All Forum Posts by: Erich Beyer

Hey all, my brother and I own 19 units in Phoenixville PA and have just found a great deal. I've had my eye on this property for two years and it came up for sale yesterday. It was taken back by the bank from the owner. Here it is:https://www.redfin.com/PA/Phoenixville/219-High-St...

It is listed as 6 units but is actually 8. I went through the property yesterday with my contractor. We expect the numbers to look like this:

Purchase: 325k

Rehab: 75k

ARV: 650-700k

Each unit would rent for 750-800. We own a 5 unit up the street and recently had an appraisal done so I am confident in these numbers. The reason we are looking for financing is because we have not refinanced the 5 unit yet. We are looking for a partner who would fund some or all of the costs. We have a hard money lender we work with who would lend, but we would need the down payment and carrying costs. We can be creative and would consider straight loans or a JV. If it were a loan we would purchase rehab rent and refinance you out. If you wanted a JV we could discuss exits. If you are interested in working with us please let me know. Feel free to pm, email, or call. See my profile for contact details. Thanks for your interest.

A good way to start at your age IMO would be getting your real estate license. Sell real estate on the side for two years while in school and build up some cash and experience. After two years you shouldn't have a problem getting a loan, finding a property, and you'll have great experience.

I interned for a summer with insurance salesman and they loved selling whole life insurance because they made such a huge commission off it. In my experience it almost always makes way more sense to purchase term insurance, then invest what you want to invest. Both of those come with way less commissions and less restrictions. I would not buy the whole life insurance.

If you are buy and hold value investor it doesn't much matter. If you can rent it out with good cash flow relative to your debt it's OK if the equity fluctuates. There are always deals out there and if people are sitting on the sidelines then there's an opportunity with less competition, though I'm not seeing that today.

I've heard it both ways. "I flip houses because I don't want to deal with tenants". "I rent houses for the monthly cash flow". WeIl guess what? If you flip houses you have to deal with contractors, and if you rent houses you have to deal with tenants. Which is worse? I've flipped and I've rented, and have an opinion but wanted to get BPs input. I'll get the thoughts started. No tenant has ever cost me $40,000. Contractors. 

You said it yourself, he's not a motivated seller. I'd pass and spend my time working on deals that have more potential.

Sorry I meant unsecured LOC

Not a pro lender or a coach. If you're borrowing money for your down payment your coc return is infinity. So, when we borrow money for our down payment, we use that for the calculation. The point of the measure is given the same investment, could you make more somewhere else. So whether it's your money or someone else's, you want to deploy it to its maximum potential. So if you borrow 20k from a friend at 6% and are comparing two comparable investments, all else equal you'll want the one with higher cash on cash return. 

Tons of people go around asking people to be on their buyers list. A small fraction of these people ever find a deal. The way you show you are serious is if you have a deal. Also, if you get a deal, you post it on zillow rental manager/Postlets or whatever it is this week and Craigslist and you will have buyers literally lining up at the door (I've seen it). In this market investors are having way more trouble finding deals than anything else. Bottom line: get a deal. If it's that great a deal and you can't find a buyer it's not a deal. 

Friends and family. Our bank allows us to use our private investments from friends and family as our down payments. They just want to see the contracts we have with the interest we pay them.