All Forum Posts by: Edwin Epperson

@Spencer Gracia you are getting a lot of great information from the group. I have read most if not all posts, so maybe someone else mentions this... the 1st and PRIMARY reason these numbers won't work is that it is an MLS deal. If you think you have "found a deal" on a public open-source platform... you may want to consider why no one else has purchased it. In this case, you are paying a premium, which I believe another contributor commented on. I'm not going to beat a dead horse I think you get it. Best wishes and believe me there are PLENTY of deals to be had. If you have the capital, maybe you should consider finding someone to JV with? Just a thought.

If I may add a perspective from the lender's side, a private lender at that.  I am particularly cautious about a contractor that is wanting to conduct their own renovation.  I'm not saying that I have never loaned a GC or Contractor purchase and renovation capital, but it boils down to mindset and expectations.  Many contractors do not want to meet my expectations because of the way they have worked in real estate in the past.  You know this better than most its a cash flow heavy business.  Many contractors cut their teeth by floating one job by paying for that job with money ear marked for another job, planning on using the final payment from the finished project to go into paying for the project the money was originally ear marked for.  For the very select few contractors that are actually able to get out of the "rat race" and establish for themselves enough liquid capital to handle an entire project before even NEEDING the project capital, well those contractors many times have excellent credit and can get construction funding from a bank that is extremely attractive and even makes the most seasoned RE Investor jealous.  Its simply about mindset and expectations.  Happy to discuss more a lenders perspective if you want.

@Justin Berry I second Mike's post about floridaregisteredagent. 

@JR Rivas when you say a commercial are you speaking institutional or private?  Is this property being held for long term or fix and flip?  
As a side not normally bank accounts are not opened for a property but for an LLC, are you opening an LLC for each property you own?

All things being equal, I have an investor that offers 30yr rental loan for investors. This is not my capital, I am simply a correspondent lender. Depending on Credit and LTV you can get pretty reasonable rates. I personally loan out capital for short term fix and flip and bridge loans. With my capital I don't care about credit but I DO CARE about your team, your plan, and exit strategy and the amount you are bringing to the table. I have "married" my capital and my investors capital to create the "BRRRR-fect" loan program if you will. If you would be interested in discussing the 30yr funding we can discuss

Being a Tampa FL resident I completely agree with @Alex J.'s post above.  Tampa and Sarasota have pockets but St. Pete is unique in that there are plenty of opportunities to get Du/ Tri/ QUad plexes and house hack at a pretty affordable rate.

@Supada L. I do not hold rentals for this very reason.  I stick to the private lending side.  Forgive me for maybe stating something that has already been stated and asking questions that already have been asked...

~  After all operating expenses were calculated were you expecting a $100 per month cash flow?
~  What was your "turnkey" purchase price? (I assume it was turnkey because you named a company that you bought it from, therefore I am sure they sold it as "turnkey"). Also because it was turnkey, as well your statement "But there have been a lot of fixings and left me with negative cashflow." leaves me to assume you were expecting the property to have been inspected and refurbished of any lacking issues?
~  With you being out of state did you calculate the costs of a PM into your operating expenses?

I am terribly sorry this is the situation you find yourself in, however this is much more common than you may think.  People invest into "turnkey" rentals, with the expectation they will build a portfolio to live off of.  I don't know what your numbers are but $100 net cashflow seems REALLY low.  I guess this is why I prefer private lending.  If I have invested $100,000 into a loan and its a long term loan, to an investor like yourself who is building a portfolio, I may charge 7% annual... just on the interest (not including principal I am making $583.33 per month... and I, as the lender, am not assuming the liability nor responsibility of that asset (taxes, insurance, tenant issues, broken sewer pipes, water pipes breaking etc..). As well if its an amortized loan I am also reducing my exposure over time.  I think more investors who are looking for "cash flow" should at least consider private lending as an option.

My advice, sale ASAP, even if at a discount.  The ownership environment is changing, especially with incoming political actors, and long term hold expectations may be upended with radical shifts in protections for property owners

@Andrew Rosenberg excellent recommendation, thank you

@Trysh Wahlig understood. I think thats a great idea, not to complicate it. If you decide that trying to get a loan from a traditional financing institution proves to be too cumbersome, if the assets are in FL, I can help I believe. I do not lend out my personal capital for long term loans (such as for 30 yr loans for Rental) but I do correspondent lending for a secondary market investor who funds the purchase/ refi of SFR, with an entity of the borrowers. These are great for BRRRR investors who want to maintain anonymity, asset protection as well not having those loans count against their personal DTI. These loan programs are based on personal credit yet are not base don personal DTI nor your personal income or tax statements. Wish you all the best.

@Brandon M. & @Kevin Hunter yeah sorry about that guys.  I'm still figuring my way around BP and I've had posts or comment flagged and removed because it violated community standards.  I am actually a local private lender, based in Tampa FL, and my goal is to find actually investors who are closing deals.  The same way that investors get tired of tire kicker wholesalers I get tired of tire kicker "investors".  To clarify I have two buckets of capital. 
The first bucket is mine, yes it's my capital. I source, process, underwrite, service and at the end of the day approve or deny every loan request. This bucket is designated for short-term (<12 mo.), NOO loans, made to entities. Fix & Flip, Bridge and Transactional Funding for wholesalers.
The second bucket I am a correspondent lender for a secondary market investor. Basically a broker. With their capital I can offer 30yr. loans for long-term hold rentals. I have built a great in-house product that combines mine and the 30 yr money and is great for BRRRR.
So at the end of the day I'm looking for real estate investors but from a lenders perspective.  I am also not looking to try and get a bunch of borrowers.  As you can tell I do everything myself, so I am VERY particular about who I lend to.  It's my capital and I'm running a business, so it's not the type of "private money" that so many gurus teach to find.  I expect a return and a healthy one at that.  But I can bring a LOT of capital to bear for those investors willing to build a long term relationship.  At the end of the day that's what it is all about.

@Shawn McCormick GREAT insight to the fact that wholesaling is a J.O.B.  Its definitely not passive, and it takes a tremendous amount of hustle especially if you are starting off without the large marketing budget behind you.