All Forum Posts by: Josh Calcanis

BP,

I met a local commercial RE investor this morning for breakfast and was intrigued. I went in with an open mind and honestly to gain advice on how to move forward with my current portfolio. Although, he had positive things to say about the multi-family market in Orlando, he stated that he was more than happy to allow me to review some of his past deals to learn and possibly get involved on the retail side in Central Florida.

One thing that really grabbed my interest is that when you find a deal, you can approach specific companies, let's say CVS, and have lease signed before moving forward. I understand there are other risks in this niche market, but I feel that's is more of a positive.

Can some BP members familiar with the commerical/retail market share some of the more important/maybe obvious differences between multi-family (less than 4 units AND 4+) vs retail.

For example, 90% of the time in multi you are going to find tenants AFTER the property is financed where in retail you can find a deal and sign a lease prior to closing.

I'm a big fan of the articles. It's an easy way to access content while I'm out in the field working.

I would love to see more information (maybe how users have utilized) on how to use all of BPs features. I hear about the property calculator on the podcasts, but don't necessarily use it as much as I should.

@Ryan Hurd Congrats on the multi!

I'm curious why you went FHA compared to just throwing a similar down payment at it and paying PMI. From my experience, the PMI drops off at 20% LTV and can be written off if you make under a certain amount (I believe 100k). I know you can write off MIP as well, but it doesn't drop off until 70% or something around there. So essentially you're putting down less in both situations, but realistically paying more in the long run (if it's a buy and hold).

Any other posters on here familiar with that? @Albert Bui @Denny Robert @Paul Cleveland

I think grabbing something over in Seminole County could be a good thing especially if the plan is to hold onto it for a little. Where exactly in Seminole? I am asking because all the areas around where the 429 is going in are blowing up. So really you're getting your 25k in equity plus the speculation that the 429 and location will raise it a bit more. 

Outside of that you're coming out positive and if the numbers come out right you're sitting right at $29k unrealized gain.

Welcome to BP @JC VanLiere!!

I just moved back to Orlando, but began investing while I was out of state in Seattle. I've got a great property manager and realtor. Reach out if you have any questions or are browsing areas like College Park, Thorton Park, or DT Orlando.

Congrats again and thank you for your service!

Hey BP!

About a year and a half ago I finally entered the REI space. I had 'thought' about buying my first property when I first started making some money at 23 as a medical sales rep. That was three years ago! The true success is not that I got into REI, but what it has done to propel me towards my personal goals and dreams.

I went on a trip overseas on my own and ran into a fellow BP member and told me to check out the site. After just 6 months on BP, I bought my first two rental properties. One was a SFH and the other a tri-plex that was family owned and they wanted to get rid. The SFH was renting below market rent at 1600 and the 3 units were all under $900. Market rent was $1900-2100 and $1100 - $1300 respectively. 3 months ago, I reached the point where all but one unit in the triplex was at or above the market rent and was supplying me enough income to move back to my home state, be closer to family, and finally start my own company.

Although it definitely wasn't enough to live off of for the long term and I'll have to get another job here in Florida, it did provide income to take a break from the job that had become more of a chore. I was able to travel South America, see some of the United States, and began networking here in the Orlando area. It's allowed me to focus on my dream of starting my own company and time to focus on the properties I did have here in Orlando.

I'm definitely not going to be 'retiring' from my day job in the next 2 years, but this has got me on the right track and my only regret is that I wish I had started earlier. BP has been amazing and success really does have  a different meaning for everyone here!

P.S. - currently looking for the next multi-family to move into!

Excellent @Account Closed for my SFH the plan is within 10 years for sure. Thanks

Thanks @Geo Gondzur. So really a waterfall type of setup wouldn't make sense?

@Mark Rickert and @Geo Gondzur please jump in on this one. I just met with a local investor out here in Orlando, FL and he structured a few of his early deals (he now strictly works with commercial retail) with an investor with something called a 'waterfall' payment? It seemed like an intriguing way to go with an investor that you want to go in on buy and hold deals. 

The way it was explained to me was that the partner with the capital handles the initial DP and the other partner handles the work and cap ex. In the contract all earnings are split 70/30 (with the partner fronting the capital receiving the 70%) plus some interest. After the capital partner receives the agreed upon interest, the earnings split swaps or goes 50/50.

@Scott Walker I'm not an expert in this and haven't tried it yet, but it seems like a solid play if you don't want to use your cash up front. I also haven't partnered with anyone yet so I don't have the horror stories like these guys yet.

BP,

I'm looking into refinancing one or both of my properties. Obviously the idea behind it is to lower the payment and increase cash flow. The SFH is above market rent with tenants and the triplex is almost there. Both have an interest rate of 4.7 and were purchased with a 25% DP.

My plan is to continue in the multi-family space for the foreseeable future. Possibly paying off my SFH within the next 10 years.

My concern here is having to pay closing costs after just a year and a half. Does it make sense to refinance while rates are lower?