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All Forum Posts by: Eugene Nilus

Eugene Nilus has started 3 posts and replied 27 times.

Post: How often you need to show POFs?

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13

Hey Wholesalers,

Would anyone be interested if we can help you show the POFs when you acquire your next property?

Best,

Eugene Nilus

Providing Funding for Fix and Flip | Transactional | EMD

Post: Duck Fund EMD

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13

I didn't use it. We do provide our own EMDs and Transactional Funding. 

We go up to 500K for EMD and we can bring more than 100mm in transactional funding.

Post: Looking for a new strategy

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13

Agree with @Brandon P. 

It seems like at this moment you need active income.

Real estate can generate income for you but it takes time. I would also suggest doing what you can with your skill set.

For example, you could create a video course about XYZ, the only that you know that you can teach someone. Perhaps your kids could help you with video editing, marketing, and other things.

While you are getting active income, you could potentially look at wholesaling or fix and flip.

When you wholesale, you don't need a license and you don't need money. You need to find a buyer and a seller. There is more that goes into it but you are essentially a middle man.

For fix and flips you don't need a credit if you make relationships with asset based hard money lenders. With no experience you may have a bigger interest rate but if you have good margins on the hose, you should be OK. Also, I would suggest to partner up with an experienced flipper for the first 2-3 flips.

Good luck!

 

Post: Who is currently working on seller carry back deal?

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13
Quote from @Susan Sommerman:

we closed in October on a $950,000 9-unit building with $50,000 down and 6% mortgage amortized over 30 years with a 15 yr cash out. In addition, owner loaned us $100,000 at 6% simple interest for one year to make major repairs (installed heat pumps, replaced boiler (for heating water only), replaced some siding and major roof repairs.)

We were very clear with each other what we each wanted out of the deal. Owner didnt need a lot of cash out (he had recently sold a CA home) and is now getting same monthly income he had previously without the headache of maintenance and management.

Building was poorly managed and rents waaaay below market, which is where we saw value. We didnt have a lot of cash to invest (2 partners, each put in $30,000 at closing) and wanted to leverage as much as possible. We raised rents almost 100% (on average). 30% upon closing and 70% 3 months later (all were on month to month leases and we gave legal notice). We used the notebook method with everyone and most suggested a new rent higher than the one we had in mind. We also offered annual leases which most were glad to get. We asked one tenant to leave (5 pets--we told them they could stay if they found homes for the pets, as it is a no pet building), and we had it rented by the time they moved out. 

We will have to repay $100,000 loan (+ $6000) in September and probably will each put in another $40,000 to 50,000 to do so. But with all major repairs done and a cash flow of $4000/month (with healthy allowances for maintenance and cap ex) we hope to start taking a monthly cash out in a year or so....

 @Susan Sommerman that's great. Congratulations! Sounds like it was a well worth it deal to step into. Did you have to bring 100K to the closing table before seller gave you a note or the seller is on LLC with you for now? How did you structure 100K seller carry back?

Post: Who is currently working on seller carry back deal?

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13

Hey friends,

Who is closing multifamily deal with seller carry back at a moment or is closing soon?

What does the deal look like and how do you structure it?

Post: DSCR loan for motel style property?

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13

I may have someone. 

What is the address?

Quote from @John Currey:

I've been listening to several of the BP podcasts mentioning seller financing. It's sounds like a great tool at times. What I don't understand is how you get the money to people. 

let's say you buy a 100k house on seller financing with 0 down and 1k a month payments. Am I mailing a check to the seller every month? 

pace Morby tells a story about buying a truck on seller financing, how would he make payments on the truck? 

 @John Currey, essentially it's between you and the seller in case you are buying it.

In your example, the house needs to be free and clear if you are buying for 100K with 0 down and 1K a months. If house is not clear and still has mortgage on it, you can do sub 2 + seller finance.

In seller financing, the seller and the buyer create an agreement and the seller carries a note that the buyer needs to pay. The seller in this case is like a bank.They may also carry a deed if house is free and clear. (depends how you structure it).

