All Forum Posts by: Jeremy England

Started in this business 15 years ago and took a hit in the crash of 08, now i'm 40 and just got back into it.  Aquired a rental and looking to do more soon.  

I'm also a leo, so i know what you guys mean.  

Nothing wrong with buying 4 plexes, but from what I gather, small mf is what every investor wants.

So they are going for a premium v sfh.  Least around here.  

A guy i know wanted 150k for a dump triplex that needed 30k of work, all to get 1800/mo in rents.  I'd be paying more per unit in that neighborhood than 3 sfh.  

I'm seeing that across the board around here.  

Don't look past the sfh, other investors are 

I thik it depends on how comprehensive it is.  

If I were building a new house, I would require my first draw after i poured the foundation, another at dry in, another at frame inspection, another after paint, then the final after punch list.  

How much are you doing

Why wouldn't you want them knowing?  Seems to me a contractor is more likely to offere you preferred pricing if he believes he will get repeat business.  

Ofcourse that probably isnt' true for your first project.  But going down the road,

Word of caution, be sure you are partnering for the right reasons.  Back in 05, I had a homebuilding business and partnered with a friend of mine.  Problem was he didn't bring anything to the table.  I supplied all the capital, knowledge, and did all the leg work as far as contracting, and was the only one who had any business sense.   

he was a friend and should have just stayed a friend.  Not a partner.  Turns out he wasn't a very good friend either because he took money from our business accounts

I had to get the partnership disolved and get him to sign off on that.  It was a nightmare.  

So before you enter into legal agreements with people, just make sure each person is actually contributing to the partnership, has the same risk, same goals.  

 Youre right about not relying on just a zillow search, but you can easily get sufficient comps by viewing teh properties that actually sold within a specified area and do comps that way.  Don't rely on zestimate, but get the recently sold from zillow, filter to last 90 days.  Then do some math.  

Add/subjtract for condition, bathrooms, bedrooms, size differences etc

You can usually get a pretty close estimate yourself on comps.  

Once you have what the ARV is then you can begin subtracting costs. Dont forget financing costs, closing costs, prepaids, etc etc

Roofing costs are VERY high right now.  Like twice as much as they were 10 years ago.  

Unless you ahve the time and money to direct market to sellers, I'd say get some relationships with some wholesalers.  

I bought one from a wholesaler recently, he wanted x, i wanted y, we settled on a price.  It was more in his favor than mine, and I spent a little more on the project than i anticipated because of roofing costs and a couple surprises.  But I am getting 1pct of rents and when I refi it will be a true brrrr deal.  I m currently awaiting seasoning req to be up in feb

What's troubling you with comps?  

I actually prefer rentals near the bases.  Far west side of town.  Steady flow of tenants, all with regular paychecks and clean backgrounds.  

Let me know if i can help you out.  I'm not a realtor, but an investor myself

Depends.

If you bought cash, you can get delayed financing but only up to the amount you paid in to purchaes the property plus closing or 75% LTV, WHICHEVER IS LESS No rehab costs will be included in the loan.

That's fannie mae guidelines

Or you can get a commercial loan, but proabably only up to 70% LTV, 20 year amoritization, 5 year baloon. So your cashflows are because its on a 20 year vs a 30 year

Or, another poster has recommended this: Get a loan from your LLC to buy the property, then you can refinance immediately conventionally. Just do a search for seasoning and you'll see the process. I'm not 100pc on it.

I would look for a private lender.  Givem 6-8pct.  Someone would probably be glad to lend 41k at that rate out of an SDIRA.  Plus its alot easier

Hey matt, I'm with the consensus.  The totality of the circumstance would dicate.  High score, high references, high bank balance, probably good to go.

I would probably require double deposit from those folks though.