All Forum Posts by: Heyward Lovett

I was actually joking about the complicated comps part. I'm really looking to learn how to (through your tenured recommendations of course) generate comps for multi unit properties that are surrounded by single family properties? I am purchasing a quadplex and a duplex that needs extensive rehab work. I want to do my best to not over shoot due to bad comp usage. Thank you!

Congrats for considering taking leap into real estate investing! I understand what you're going through in an expensive market. I'm in NYC and $100k won't land you a studio apartment. I followed most of the advice learned listening to podcasts and reading about out of state investing and got into the Virginia market. So far so good. The properties have been self sufficient since the ink dried. In fact, I signed and had all docs notarized right here in NYC. Now is the time to get it done!

Investment Info:

Condo buy & hold investment.

Purchase price: $50,000
Cash invested: $50,000

This cash flowing rental property is 1 of 2 that are the by product of a 1031 exchange

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

This deal was interesting because we were under the time constraints of the 1031 exchange rules, we were rookie investors looking to cash flow while minimizing those costly rookie mistakes, it was a sellers market and COVID's grip on the economy and the movement of goods and services had such a negative affect on the cost of materials that we decided the BEST case scenario for us would be to land the funds in a turnkey property that was cash flowing immediately.

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

We have a "rockstar agent" on our team that new the properties in the area. She knew the best areas to invest in. She also had contractors in her contacts that was able to assist in walkthroughs to better determine what our BEST case scenarios were and could be. We were able to negotiate the terms a little because we were coming in as cash buyers and we made offer on the former owners 2nd condo in the community.

How did you finance this deal?

Cash

How did you add value to the deal?

We've added value (TBD) by making small cosmetic repairs like windows, screen doors, fixing leak in bathroom and the deck attached one of the units

What was the outcome?

We're now about to reach the 6 month seasoning period that most lenders require and currently in the process of closing (waiting for appraisals....hence the TBD mentioned in the above comment) on a cash out refinance loan that comes w/a line of credit for up to 4-5x's available liquidity.

Lessons learned? Challenges?

The biggest lesson learned is to get off your tail and get in the game effectively immediately! We are about to reach our 1 year anniversary as investors and we've closed on ($40,000) and sold ($102,000) a property that was a partial seller finance ($25,000 out of pocket) on the $40,000 w/zero points, penalties or other interest payments. This allowed for a smooth 255% mark up of in that property : ) The only challenge was getting the 1031 done in the time allowed.

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

We have our "core 4" locked in, so if anyone needs an agent, lenders, wholesalers, contractors (both class A and regular handy persons) or a qualified intermediary...please feel free to shoot me a note.

Investment Info:

Condo buy & hold investment.

Purchase price: $50,000
Cash invested: $50,000

This cash flowing rental property is 1 of 2 that are the by product of a 1031 exchange

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

This deal was interesting because we were under the time constraints of the 1031 exchange rules, we were rookie investors looking to cash flow while minimizing those costly rookie mistakes, it was a sellers market and COVID's grip on the economy and the movement of goods and services had such a negative affect on the cost of materials that we decided the BEST case scenario for us would be to land the funds in a turnkey property that was cash flowing immediately.

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

We have a "rockstar agent" on our team that new the properties in the area. She knew the best areas to invest in. She also had contractors in her contacts that was able to assist in walkthroughs to better determine what our BEST case scenarios were and could be. We were able to negotiate the terms a little because we were coming in as cash buyers and we made offer on the former owners 2nd condo in the community.

How did you finance this deal?

Cash

How did you add value to the deal?

We've added value (TBD) by making small cosmetic repairs like windows, screen doors, fixing leak in bathroom and the deck attached one of the units

What was the outcome?

We're now about to reach the 6 month seasoning period that most lenders require and currently in the process of closing (waiting for appraisals....hence the TBD mentioned in the above comment) on a cash out refinance loan that comes w/a line of credit for up to 4-5x's available liquidity.

Lessons learned? Challenges?

The biggest lesson learned is to get off your tail and get in the game effectively immediately! We are about to reach our 1 year anniversary as investors and we've closed on ($40,000) and sold ($102,000) a property that was a partial seller finance ($25,000 out of pocket) on the $40,000 w/zero points, penalties or other interest payments. This allowed for a smooth 255% mark up of in that property : ) The only challenge was getting the 1031 done in the time allowed.

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

We have a our "core 4" locked in, so if anyone needs an agent, lenders, wholesalers, contractors (both class A and regular handy persons) or a qualified intermediary...please feel free to shoot me a note.

Hi all. I'm looking to have the discussion about using the 203k loan to get into my 1st "House Hack" situation. I'd like to explore pros and cons. I'd like to speak w/potential 203k lenders. I'm looking to get a 203k deal done before 2021 ends. Are you who I need to speak with?

@Jason Shackleton let’s hop on a call to discuss further

I'm looking for a line of credit against my properties so I can buy more investment properties. Is it more beneficial for me to borrow under the LLC or my personal name? Properties are owned free and clear.

@Andrew Schrader I’ve heard of situations like this

@Adam Martin thank you

@Tesho Akindele perfect. Thank for the insight. How’s the market looking in your neck of the woods?