You, as a buyer, need to send money to the seller each months (or whatever the contract says between S and B). The seller would need to provide you a bank account.

Using 3rd party services could be a good idea like @Chris Seveney mentioned above

Post: $20K Monthly Cash Flow - The Challenge is On! Seeking Your Guidance

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13
Quote from @Michael Norwood:
Quote from @Eugene Nilus:
Quote from @Michael Norwood:

Hey BiggerPockets family!

My wife and I (mid-40s) are motivated W2 earners with a rental property under our belts, eager to expand our real estate portfolio and create significant passive income. We've set ambitious goals and are open to exploring diverse strategies to achieve them. Here's our financial blueprint:

Key Parameters:

  • Investment horizon: 10 years (2024-2034)
  • Goal: $20,000/month cash flow from real estate
  • Investment capacity:
    • Years 1-4: $80,000 - 100,000/year
    • Years 5-10: Up to $200,000 - $300,000/year

Seeking Wisdom for Optimal Strategies:

  • Time constraints: We have busy schedules, so low-maintenance options are preferred.
  • Cash flow priority: Our primary focus is generating steady monthly income.
  • Open to possibilities: We're receptive to various models, asset types, and strategies that align with our goals.

Initial Explorations:

We've begun considering possibilities like:

  • Single-family rentals (SFRs): Potential for consistent cash flow and appreciation, but require varying levels of management.
  • Vacation rentals: Potential for strong cash flow, but seasonality and management considerations.
  • Syndications: Access to larger deals, professional management, and diversification, but less control and potentially lower returns.
  • REITs: Passive income with minimal effort, but returns might not reach our target.
  • Creative financing: Options like seller financing or joint ventures to potentially accelerate growth.

Community Wisdom Requested:

We're eager to tap into the collective knowledge of this community! Share your insights on:

  • Optimal strategies: Which approaches have proven successful for reaching similar goals, considering our time constraints and cash flow focus?
  • Recommended models: What specific models or asset types would you suggest we explore?
  • Market insights: Are there particular markets or regions ripe for investment, given our timeline and objectives?
  • Experience-based tips: What lessons have you learned that could guide us on our journey?

We're open to all ideas and perspectives! Thank you for sharing your expertise and helping us chart a path toward financial freedom through real estate.

Excited to learn from the best!

 @Michael Norwood, I was literally thinking about the same thing.

I am going to share with you my strategy that I was thinking of implementing.

Strategy:

1. Buy 20 4-plexes

2. Each 4-plex has to produce $1,000 per months from 4 units meaning 1 unit = $250 per months

3. Assuming you are not using other people money and you have 100K to invest each year, consider buying 2 4-plexes per year within first 4 years

What does it look like?

You spend 50K per one 4-plex

Downpayment = $40K with closing cost and other cost of $10K

If downpayment is $40K and it's 20% of the purchase price, then the purchase price needs to be around $200K per 4-plex. Absolutely doable depending on a state you are buying. 

So after 4 years, you have 8 4-plexes that produce 8K per months.

4. If you don't spend your income from 8 4-plexes and continue to invest new money now your investment size is 200K per year, now you can:

