All Forum Posts by: David O.

Hi All, 

I am curious to hear your criteria surrounding expectations of cash flow per unit. I know this is a loaded question as there are a lot of variables / strategies. From a buy and hold perspective on a SFR in a B neighborhood do you expect $200 cash flow per unit?

When I factor in 8% vacancy, 6% cap ex, 6% maintenance/ repairs, property management, make ready/ tenant placement, taxes, and insurance I seem to typically come out with around $100 per month. 

I am on my way to 100 units and just want to know how many beers I can drink :-) (20k per month passive anyone?) . 

Hello, 

I am working a strategy where we are using private money to acquire , rehab and stabilize rentals. The process takes about 90-120 days. After the 120 days I am looking for someone who can help me finance 5-10 SFR into one loan. I prefer the loans to be based around debt service ratio and not personal financials.

We will be all in at 70% of ARV and would like a lender that can lend 75% LTV.

Appreciate your response. 

Thats a phenomenal idea. 

If you're interested in wholesale deals in Cumberland or York County, ME send me a message and I will add you to my buyers list. Please let me know what sort of criteria so I can match you up with the right deals. 

Ross, 

Will you send me the package on this? 

There are some great criteria already listed. My only addition is this: The rental house you buy is only as good as the management that takes place. If it's mismanaged, even if you buy it right, the asset will not produce as expected. If you buy out of town be willing to fly to that location and make certain your goals are consistent with the management you find. In reality each house you buy is its own business. Your business can have the best product in the world but bad management can keep it from making money. 

I am not a big fan of vanity numbers. I run a radio show with some folks who have been doing it for a while. One thing they told me when I was selecting a number was not to get "to cute" with vanity numbers. Your better off trying to find a number with a lot of repetition of digits. 

In marketing always put yourself in the shoes of the audience. Does that vanity number make you want to call you? I believe it just adds a barrier. 

@Jake Charles

 I don't think it is two large for your first deal. But whats more important is what you believe. Post some numbers. Let's walk through the deal and see if it makes sense on paper to start. 

Hi All,

I am considering entering into some parterships in different parts of the country. I am mulling over the following and would appreciate hearing your thoughts: 

As an out of state investor in these markets (implementing a Buy - Rehab - Rent - Refi strategy) I will need to:

1. Source Deals 

2. Have a trusted source estimate the rehab 

3. Acquire the property

4. Complete the rehab 

5. Have the property managed. 

If I am providing all of the capital and I partner with some one who lives and works in that market what would you see as a fair equity split?  My thinking is having that individual an equity owner in the deal is most appropriate if I want to align our interests long term. 

The partners I am considering our real estate licensed with property management business's in place and also experienced with rehab. I see multiple areas where they will have many benefits through the whole transaction. 

I also recognize I will be 100% financing the deal thus take 100% of the financial risk. It is in my best interest to own 100% of the deal. On the other side of that, I understand that if I find the right relationship and allign the incentives it will allow me to complete deals with a lot less stress.

I hope this is a clear question. 

I have a question regarding how Private Lending is typically structured. I will give you this scenario. 

I have a SFR home that I will purchase for $65,000 and rehab for 25,000 the ARV will be 100k. I would like to borrow 100% from my friend "Bill". Bill has a self directed IRA that he would like to loan me the money from.

1.Is there a typical "best practice" structure for this loan? I.E. do I give bill a first position on the property or just sign a promissory note? 

2. Anyone experienced on how Bill would access those funds from his self directed IRA. Does he contact the custodian and with what documentation?

3. Any tips on preparing the appropriate documents. I imagine having an attorney do it properly makes sense but any tips surrounding this? 

Thanks so much.