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All Forum Posts by: Franco Li

Franco Li has started 27 posts and replied 208 times.

Post: Any tips for us new investors and where to start?

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88

Welcome to the both of you. I think you want to start reading up on different real estate investment strategies and align yourself with a strategy that meets your investment goals. Check out different websites, especially BP, and more importantly, develop a strong understanding of how to run your investment returns. Thats key! 

Post: Question for Lenders and Underwriters

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88

@Andrew Postell

Thanks for your time on this. I guess my question is more for underwriters who lend to rental strategies instead of flips. I figured from my experiences as well, that lenders seem to care more about the credibility and liquidity of a borrower - and rightfully so - but they often don't consider the actual investment value of the home. As a lender, don't you think that would be quite advantageous?

FYI - these questions are posed because my staff and I are trying to create an appraisal of sorts on investment properties, specifically for lenders. We think this would add incredible value, and technically the fees for the analytics would be passed down to the borrower; so all in all, the lender won't face additional costs and make better calls on their lending opportunities. Would love to hear your thoughts on this as well! Thanks.

Post: Owner Occupational Rental - First Time Buyer

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88

Let me put it this way. If you are putting down 3400, and any net revenue above 3400 is a profit, you seem to be in a great position. Awesome find!

Post: Question for Lenders and Underwriters

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88

Hello All! I'm very interested in hearing from lenders on how they assess the actual investment that they may be lending to. Understandably, the lenders perspective is to investigate a borrowers liquidity and debt servicing capability, but what methodologies do you use to review the actual investment? Do lenders actually model out the cash flow of a rental property or a flip? 

Thanks!

Post: Rental purchase question

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88
High-level this seems like a fantastic opportunity. Out of curiosity, what is your expected net income from this? Will you be managing this yourself or outsourcing? Are these guys section 8? Theoretically you'd be getting in the teens on cap rate but am wondering how difficult it will be when you include all the expenses. Good opportunity though!

Post: Owner Occupational Rental - First Time Buyer

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88
1% down seems like the best deal ever! Is that a typo by chance? Because that means you'd be completely levered, which means you'd be making money from nothing! In all seriousness, you should have a pre-approval and when you scout for properties make sure you understand the market you're looking at. Consider the expenses and taxes, and most importantly, decide how you will manage it or just be a passive investor and outsourcing. Make sure your purchase agreement has an expiration date in case something goes wrong. And lastly, make sure with absolute certain - not impossible btw - that your numbers work. Good luck!
I don't have lead protection coverage but I have Allstate and my agent seems to be able to give me anything I want. Which insurer did you ask?

Post: Making an offer on first deal

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88
Would always make a lower offer just because you'll most likely always get a lower price than listing - with the exception of sellers markets where the demand just drives a premium on every listing. Don't low ball the guy, but negotiate because if you don't negotiate then it'll be your loss! Good luck you seem to have a good opportunity!

Post: Looking for a Real Estate Entrepreneur to Interview!

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88

Would also be interested to help as well if you want. Can shoot me an email to discuss more.

Post: Tenant Passed Away (Prepaid Rent)

Franco LiPosted
  • Vendor
  • New York, NY
  • Posts 217
  • Votes 88

I've had an instance where my tenant committed suicide (outside of the home - but god bless his family) and the transition was quick. The family retrieved everything almost immediately, and of course some investigators came and looked over everything, but since there was no real legal issue, we re-listed almost immediately - without telling people the last tenant passed away there and it might be haunted of course...