All Forum Posts by: Michael Slockers

@Roger R. Without listing a dollar figure or strategy it's tough to advise...

... I'm sure you can cash flow in any of those markets you listed!

@Grant Doyle

If the numbers work, go for it. Flat roofs are a bit of a downside especially around here... But still, if there numbers work...

But seriously if the numbers don't with, just get out.

How much rent income would it bring and did you factor conservative for flood insurance and maintenance?

Are you inheriting tenants?

@Carson Smith what do you see in this deal? Are you getting excited about these numbers?

Also your comment about an equity play is confusing because you are looking to refi this into a 30-yr....

Maybe would help to revisit your own goals for this property or your investments in general.

I tend to compare any new potential deals to my existing portfolio, asking myself if it would perform as good as my best properties, or even as good as my worst properties. Do you have other properties where you could look at this in a similar fashion? How does this compare?

This one would be a pass for me.

@Quinton Bogle plenty of local Banks will do business type loans with LLCs, but generally not on the same terms as a conventional loan.

If you want conventional, keep it in your own name. You could transfer to LLC after you get the loan assuming you are aware of potential risks of doing that.

@Gary C Jones

There are several good ones...

I use Integrity quite a bit

@Jason Selle I'm not sure what all your goals are but I think each of those 3 markets could meet a general cash flow and BRRRRR goal....

.... But so could hundreds of other metros...

One suggestion is to either build a team on the ground, spend some time on the ground, or purchase in rent-ready condition. I think managing a purchase/rehab from a distance could be quite a challenge (as a newbie in an unfamiliar market). I do wish you best of luck, feel free to reach out if you need help in Tulsa!

@Asprulole Vue

How are you funding the purchase? Cash?

I'm not sure all the details but if there is any rehab involved, you should get that rehab money onto the settlement statement. 6 months or a year may be the waiting period for a typical mortgage. I think local Banks and portfolio lenders could do it in a shorter window of time typically.

I have done this before where we did a bridge loan and closed it within 3 months of the purchase on a 30 year fixed. I used Sierra Pacific to get that done. Maybe call them up.

@Asprulole Vue How soon after what?

Hey there @Dakota Adney

At least two important details missing:

Does said relative have money and want to fund the deal? If not, what funding method would they use had they "won the contract"?

My thoughts:

Definitely DO NOT do Option 2. Sounds like it will end bad and won't really get where you want to be.

Definitely DO NOT do Option 3. If you're going to sell it to them, may as well just assign it and not pay all the selling costs

In Option 1, are you saying you would buy it in cash? Then just sell to them on owner financing? I would NOT recommend getting a bank loan and then turning around and "owner-financing" it. That isn't a win in my book.

Since you kicked this off with wanting to BRRR, I suggest you stick to your plan. Figure out how to fund it (a whole different discussion), and include your relatives on the next one as a partner, if you insist. BRRRR implies you want a long term cash flow play, plus some of your money back. I don't think most of your options really get you there... So BRRRR that sucka!

@Nik Stophel almost certainly you should jump in! You will learn way more that way.

You don't have to buy a property that needs a lot of work.... Why not look for something that is rent ready?