All Forum Posts by: Jim Pellerin

If 3 duplexes are for sale on one property (6 units total), is it considered commercial because more than 5 units or residential because they are duplexes? Just wondering how that might affect a downpayment amount.

TIA

Is a single land title or multiple?

0 Votes

Quote from @Ryan White:

I'm a fairly new investor and wanted to get some feedback from the experts. I just moved out of my house because I bought a new one for my growing family and rented out the old house…so now I officially have my first rental. I'm still very new to being a landlord but At some point in the near future I want to purchase another rental to increase my portfolio. In the current state of the market, houses are more expensive and interest rates have not come down to offset that much. Even with the high rental rates that I can get in my area, most properties are priced too high and mortgages are too expensive to make most houses a good deal. My goal is cash flow but PITI almost washes out all cash flow. How are you approaching the current market when it comes to purchasing rental properties? Are there any strategies you'd be willing to share to help me out as I approach purchasing another rental property in this market?

thanks

Ryan

It's always been hard to cash flow single family homes

0 Votes

You cant just move a property into an LLC. The LLC would have to purchase it from you. This would also subject you to capital gains tax on the sale.

0 Votes

Toledo, Ohio

Quote from @Anthony Huston:

My goal is to build long-term wealth for my family, and eventually get out of my corporate job. To be honest, I'm a bit tired of spending my days making money for someone else. If it were up to me I would ditch this job tomorrow, but realistically it will likely take me a couple of years as I learn how to let our money work for us rather than work for money.

Here is the situation...we have around $900K in equity built up in our current home. I have been spending the last few years rebuilding my credit and paying down debt. About 10 years ago I lost my job, had a heart attack, and we almost lost everything. Medical bills kept growing, and we essentially survived off of my credit cards. I decided to take the hit to my credit to keep my wife's credit in good standing. I am not on the home loan for that purpose as we wanted to keep our interest rate down. I believe she is around 760. I've fought back to 655.

With that said, I want to start using the equity we have to invest in properties that will create passive income streams through long and short-term rentals as well as potentially purchasing and flipping properties.

How challenging would it be to start utilizing the equity we have in order to start investing?

Thank you in advance!

@Anthony Huston You need to speak with a lenders/mortgage brokers to see how much of that equity you can actually pull out? This depends on your income and credit scores, etc.

2 Votes

Quote from @Colby Burt:

Hi,

I have an opportunity to acquire a 3/2 under the following seller financed terms: Purchase Price: $420,000 5 Year Note & Mortgage Principal-Only Payments of $2,000/month 4% interest, paid at the end of the term along with remaining principal balance I have ran conservative and aggressive numbers for a long-term rental: any way you slice it, it negatively cash flows about $400/month. I am unable to run it as an STR due to zoning laws. I ran numbers as a mid-term rental (such as for travel nurses using a corp lease platform like Furnished Finder) and it also negatively cash flows at about $200/month. My question is, should I not do this deal bc it negatively cash flows? Or does the fact that I put no money down, and a tenant would pay down most of the principal each month make this a good deal? (In short, is paying $400/month for an asset with principal being paid down for 5 years a good investment?)

I dont ever recommend in anything that has a negative cashflow. And there wont be much principal paid over 5 years after you take into account the interest.

2 Votes

Orlando, Florida

Quote from @Erik Littlefield:

Anybody have any creative ways to get the money for the earnest deposit? I have a deal that is under contract and don’t have the $5k for the earnest money.

Who said it had to be $5k? We do deals all the time for $100 EMD.

7 Votes

Quote from @Andrew Perkins:

My current career is challenging and never boring. The pay is good, the company is great, and there are plenty of opportunities for growth. However, there’s just something that I can never shake off.

Every chance I get, I find myself talking about real estate, mortgage rates, and loan strategies. I find every excuse to analyze properties and build spreadsheets for rehabs and rentals. Every real estate transaction I’ve been involved in (we’ve bought and rehabbed a couple of long term rentals) has been so enjoyable and I always think that if I could spend every day immersed in all things real estate it would be my dream job.

That being said, I’ve spent almost a decade working hard to build my career as a leader in the construction industry. I keep waving my thoughts off and telling myself to stay the course. It almost feels irresponsible to explore something like becoming a real estate agent at the expense of something that I’ve dedicated so much time to.

I guess I’m wondering if my passion for all things real estate is enough reason to truly take steps towards a full time career in real estate? What paths might I look into?

Any advice would be helpful!

I'm confused. Isn't the construction industry part of the real estate industry?

0 Votes

Quote from @Joseph Milano:

I am currently researching different marketing strategies in generating leads for wholesaling, and utilizing some of my current relationships with realtors seems like a great place to start since it doesn't require any upfront out of pocket cost, and I have worked with them on deals in the past.

That being said, how should you go about paying them any finder fees for off market deals? Should it be apart of the assignment contract and paid out at closing? A separate contract all together?

Also, what is anyones experience finding deals this way, do you lean heavily on this as a strategy or something that only produces a deal or so every couple months?

@Joseph Milano I know some wholesalers who only do deals through the MLS. They deal with listing agents and offer to let them represent them as well so the agent can double-end the deal. If an agent brings you a deal that's already listed, they will get paid by the listing seller.

If your agent brings you an off-market deal, just treat it the same way you would with any other wholesaler. You enter into a JV agreement where the payout happens at closing.

2 Votes

Philadelphia, Pennsylvania

@Bret Halsey I struggled with this a lot. The challenge is that you have a list of contacts and not leads at the start. A contact is just a name and contact info. A lead is anyone who replies with some sort of interest.

So do you load up your CRM with lots of contacts or not? Especially, if you are talking about thousands of contacts. Some of the CRMs have limitations. I reviewed over 30 CRMs and the best one that works for me is freshworks/freshsales. You can create a list of buyers and sellers. You can segregate by location. You can connect a seller with a buyer using a "deal". It has integrations with email, sms, even FB messenger.

The key thing to remember is that a tool is only as good as how you use it. The biggest advantage of a CRM is the follow-ups.

0 Votes

Quote from @Molly Francis:

Anyone know of any companies similar to Sundae? Sundae is an online marketplace that is a middleman between sellers and investors. The seller's info gets sent out to investors who will submit offers on their property and sellers compare offers and select which one they'd like to accept. I've been trying to do some research online, but most companies I've found charge per lead, but Sundae charges the seller a marketing fee instead of the buyer.

@Molly Francis Isn't that what you do as a realtor? You act as a middleman/woman between a seller and a buyer? Isn't the marketplace MLS? ANd you can present multiple offers to your sellers.

2 Votes

Houston, Texas

All Forum Posts by: Jim Pellerin

Jim Pellerin has started 8 posts and replied 870 times.

Post: Is it it considered Residential or Commercial??

Post: Current state of market

Post: Should I put my rental in an LLC before or after opening a HELOC?

Post: Tons of equity...where should I start?

Post: Seller Financing but Negative Cash Flow

Post: Earnest money deposit

Post: Seeking Career Advice?

Post: Payout for Realtor Finder Fee

Post: Lists and Lead Management

Post: Companies similar to Sundae?