All Forum Posts by: Justin Eaton

Kyle, if you want to DM me i can send you the info for my attorney, she works at Dash Farrow out of Moorestown.  

Hello all! Its time for another meet up! The turnouts have been great so far and i'd like to thank everyone for spending the time to come out and network at these events. Lets make this one the biggest yet! Next week we will have @Chad Gallagher coming to present on a couple different topics which will include property management and using private capital to fund deals. 

@Chad Gallagher is the co-founder and owner of SlateHouse Group (www.slatehousegroup.com). SlateHouse is an investment and property management company, with a focus on using technology and local service to improve property management operations. SlateHouse manages over 3000 units for 800+ owners across Pennsylvania and New Jersey, with over 90 full-time employees in the company.

SlateHouse is devoted to helping investors grow their portfolio through a variety of ways. Chad leads 5 free meetups across PA and NJ for investors to learn about real estate investing. SlateHouse also has 10 real-estate agents that specialize in working with investors and a full home repair maintenance division. Finally, Chad is a blogger on BiggerPockets focused on the evolving technology landscape in real estate.

Chad has acquired over 200 buy-and-hold residential units. 100 of those units are a part of a syndication where Chad raised $2M across 25 high net-worth investors.

Previous to real estate investing, Chad led Advertising.com Mobile, a leading global mobile advertising network, which was eventually acquired by Verizon. Chad graduated from the University of Virginia with a degree in System Engineering and is originally from Lititz, PA.  

Below are the links to two great BP blogs by Chad:

https://www.biggerpockets.com/renewsblog/transformative-tech-tools/

https://www.biggerpockets.com/renewsblog/tech-evolving-property-management-forever/

@Anthony Susco from Ashmore Partners will again be sponsoring this event again for us and providing some refreshments. 

Spread the word to anyone that may have interest in coming to this event and I hope to see you all there! 

Regards

Justin Eaton 

Hey everyone, despite the spring snow storm the meet up is still on for tonight! Hope to see you all there. 

Update for everyone: @Anthony Susco from Ashmore Partners will be sponsoring the event again and bringing some refreshments.....any ideas for said refreshments?!?

Hello all! Due to timing and scheduling for use of the conference room at the Homesmart Office again, the meet will be pushed back one week to next Thursday the 22. For this meet up, Chris Anderson an investor from North Jersey will be giving a presentation about his journey as a real estate investor! Chris is primarily a fix & flip, buy & hold, and property management company! Check out his website here - Chris' Website! 

Hope to see you all again next week! Tag anyone and everyone who you think would be interested in learning about real estate! 
 

Unless I'm missing something or misunderstanding, I think you may be forgetting to factor in the $50,000 rehab cost into the financing. Unless you're using cash for renovations? See below..

Purchase price: $180,000

Down payment 25%: $45,000

Finance 75% of purchase price: $135,000

Finance 100% of renovation: $50,000 

Total financed before refi: $185,000

Total all in before refi (total financed+down payment): $230,000

Cash out refi at 75% LTV of $310,000 ARV: $232,000

So you could still pull your down payment back out and essentially be into it for close to nothing, with 25% equity - if all goes as planned. Looks good to me. 

Regardless if the renovation is financed or not, the all in price would be the same at $230,000. 

Good stuff @Ian Livaich! Clean post, easy to follow.  Without knowing the condition of the property, i am assuming its vacant if you plan to spend $50k on a rehab right away. If not you may run into problems getting the existing tenants out and in time in order to complete the rehab within the construction loan term (typically 12 months).

Regarding your Mortgage section, is the mortgage payment based on the total loan amount of $225k? When you do your refi into a 25 year term, do you plan on getting a mortgage for only what is owed on the existing mortgage? If so, this would mean your down payment stays invested in this property. If its me, i would prefer to pull some cash back out during the refi to reinvest. With your numbers, you're all in for about $277k (mortgage + down payment), if it appraises for $300k after renovations are complete, they will only be able to cover the original mortgage at $225k (75% appraised value) which means you wont be able to pull out any of your down payment. If you're fine with keeping the ~$50k invested, which based on your ROI numbers, you are, then it seems like a good deal.

@Chris Kriegner @Mayer M. Sure! Shoot me a friend request and include your email address in the message and i can add you to the email thread. 

Justin 

Thanks  again for everyone who came out! Thanks to @Anthony Susco for the sponsor and @Lauren C. for the presentation! I will be sending out the hand outs and excel sheets in the email thread shortly. 

@Kevin Zolea see above