All Forum Posts by: Francesco Labbate

 Hi @Van Der Fran (can't mention properly with link for some reason) I would say (in simple words) that Beach is not for the aggressive investor, unless you have very important and qualified introducers (you know what I mean) for getting real deals.

Sometimes you can do good deals by flipping, but negotiations are difficult, sometimes long, competition is sometimes insane as they offer even more than wise, and for some reason many many contractors charges more than normal for working on the Beach (and, given that even normally they are difficult subjects, this add another difficulty.

Final pleasure, City of Miami beach is crazy (I proved on my skin) and they are really picky.

Ah, forgot to mention that if you plan to buy and rent to hold, revenues are ridiculously lower than in other places. Condos especially.

That should suggest you to rent a condo if you really love to live there (I suggest you Downtown in that case, but that is really personal) and use your money/loan to invest somewhere else.

Always available to discuss, for the rest.

Cheers

Hi @Jared Cacciapaglia   also consider that using a private lender will allow you to present offers as "cash offers" and close in a short timeframe, all things that should make your offer stronger and more appreciated by the seller.

This should grant you better sale conditions, or at least to avoid being kicked off the deal (many sellers do not deal at all with financing contingency offers, as you surely know).

I had hard times in getting offers approved by using the conventional financing…

Of course you need to make your numbers before to proceed with private lending as the interest could be eating out the profit, but for flippings that's ok

Jerry, my compliments.

This should go to all those young guys complaining about finding a good job and passing the day drinking and playing playstation.

The world is for the smart and determined. I always relied on persistence and you show you have it.

See you around.

Fra

I am also a fan of the strategy of taking the equity out of a deal, of course, this is the only way to achieve a quick growth of the portfolio.

Also, don't minimize the fiscal aspect of the point: cashing out the equity from a deal means not only you have the money back and cash flows with infinite percentage return, but also that the money you have got is tax free. More, it's a debt, whose interests will create you expenses deductible from your income. Several things make this my best investment strategy.

Obviously, the problem (that I am currently working on) is to find a financial institution (private lenders are too much expensive) that is willing to refinance a property just after the purchase/remodeling/rent. They are actually asking for at least 12 months of performance or they say they have to finance a % of the purchase price. Of course this does not work as does not count the remodeling added value which is the simple success key.

That is good also for investors you could advice: I would plan a joint venture with them participating to the profit on a certain % (instead of asking a fee upfront), so you would remain with a % of a stable return, while your investor could finance back the money from the property and start over again. It's a win win situation in my view.

Sorry for being so simple but the space is limited.

Anyway good discussion points

Thank you all for your help, I am a dreamer and still wonder there will be a GC willing to cooperate :D

Thanks @Raymond B.  for the info I am just trying what you said.

Had no time yet to explore all functionalities…

;)

I see thanks for info, I need to dedicate some time to this search, I am based in Florida therefore I need to find the equivalent in the area.

I will find a way or another…

Keep in touch

Good job so far, my compliments.

May I just ask which financial institution is actually facilitating you in financing the properties on the after-rehab evaluation? I am a convinced fan of the buy and hold strategy, of course with this financing strategy implemented which is essential.

So far I had problems in financing that way as I have been proposed to get a certain % of the value, intended as the lower between the purchase price and the appraised value. Which of course does not work. Otherwise, I was supposed to wait for one year to base the evaluation on the appraiser only, which is not my intention.

Therefore I am currently reselling but I guess tax impact will be not so nice in the future.

Thanks for any info and good luck for your target

F

Hi Elizabeth could you eventually mention something about that tax strategy to optimize returns?

Some additional details would be welcome, maybe they can be emulated somewhere else, if applicable.

Thanks

Francesco

Thanks @Jon Huber, I will surely be active, it's the way I am and the way I take my business…

See you around here.

F