- buy 4 4-plexes per year

- you need just 3 years to be at 20 4-plexes

5. And now, you reached your goal within 7 years

Option 2

1. Repeat steps 1 through 3

2. If you buy each 4-plex once in 6 months, you are potentially creating:

a. Bought 1st 4-plex at 6th months - after 4 year mark you generated  - $42,000

b. Bought 2nd 4-plex at 12th months - after 4 year mark you generated - $36,000 

c. Bought 3rd 4-plex at 18th months - after 4 year mark you generated - $30,000

d. Bought 4th 4-plex at 24th months - after 4 year mark you generated - $24,000

e. Bought 5th 4-plex at 30th months - after 4 year mark you generated - $18,000

f. Bought 6th 4-plex at 36th months - after 4 year mark you generated - $12,000

g. Bought 7th 4-plex at 42nd months - after 4 year mark you generated - $6,000

h. Bought 8th 4-plex at 48th months - after 4 year mark you generated - $0,000

2. So here's the math:

By month 30th, you'll have $60K and you spend another 40K to buy house #9. You have 20K left. You house 9 starts generating income.
By month 36th, you'll have $116K and you spend another 80K to buy house #10 and #11. You have 36K left. You house 10 and 11 start generating income.
By month 42nd, you'll have $180K and you spend another 160K to buy house #12, #13, #14 and #15. You have 20K left. Your houses 12-15 start generating income
By month 48th, you'll have $224K and you spend another 200K to buy house #15, 16, 17, 18, and 19. You have 24K left

So after 4 years, considering the best case scenarios (you find houses to buy, nothing breaks, and houses are not empty), you could have $20K per months

Best,

Eugene Nilus

CEO/Founder, Y2 Lending LLC

Co-Founder/Fund Manager, Y2 Capital Group

https://y2lending.com

@Eugene Nilus 

Wow, you've laid out a detailed and ambitious plan! I love your structured approach and the acceleration strategy in Option 2. Could you expand on how you anticipate finding 4-plexes at your target price point and managing vacancies across such a large portfolio?

Hey @Michael Norwood,

The approach is based to find houses that are less than 200K so I would start: 

1. looking at Midwest states. Probably simple search on marketplaces could be lead me to a few states and cities.

2. Connect with brokers.

3. Get a list and started reaching out directly

4. Connect with wholesalers

5. Join Facebook groups in those cities

6. Find property management company to manage a portfolio since I'd be out of state

It is a more generic approach but hope it helps

Feel free to reach out with any questions!

Post: Buy and Hold Real Estate Pays Off Over the Long Term

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13
Quote from @Jennifer Reinhardt:

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $489,000
Cash invested: $100,000

Quadplex, purchased in 2016. Updated and held. Value has more than doubled to over a million dollars with holding and updating the property.

What made you interested in investing in this type of deal?

I like that the area was being invested in, you can walk to the bars and restaurants in downtown Castle Rock. I like that you can live in one unit while renting the others. Being a multi-family deal, it was like buying 4 homes for the price of one.

How did you find this deal and how did you negotiate it?

I found it through my real estate team. We find off market deals. Please contact me at www.realestateambitions.com if you are interested in off market deals.

How did you finance this deal?

Conventional

How did you add value to the deal?

The apartments were rented at the beginning, and over time the rents were raised. The units were original, so they needed new cabinets, bathrooms, flooring, paint, everything. We also added exterior work including windows, and systems repairs. It is important to keep the property nice to match the comps in the neighborhood, so it was fixed up.

What was the outcome?

The value of the building more than doubled over 7 years. We are not selling it, because it will keep increasing. I love the area.

Lessons learned? Challenges?

Multi-family real estate takes cash reserves, and is a long term play. It is super important to do inspections and get the negotiations correct so that the numbers work.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am a real estate broker and find off market deals.

My team manages over 9,000 rentals so we have access to property management and vendors, as well as off market deals.


 Seems like a nice deal with a great appreciation. 

Congrats!

Post: $20K Monthly Cash Flow - The Challenge is On! Seeking Your Guidance

Eugene NilusPosted
  • Investor
  • Bay Area, CA
  • Posts 35
  • Votes 13
Quote from @Michael Norwood:

Hey BiggerPockets family!

My wife and I (mid-40s) are motivated W2 earners with a rental property under our belts, eager to expand our real estate portfolio and create significant passive income. We've set ambitious goals and are open to exploring diverse strategies to achieve them. Here's our financial blueprint:

Key Parameters:

  • Investment horizon: 10 years (2024-2034)
  • Goal: $20,000/month cash flow from real estate
  • Investment capacity:
    • Years 1-4: $80,000 - 100,000/year
    • Years 5-10: Up to $200,000 - $300,000/year

Seeking Wisdom for Optimal Strategies:

  • Time constraints: We have busy schedules, so low-maintenance options are preferred.
  • Cash flow priority: Our primary focus is generating steady monthly income.
  • Open to possibilities: We're receptive to various models, asset types, and strategies that align with our goals.

