If you want, DM me and I'll send you some listings that I've used the Flat Fee service on so you can see how quick they go.  In few instances, I'll use a realtor, but for the most part, I hire my own professional photographer for $150.  Stage it for $1200, and list it for roughly $400 (they have discounts for investors that use them regularly).

I like controlling the communication with agents, rather than using a realtor.  The Buyers agent does most of the work for the transaction anyway, so why pay 3%?

Hope that helps!

I haven't looked into the IRA LLC. Thanks!