All Forum Posts by: Account Closed

No Stephan, it will be his cash

The way I see it on the long term side, if I paid 8% annually or $11,200 , my taxes are $8,000 , I should still have a positive cashflow of close to $1000 per property. These are also 2 family homes we're talking about, 3 family's would bring in about $3600 gross and be about $25000 although some savvy investors are buying. 3 family's for the same price. I'm less worried about the prices because they will fluctuate from great deals to ridiculously great deals buts but I'd like to have the model in order. My partners will fund acquisition, rehab and hold so my ROI on these is huge as I'll be using very little of my own money and still adding a lot of value to everyone involved.

You're right on with those numbers Wayne, but the ARVs are based on selling to an owner occupant. There are 2 types of people dealing in this area and market, landlords and rehabbers. If it's a new construction freshly rehabbed it would sell for $225k-$300k depending on where its located but older houses that are newly rehabbed sell for $200k-$250k.

From a buy and hold side I would never want to be higher that 65(maybe 70%) LTV and with this model I don't see why I would ever have to. My money partners are investing for passive secured returns, they are not real estate guys, strictly money partners.

So here's the skinny(do people still say that?

So I have 2 friends with money and we've put together a pretty good plan for building a buy and hold business and them getting safer, secured returns on their money. They want to each invest in two aspects of our buy and hold model. We plan to acquire 2 and 3 family rentals in nearby urban neighborhoods. These properties are not in war zones but the next step up. So an average 2 family acquisition could be for $80,000 and need $50,000 in repairs. These have an ARV of $225,000

The rents are $1350 per unit or $2700 total

So one partner will fund the $130,000 acquisition and rehab for 12% with the interest accrued.

The next partner would fund $140,000 for the long term and receive monthly interest payments for 5-10 years of say 8%. I'm thinking we'd have to do some type of amortized loan over this term because my goal would be to hold these properties for a very long time (15 years) and would eventually want to pay them way down and use some (not all) of the equity for new acquisitions to get better return on equity. They will be strictly funding partners. I will handle every aspects of the business, itself. I'd like a little advice on how to structure the second (long term) partnership and what everyone thinks of the plan, in general. Thanks and God bless.

Quick question in regards to this as I just bought Alan Cowgills private money boot camp recording. Here's what I'd like to accomplish based off of where I am and the resources I have. Is like to buy, fix and hold rentals properties in the urban areas around me. I'll be focused on C neighborhoods and will stay way from war zones. A few of my ex-coworkers would like to invest in short and long term real estate. here's a scenario based off of real numbers I came up with and please let me know based off experience or, opinion, what you think.

2 family acquisition :$50k

Repairs $70k

ARV: $225k

Gross rent $2600 monthly

I'd like to use private money to buy and fix, then get a separate long term(10 year or longer) private loan for $120k.

My other alternative on cashing out after the rehab is to refinance through my mortgage banker from one of his portfolio lenders. I've heard the rates are slightly higher.

Trying to decide which way to go but that's basically what I'm looking to accomplish, also adding 3 families in the bunch which sell for about $70k and after $100k rehab are somewhere in the upper 200s-$300k range. If its a new construction the acquisition costs are higher but the repairs are lighter.

awesome topic and thanks for sharing. Do the letters need to be on high quality white paper or will plain copy paper due if the letter is nicely formatted?

I know a few people who are having sellers sign over the deed to them, then negotiating the short sale. I personally don't understand the model. There's also an attorney out here who has then sign over the deed upfront. I just met another guy yesterday. I asked him why he goes that route vs putting in an offer like everyone else. He said this is quicker. Sounds like a quick way to jail. I'm going to send him this article.

Anybody going to chime in here? I would appreciate it.

This is a great topic, I'm very interested in understanding the hiring process. I've found a great project manager who'll be working with us as an independent contractor. I don't currently have anyone doing bookkeeping/accounting. The tasks I would want immediately outsourced would be bookkeeping, taking calls (150-250 monthly), enter leads into CRM and manage proper followup, and paperwork emailing and faxing for deals. I'd like to know if I could get one person to do this. I know this person will allow us to multiply our efficiency big time and allow me to enjoy a little more free time. Also when I hire this person, should I invest in a small office space or can a person perform these tasks from home? I appreciate the insight from everyone who'll contribute.

I'm also sitting here considering if I should have a 9-5 business model or not. It's doesn't seem practical considering what we do and when a lot of sellers might be home. If someone is in charge of acquisitions should they just be on call, such as an outside sales type job even though they're going to be dealing with the sellers. Maybe we could do a 12-7 routine. Also they'll be responsible for working Saturdays, not Sundays though. The more I write the more I'm sure a 9-5 setup won't work. Is anyone on here familiar with acquisitions? Maybe you could give me some insight on how to structure this position. Thanks again.