Initial Explorations:

We've begun considering possibilities like:

  • Single-family rentals (SFRs): Potential for consistent cash flow and appreciation, but require varying levels of management.
  • Vacation rentals: Potential for strong cash flow, but seasonality and management considerations.
  • Syndications: Access to larger deals, professional management, and diversification, but less control and potentially lower returns.
  • REITs: Passive income with minimal effort, but returns might not reach our target.
  • Creative financing: Options like seller financing or joint ventures to potentially accelerate growth.

Community Wisdom Requested:

We're eager to tap into the collective knowledge of this community! Share your insights on:

  • Optimal strategies: Which approaches have proven successful for reaching similar goals, considering our time constraints and cash flow focus?
  • Recommended models: What specific models or asset types would you suggest we explore?
  • Market insights: Are there particular markets or regions ripe for investment, given our timeline and objectives?
  • Experience-based tips: What lessons have you learned that could guide us on our journey?

We're open to all ideas and perspectives! Thank you for sharing your expertise and helping us chart a path toward financial freedom through real estate.

Excited to learn from the best!

 @Michael Norwood, I was literally thinking about the same thing.

I am going to share with you my strategy that I was thinking of implementing.

Strategy:

1. Buy 20 4-plexes

2. Each 4-plex has to produce $1,000 per months from 4 units meaning 1 unit = $250 per months

3. Assuming you are not using other people money and you have 100K to invest each year, consider buying 2 4-plexes per year within first 4 years

What does it look like?

You spend 50K per one 4-plex

Downpayment = $40K with closing cost and other cost of $10K

If downpayment is $40K and it's 20% of the purchase price, then the purchase price needs to be around $200K per 4-plex. Absolutely doable depending on a state you are buying. 

So after 4 years, you have 8 4-plexes that produce 8K per months.

4. If you don't spend your income from 8 4-plexes and continue to invest new money now your investment size is 200K per year, now you can:

- buy 4 4-plexes per year

- you need just 3 years to be at 20 4-plexes

5. And now, you reached your goal within 7 years

Option 2

1. Repeat steps 1 through 3

2. If you buy each 4-plex once in 6 months, you are potentially creating:

a. Bought 1st 4-plex at 6th months - after 4 year mark you generated  - $42,000

b. Bought 2nd 4-plex at 12th months - after 4 year mark you generated - $36,000 

c. Bought 3rd 4-plex at 18th months - after 4 year mark you generated - $30,000

d. Bought 4th 4-plex at 24th months - after 4 year mark you generated - $24,000

e. Bought 5th 4-plex at 30th months - after 4 year mark you generated - $18,000

f. Bought 6th 4-plex at 36th months - after 4 year mark you generated - $12,000

g. Bought 7th 4-plex at 42nd months - after 4 year mark you generated - $6,000

h. Bought 8th 4-plex at 48th months - after 4 year mark you generated - $0,000

2. So here's the math:

By month 30th, you'll have $60K and you spend another 40K to buy house #9. You have 20K left. You house 9 starts generating income.
By month 36th, you'll have $116K and you spend another 80K to buy house #10 and #11. You have 36K left. You house 10 and 11 start generating income.
By month 42nd, you'll have $180K and you spend another 160K to buy house #12, #13, #14 and #15. You have 20K left. Your houses 12-15 start generating income
By month 48th, you'll have $224K and you spend another 200K to buy house #15, 16, 17, 18, and 19. You have 24K left

So after 4 years, considering the best case scenarios (you find houses to buy, nothing breaks, and houses are not empty), you could have $20K per months

Best,

Eugene Nilus

CEO/Founder, Y2 Lending LLC

Co-Founder/Fund Manager, Y2 Capital Group

https://y2lending.com