All Forum Posts by: Christopher Lombardi

@Brian Hagan Either is fine, but for your first one maybe it makes sense to pay the extra amount to an attorney to ask all the questions you need to and next time around you can do it yourself with legal zoom.   Best of luck

@Simon Stahl I spoke to someone from Morris invest and thought it sounded pretty shady. The guy is trying to convince everyone why buy and hold is a great strategy yet his whole business is selling investors like you his properties. They also say you will earn 9% a year on the investments but that is a pretty poor return for a single family home. There are much better ways to invest. Just think, he is a long term investor, why would he be selling unless he knew the house isn’t worth what he is selling them for.

@Jacob Anstaett have you looked into zoning to see if it’s possible to subdivide and build multiple houses?

@Deepti Mandava I would go multifamily.  If the economy takes a hit people still need a place to live.   Retail/Office properties are tough asset classes to be in in a recession.  You'll see those properties vacant for years while residential units will stay full.   Best of luck.

@Marsha Grinion for something like that you can almost go anywhere. That type of loan is pretty standard. Any local bank can do it. I would try lendingtree.com also. Lenders compete to give you a good deal.

@Cody Furman if they put them up in there own unit or on a private deck of theirs, I would let it slide for now and wait until they move out to collect any damages from their security deposit. If they are putting it in places on your building that isn’t part of their private unit I would not allow it. You are not responsible for paying for damages to their car. Tell them to file a police report.

@Megan Kline If its your first property, I would recommend self managing so you get the hang of how things work. As for minimum cash flow, that really is all relative and depends on a lot of different factors. Its not something that can be answered generically. I will say, however, that you shouldnt worry so much about cash flow and look more at the actual return the property will be providing you. You should learn how to calculate Internal Rate of Return (IRR) on a stream of cash flows. There are some good Youtube videos explaining this. Hope it helps.

@Jide Alufa I Would recommend looking at an investment on a deal by deal basis. If you find a great deal in a single-family house that cash flows you’ll be in good shape, and if you find a great deal on a multi family go for that. A good investment is a good investment When starting out. However, If you really want to scale multifamily is the way to go but of course single family is easier to get involved with and it can start you off in the right direction

@Connor Martin, you should form the LLC anyway to limit your own liability. Since you are looking to create a business here if you start of treating it like a real business it could help you down the road. Its perfectly fine to borrow from your friend as down payment with the LLC responsible for paying it back. Just keep in mind you will have to get a commercial loan with the LLC so your interest rate will be a little higher and you will have to pay it back in 5,7, or 10 years depending on what kind of loan you go with. As for your private investor, come up with a plan that works for him/her and also allows the property to cash flow. I have taken private loans from friends where I pay them interest only and anytime they need the principal portion back they need to give 6 months notice (just incase its tied up in a property at any given moment) and they get it back. You can also set it up that they get principal and interest and it gets paid off as time goes on. If you are looking for help with building out a model, look up on youtube financial models for real estate. They have some good videos explaining in detail how to do it in excel.

@Brandon Frulla I believe government student loans would not be allowed.  But private loans with a private company, you are allowed to take out the full amount.  Maybe the rules have changed in the past 15 years so don't take my word for it but I would believe as long as it went to the school, any funds left over after tuition is paid is yours to keep.