All Forum Posts by: Frankie Renaldi

@Joseph ODonovan if we are for profit companies as investors why do we give them OUR data for free? We give them their only bait to put on the hook and we do it for free so they can charge us....genius business model, but I’m done playing that game. They can tank because of their greed and I’ll be sipping some scotch and smiling. No data = no traffic = no revenue. Time to fight back unless they want to pay us for our data 🤷🏻‍♂️

@Federico Gutierrez Zillow has been taking our free data and selling points of interest back to us for so long and its soooooooo freaking frustrating. Then they use our money as realtors and now investors to bump us out of a deal all together with their purchase program. It’s insane that we fund this madness. It would be amazing to have a countrywide boycott for an entire quarter and see how bad it hurts them. I can live without the 10 leads a month, but can they afford to lose that entire revenue stream across the country? Who knows. Just venting.

@Jake Garrity great post my friend. We just started purchasing investments in November 2018 and we have learned some hard lessons and definitely took a kick to the twig and giggle berries more times then we’d like to admit, but as we look back on every property we are always happy we took the leap. Keep up the great work! 

His lawyer drew up a proper mortgage and note.  Other than my word and my 12,500 downpayment he had no other assurances.  No servicing company.  I have a good name in the community and as a realtor in the same area he could do a lot of damage if I defaulted.  

Hi Stephen!  Thanks for jumping on the thread.  So financing was structured with a 3 month minimum interest payments but the balloon was at 6 months.  I could refi early but at least 3 months interest was due.  I would have been in and out of the deal in that 3 months but covid messed everything up.  My bank halted all refi's for PPP loans.  Pushed my refi about 6 days beyond my balloon but owner was ok with it.  I did put a down payment in good faith since negotiations were not all that satisfying to the seller...I put 12,500 down payment.  Closing costs on top of that were very minimal...1% transfer tax, tax reimbursements and some other small misc fees.  I did pay him his interest every month of 864/month until I refinanced.  First Keystone was not a part of this until the refi.  

The reason I did this the way I did, is my bank requires either a 1 year seasoning or a max refi of 70 of hud +repairs...since owner financing was technically a loan, I was able to do a cash out refi as soon as I was rehabbed and rented (minus covid obviously).   

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $84,000
Cash invested: $9,000

3 bed 1 bath cape cod, corner lot, fenced in yard, hardwood floors, good room sizes.

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

We like SFD (like multis as well, but SFD offer quick exit if capital is needed). We almost didn't look at this property. At the list price of 100k we assumed it was half way condemned. 1 bad pic in the front made it look like a 700 sq ft salt box. We decided to see it anyway and discovered a fantastic find. One of the only detached properties on the block, hardwood floors (needed finished), large bedrooms and amazing fenced in corner lot. Great property, now to make the deal

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

It was listed by owner. Called the owner directly set the showing and within an hour had the offer out. Listed at 99,900, offered 78,000. My Max was 84k his bottom line was 89k. We structured owner financing with guaranteed interest to help close the gap and I waved my commission. We settled on 84k with those terms and closed a month later. Only 7,500 in rehab (paint, fix hardwood, minor heating, and a fridge) and it is now worth approx 135,000 & rents for 1380/month no utilities included.

How did you finance this deal?

Owner financing for 6 months then cash out refi to 20 year commercial

How did you add value to the deal?

bought under market plus added value add in cosmetics, flooring, and appliances. Adding washer and dryer increased rent by 360/year.

What was the outcome?

Great stable property with good cashflow. No complaints at all!

Lessons learned? Challenges?

never discount a possible purchase due to the photos or a photo. Home doesn't have to be in terrible shape to have meat on the bone....and never ever let a deal die if you want it. Structuring the deal like I did with Brian was the bets way to make us both happy and both hit our numbers. Win Win and Brian and I have now conducted "realtor" related business and created a friendship.

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

I am the agent. Funding was done with First Keystone Bank in Bethlehem PA Mike Santiago was the lender.

Hey Chad wow small world.  Wasn't sure how many locals I would see with this being such a big group.  Thank you for the kudos.  I immediately ran over to Mandee to tell her about the thread and she spoke very highly of you as well with the deals you guys have done through Atonos.  Not sure how you have everything structured, but maybe there is some business for us to do together.  We have your cell so we will start a text thread sometime today.  Thanks again for replying on the thread!

Bryan Thank you so much for the Kudos.  Also, lets keep each other in mind for Realtor Referrals.  Myself and my wife do roughly 20-25 million in sales per year (ave sales price is 215k).  Approx 40% of my business is with investors and the rest Resi.  Unfortunately don't have much knowledge in commercial other than large multi units.  Please email me so we can connect and hopefully trade some clients.  Love connecting with like minded people and great referral partners.  

Investment Info:

Single-family residence buy & hold investment in Nazareth.

Purchase price: $95,000
Cash invested: $16,000

Single family detached 3 bedroom (one walk through) 1 bath. Nice fenced in deep backyard. Estate property needing some work.

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

Price point in this school district is never ever available. Knew it was a quick and high rental once cleaned up.

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

On mls and being sent to auction. Listed at 129,900. Offered as is for 85k and landed on 95k.

How did you finance this deal?

First deal and used traditional investment prop financing. Used my HELOC on my house to pay for the repairs and then 4 months later did a cash out refi into a 20 commercial loan.

How did you add value to the deal?

Electrical, paint, chimney liner, roof

What was the outcome?

Unfortunately still have 16k in due to an under appraisal. Property is now worth 170+k. Rent roll is 1385/month and PITI is 935 after refi. Currently going through a recast to drop interest so profit will go up!

Lessons learned? Challenges?

Chimney liners suck, basements get wet, and never be afraid to buy your first deal...it will be worth it and will shake the nerves off to get your second and third and fourth.

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

I am an agent. Cash out refi was done with First Keystone Bank (my branch is in Bethlehem0. Mortgage rep was Mike Santiago

Investment Info:

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

Purchase price: $161,000
Cash invested: $14,000

This is two SFR detached buildings on 1 deed. 1 - 4bedroom cape cod and 1 - 2 bedroom apt above a 2 car garage. Buildings sit on a 3/4 acre lot w/ 2 septic systems.

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

This property had been operating as a 2 family illegally since 1968 in plain sight. I knew we could buy low due to that (and no inspections) with an easy approval for 2units. Virtually no updating needed (5k total with painting) and the appeal process for 2 units. 450 dollar app fee & 30 minutes in front of zoning & we got the green light. Main house rents for 1500 & apt w/ garage rents for 1200. 2700 rent roll, PITI 1600 after refi on a 20 year commercial and now the value is 255-260k.

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

Grandfathers home of a long time school friend

How did you finance this deal?

private money for 4 months and cash out refi to 20 year commercial

How did you add value to the deal?

got formal approval for 2 units

What was the outcome?

homerun

Lessons learned? Challenges?

always look for a value add especially when it involves an easy path to a favorable zoning ruling

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

I am an agent. Lender was First Keystone Bank (my branch was in Bethlehem Pa - Rep is Mike Santiago)