All Forum Posts by: Joe Ort

I closed with loan depot although I ended up selling shortly after. I liked Melvin's idea of delayed finance but without a good PM, I was better off finding a new place with the forced appreciation as the down payment.

Hi - I'm looking for a lawyer in NJ to help with a loan I have on a property in Tom's River.  The borrower is in default and I need someone to help with the legal aspects of getting my money back. We have a promissory note and deed of trust recorded in the county records so it's a pretty simple case in my eyes.

Here's the situation:

Moved out of our personal home. We're renting it out and the renter could be a great candidate for a lease option with seller financing since she's coming out of a bankruptcy not too long ago.

• Approx value is 525-550K.  
• Loan amount outstanding: 370K
• P&I: $1856/mo
• Escrow: $1100/mo (taxes are $8800/yr)
• Renting: $3900/mo

I have a HELOC so I can access 70K of the equity (already deployed) but that's a lot of equity sitting there.

Would you try to sell it when the lease is up to any buyer and move those funds elsewhere? Or wrap a mortgage and collect the spread?

I'm thinking 25K down 5.5% for 30 years, 5 year balloon (2981/mo P&I).

That would give me 25k to invest and then clear the $1000-ish/mo spread.

Anything I'm not thinking about? Ways to improve the deal?

What would you do?

Good answer, @Chris Clothier.

@Kyle Kaldor check out this quick video: https://www.biggerpockets.com/blog/2013/06/14/50-percent-rule/

"Over time, 50% of your real estate investment’s income will be spent on expenses, not including the mortgage."

I ended up buying through a high quality TK provider last Aug and have had almost no maintenance and one side of the duplex is a 2 yr lease. I'm coming up on the first renewal so we'll see how that goes but so far, the first buy has been a nice winner.  

@Cynthia Courtney - I plugged into @Bogdan Constantin Stefanide's group.  Get him your email to be added to the list.

Thanks @Marco Vartanian - trying to throw gas on the fire and accelerate quickly!  Once I have the places, I like your approach of simple, paid off properties.  We theoretically have all of the cash we need to buy the places we need to retire in 9 years.  I want to make that 4-5!

@Wei Jie Yang I bought 2 places through Bridge and am a big fan.  The 10 year replacement came up during inspection on my first place and they replaced the furnace after they did the rest of the rehab.  Having the independent inspector makes this legit and not something to be scared of.  Agree with above on pricing/pro-formas.  I don't use theirs, I put in my own numbers here on the BP calcs.

Voepel has been great so far as well along with sharing expected rental rates on other purchases.  They have 4 doors for me and are marketing for 1 right now.  You don't HAVE to use them for your PM so feel free to shop around.

As for Nathan - what you see is what you get.  Awesome guy and doing great things with Bridge.  Rockstar.  

Can't find cash flow numbers around us!  A triplex around the corner from me in Norwalk sold for 480 and will need lots of work and will rent for probably around 3-3.5k all in.  Plus our high taxes!  No thanks.

...you were in my shoes. Here's an overview of the situation but ask more clarifying questions if that helps:

• Decent W2 income and clearing ~$3.5k after expenses every month
• Decent funds available (currently all deployed in private lending) - $175k
• $30K in 1031 funds; clock just started
• Long distance investor - based outside of NYC
• 5 doors (duplex and 2 SFR in KC, 1 SFR in TX) - all purchased in the last year so not a lot of equity available to tap into
• Mostly turnkey/MLS/retail buyer so far
• Not a lot of time (baby #2 due in a month plus full time job plus side hustle consulting)

I have 3 paths in mind but feel free to offer others:

1. Start finding BRRRR opportunities and recycle the cash but slower acquisition
2. Continue buying rent-ready properties
3. Continue saving up and go after ~$1M MF

Would love to hear the groups ideas/considerations.

Thanks in advance.

@Larkin Briley make sure they know it's an investment property. I had that experience too and then when we went to close they increased 1% for non owner occupied. 

If you get that rate for investment properties send me your guys info!

@Larkin Briley

If it's not owner occupied, you aren't getting 4% on the mortgage. Talk to a lender to see what you would be at based on your credit. I'm closing on 2 properties next week and we're at 5.25% with 25% down.