All Forum Posts by: Justin Lee

Hi,

I am seeking suggestions on landlord insurance policies. I am looking for a policy that will offer loss of rent coverage, cover the value of the home, cover some of the personal property, flood insurance, etc. The property is located in Louisiana

Thank you for all of the feedback everyone. One follow up question. Are these loans "private" or conventional? Private in the sense they are no doc, business loans, similar to private/hard money structures?

@David M. The loan program will probably lend 75-80% of the current value. That will be the new loan amount. Use comps to estimate.

What is the typical way that you fund your 5+ unit multi family deals? I was told that 4+ is considered commercial. Any private money lenders who do commercial no doc loans? I am In looking to purchase In Louisiana and Georgia

@Arionna Russell hey! I think that you are using all of the proper channels. The for sale by owners and expired listings are more likely to be open to seller financing. I would continue to call and email sellers daily. 1 out of 100 will be a bite. Strategically consider how you will structure the deal.

@Destiny Holmes hi, you can refinance out once you own the asset. You can borrow against the property to pay off the private investor and leverage the equity to acquire more property and ultimately do the BRRR strategy.

Thanks for sharing. Super excited to attend. Just requested access to the Facebook group :)

What tools are you currently using to source off market multi family deals? I am looking to purchase my first 4+ unit multi family soon , but haven’t seen any that are “off market”.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $140,000
Cash invested: $30,000

I purchased this home in June for $140k. The home was presently a 2/2 with an upstairs unit that needed a complete renovation. We completed the renovation and furnished the home for Airbnb and was live by 10/1. We vlogged the entire process from start to finish and can be found on our YouTube visit ThePropertyBruhz.com. Please like, subscribe, and comment. 

What made you interested in investing in this type of deal?

The area, income capabilities, and built-in equity.

How did you find this deal and how did you negotiate it?

This was an off-market deal that was referred to me by a former college classmate.

How did you finance this deal?

Private Money 20% Down , 100% Renovation

How did you add value to the deal?

Full Renovation of the second unit with bathroom addition and minor cosmetic renovation to the exterior and bottom unit

What was the outcome?

The home is now valued at $340k and is on Airbnb Renting $175 per night per unit. It has been booked every weekend since listing and has bought in well over $3600 in this first month.

Lessons learned? Challenges?

The biggest hurdle of this project was dealing with JANKY Contractors. I had a contractor to drag the job out from 45 days to 75 days and ran off after the drywall stage. Contractors have made the money they wanted to make by this stage and almost always take their time with taking the project to the finish line. Ultimately, staying true to the contract and phases could've saved me headaches and a loss of time and money. Also, insurance doesn't protect the customer only the contractor.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Private Money Lender - Baker & Collins Co.