All Forum Posts by: David Casal

I own about 13 properties in Lackawanna county.  It’s a great rental market.  I’ve had exceptionally low vacancies and have been able to steadily increase rents without losing good tenants.

I think the biggest downfall of the area is lower appreciation.  We tend to miss out on the highs and lows of the real estate market but it’s a nice stable area to invest.

Good luck with your investing!

David Casal

Rocco Valvano  - I have used him on many transactions and he is great to work with.  

Hello,

I'm trying to see if anyone out there has ever done a wholesale deal and flipped the house as well.  I ran this past my attorney (who is risk adverse), and he thought it was extremely risky for me and was very opposed to it.  So I'm trying to see if any investors have pulled this off.

Basically the owner has agreed to sell a property to me for $90K (or wholesale it to me).  They understand I plan to invest about $30K and sell it for $150K.  If it goes as planned that would leave about $30K in profit.  Seller agrees to this entire plan and understands the profit could be higher or lower but they get $90 and the balance would be mine.

I realize just buying the house from the current seller is the cleanest way to do this, but I was trying to do this as a wholesale deal so I don't need to pay the closing & transfer fees now since I'm only going to have the property for a few months.  Also I'm not in a great position to get a loan due to other real estate loans I have.

I also considered doing it as an owner finance but then found out the seller has an $84K mortgage (we are looking into this to see if it is assignable but that's unlikely).

Anyone have any suggestions on how I can structure this?  The sellers are very reasonable and now are tenants of mine living in a different house I own so we have a good relationship.

Thanks for any input you can provide!!!

Hello,

I'm wondering if there is a liability or other benefit to starting my own property management company to management rentals I own (some under my name and some under LLC's). I currently own and manage about 38 units. I also am a licensed real estate agent in PA and all properties are in PA.

I'm not sure it the added layer has any benefits from a liability standpoint or not.  From a management standpoint, it seems like it would make things a lot easier because I could have everyone make checks out to one company and then manage finances out of the management company.

Any input on this is greatly appreciated!

Thanks

David Casal

I'm considering a scenario similar to Ronda's.  Can anyone tell me what would be a typical percentage paid to the broker in this scenario?  

Hello everyone!

I have built a decent portfolio since acquiring my first rental in December 2013.  I now have 13 buildings with 37 units.  I have been mostly buying cash properties that need work, fixing them up, and then taking a loan on the final appraised value (80% of appraised value for 15 yrs).  The model was working great, but I have been working with one bank for all the transactions, and they now say my new loan requests must go in front of a board to get approved due to the number of loans I have (also total loan value).  The process of getting the money out of the equity I build has slowed significantly, and I have lost confidence they will continue to provide the loans I seek.

I feel I am at a turning point in the business because I have built it quickly and now wonder if I should be evaluating other potential sources of borrowing.  Should I just stick with the local bank and tolerate the slow approvals and vagueness of if they will continue to loan me money, or are there other options I should be evaluating?

Thanks for your input!