All Forum Posts by: Johnny Quilenderino

Nick,

The whole project was rehabed in 2014 and updated with handicap access on the first floor, new roofs, and better parking arrangement. In the expenses there is 10k a month spent on maintenance and repair. 4k in salary, 1.8k in legal and accounting, 4.6k in utilities. 

Understood, I am under-capitalized, for now. There is no rehab needed, I have driven by this property already. If you are talking maintenance that is already explained. 

As for net worth, I am over the 800k I would be asking a bank for. I am not over the 4.3 million ... yet!

Just doing rough numbers:

Net income 41k

Owner finance at 6% and I talk him down to 4.0 for 3.2 million dollar financing 

8.8k in Principle

16k in interest

Blanket loan of 700k @ 6 percent

1.9 Principle

3.5 Interest

30.2k of debt coming out a month

41/30.2k = 1.35 DSCR

I do have 100k in assets to cover the initial 100k. I guess it is time to pitch this to a lender that will fund this at 6 percent, with me only putting in 10 percent of the downpayment.

 Once I get enough for a downpayment to get the owner financing out of the way, refinance again, crossing my fingers the rates are still good!!!!

BP,

I just went back through the finances for the property. 64k (current May 2017) is the GOI, and 5% is the cap rate on 2016 numbers for the property. @Jeff Greenberg thank you for checking my math. I still have a (JOB), and I am attempting to work on my exit strategy from (just over broke). 

Right now the property expenses are: 23.2k

Net operating income as of May 2017 = 41k

So that would be 41k to pay down two loans at least, hopefully, not more than that!

Good afternoon BP

I have been offered a 4.3 million dollar deal. The seller knows I do not have a down payment. He offered to lower the price to see if I would take a 20 percent down payment and owner financing. I looked at the financials and NOI is 54k a month and cap rate is 5 percent on a 4.3 million dollar investment.

The Rub:

Currently I do not have the down payment, next year or the following, absolutely.

Possible fixes:

1) See if a commercial lender will finance a down payment, while I pay the owner for the next ten years or until a can save enough for a proper downpayment, all the while paying the down payment too. 

2) Find a rich uncle, who is not afraid of the numbers.

3) Find partners.

Legality: Is it legal to ask for a lender to fund the downpayment?

Thank you.

Johnny

Good evening:

Taxes: 238

Insurance (USAA) = 138

You can use Geico it is cheaper.

Nice comment, like I said, I am transferring. If I new I was leaving the area I would have done those. Oh if you did your due diligence you can see it is under local rent prices. Thank you for showing your ignorance. 

Hello BP,

Here is an investment property for you!!!! All you have to do is press buy and collect checks!! 4 Bedroom 2.5 bath. The kitchen has been updated with tile, granite, and downstairs floor is now laminate. This house has been steady income for 10 years. With only once having a negative year that that was when I moved in to fix it up after college students lived in it.

Tenant is paying 2000 a month. This tenant takes immaculate care of the property, he paints, gardens, and cuts his own grass. Do the math!!! You will get at least $250 dollars a month for this door. Also, this area is appreciating in Virginia Beach.

**** Bonus tenant wants to buy the house next year **** 

Only reason I am selling is to free up my VA loan again! I am moving in the next couple of months and would like to use my VA loan option again.

House cannot be delivered vacant. Tenant has a lease until Jun of 2018 and would like to either stay or buy!!!

All offers will be considered. This is not on MLS.

Cheers,

Johnny

Will, thank you for your quick response. I have an LLC built but I am wondering if I need to restructure it if built it wrong ie just my wife and I are on it.

What I would like to do is build several small partnerships from the LLC (if possible).

Good evening BP,

Tomorrow, I start my journey into flipping and creating more income for the family!!! I will be speaking with an attorney to structure a partnership that will involve multiple investors (10) on individual flips. I would like to structure the partnership such that the entity does not get taxed for the capital that it gains, but passes that down to each individual partner (if possible). I am going to do a 50/50 split on all capital gains on each adventure.

My goal is to bring in novice investors and teach them the ins and outs of flipping, multifamily residence management, and ultimately getting them passive income after the third flip.

We would flip three and buy one, rinsing and repeating for several years until we have enough passive income and equity to use a blanket loan to buy a 100 unit something in the area. 

My investors would only do covering costs, I would cover downpayments on each property.  If the flip goes "well," I would get my downpayment back and the investors would get their covering cost back, and then we would split the capital gains 50/50. Currently only two investors are ready so I only have to find two flips once I am done  with the attorney, but I would love to get up to the 10 flips a year point and bring in more investors.

I already have about 3k in passive income coming in but I would like to expand into flipping so I can buy more multi-family residences, then expanding my passive income even further.

What questions should I be asking my attorney? 

How do I safeguard my investors? 

What am I missing? 

I do have a solid market that I can invest in, and that I have been looking at for several months. I know it is being gentrified and housing market in that little market is pretty stable. 

What other tools do I need to be using other than Zillow, BP, city-feet, flip-analyzer, etc. 

Thank you for all the support!!!!

Johnny

Good afternoon BP,

I am about to start flipping and looking at lenders that lend specifically to flippers. Does anyone have experience with the following lenders "centerstreetlending" or "the rehab financial group?" 

I still am working my first flip the "old" fashion way through the normal type of lender, but was wondering the success rate of getting loans from those teams. Any suggestions or feedback would be greatly appreciated.

Thank you and have a great week.

Very respectfully,

Johnny