All Forum Posts by: Colby J.

@Jamie Wooley 

After a quick look this bid seems like quite a good deal to me, especially for the total number of rooms you have listed here.  The other big factor to weigh in would be the total time for the rehab to be completed.  Sometimes the cheapest isn't always the best when it comes to time and quality.  Remember to get a few references for this GC from recent clients to get a good idea of how quick the work will be done.

If you're planning to flip this property always keep this in mind:  Time = Money

The longer you have to hold this property the less profit you will make on the back end.

Foreclosed property that I just picked up last week.  Only needs minor prep before renting or possibly listing for sale.  This one is better than the usual deals in my area, but it seemed to slip under the radar of other investors.  11k + closing costs for me to snag this one.

You should definitely mention to several local real estate agents and property managers that you are looking for multi-family properties.  I've learned that some owners do not like to publicly advertise their properties for sale because they do not want their tenants or future tenants to be aware of it, for whatever reason.  I came across a local multi-family nearby that I was interested in, but it wasn't listed for sale anywhere publicly.  I just so happened to speak to the agent that managed the property and found out that the owner was looking to sell, and he also had several other properties he was looking to unload as well.

Mike B. is exactly right on this one. Even if all the units are 100% occupied it doesn't mean a whole lot when it comes to rental income.  I just purchased a small 8-unit complex a couple months ago, and I was in a similar situation with the seller. It was fully occupied, but just over a month went by and I already had to evict one tenant for non-payment and another one that should have never been allowed to rent there to begin with. In order to fill the only empty unit, the seller just accepted the first person to come along without do any background checks, etc. If your going to be investing in something that substantial make sure you know as much as possible about it first. Don't worry about irritating the seller with questions about the income, expenses, property condition or tenants. They should be happy to provide all that information to you if they truly think the property is worth the asking price.

I've been searching for an easy, low-cost way to collect rent automatically every month for some time. After reading these posts and looking around online I decided to go with Dwolla to handle it. I've had a few tenants request automatic draft and this seems to be the most cost effective option out there that I've seen. I have not tried it yet so I can't comment on how well it works, but for the money it looks like a good deal. 

@Brandon Turner - It looks like they offer Dwolla API applications & buttons which may work for you and your site. I believe the payment services would be handled on their site, but then re-route the payer back to your site afterwards. Similar to shopping websites that forward to PayPal during checkout, and then back to the original site.

@Albert Bui 

Unfortunately for me, you have confirmed what the other banks have told me.  I was hoping there may be some other lenders out there that worked differently.  The acquisition costs for this property were only around 23k, but I have around 50k total in the deal after rehab.  It should appraise between 85-90k, so I was looking to get a cash-out refi on the appraisal value, but it seems I will have to wait it out after all.  Thanks for the help Albert.

@Brie Schmidt  I have yet to find any lenders that will do a cash-out on appraised value before 12 months of seasoning.  Maybe I'm looking in the wrong places, but I'll keep searching.  If I could find a lender that would lend after 6 months I could really get going.  A lot of the deals I see are cash only, but having to tie up that much cash for an entire year isn't a great option.  If anyone knows of something that I'm missing please let me know.  Thanks!

@Brie Schmidt - Did you use a national bank to do your cash-out refi, or a smaller local bank? I am looking to do a cash-out refi as soon as possible on a rehabbed SFH that I've had for 5 months now, but I need to find a bank that will use the new appraised value instead of the purchase price. Thanks for any suggestions you have.

Originally posted by @Curt Davis:

If this home you are wanting to cash out refi on is the 4th home or less you can do 75% refi.

I work with a bank that has no seasoning but not sure if they lend in your state of NJ.  IF the home is in another state let me know and I can try and find out for you.

@Curt Davis - I have an investment property in SC and I am looking to do a  cash out refi for 75% of appraisal price also, without having to wait 12 months for seasoning.  Do you know if the bank you work with will lend in SC or one that will?  Thanks!

Thanks everybody for the warm welcome!  It's great to find such an awesome site with everything it has to offer, and without forcing a paid membership on anyone. 

@Brandon Turner  and @Lauren Apicella  I've been listening to the podcasts almost non-stop all day and I can't get enough.  They are just full of first hand knowledge and experience that I haven't found anywhere else.  Real estate investing is quickly becoming a passion of mine and I know BP will help keep it going strong.

After I sell my first flip I will be sure to post the details along with everything I've learned from it, as well as details on my upcoming venture into multi-family properties.

Thanks again!

@Brandon Turner