All Forum Posts by: John O'Leary

Find your cash buyers via propstream, batch leads etc. Skip trace the LLC and start a marketing campaign. The other thing to do is find a lender to partner with. Most "cash buyers" actually use some sort of financing.

I recommend working for someone while you sharpen your skills. See what they do right, and find areas you can improve upon then make the jump. It's sales and marketing. Best of luck! 

Understood. A key consideration here is the refinance process. When converting common living areas into additional bedrooms, many DSCR lenders might view the property as non-conforming, which could pose challenges. A common strategy used by investors, such as those operating through PadSplit, involves purchasing the property, completing basic rehab, refinancing, and then using cash for the interior build-out.

Another potential red flag, even without converting common areas, is the addition of individual locks on bedroom doors. Lenders and appraisers may see this as a sign of a room-by-room rental setup. To avoid problems, it’s best to add these locks after the appraisal on a turnkey purchase or after the refinance is complete.

Also, most DSCR lenders will assess the property's market rent as a single unit rather than the combined rents of individual rooms. If you're working with a community bank or a traditional lender, these issues may not be as relevant.

Borrowers in certain states or with high credit scores may qualify for 80% cash-out , but it's important to weigh the pros and cons. Higher LTV ratios come with higher interest rates, so you'll want to think about how this could affect your overall return. Think of the rate using an X and Y axis with credit and LTV. Many lenders include a prepayment penalty that lasts 3-5 years, which could limit your ability to refinance again if rates drop in the future. While cashing out more equity might seem appealing, it will result in a lower cash-on-cash return due to the higher rate and LTV. If interest rates fall later, refinancing again might require you to bring extra funds to the table, which could impact your overall investment strategy. Some investors rely on the BRRRR method to keep their capital working, but in a high-rate market, a short-term strategy like flipping a property could also provide a quick cash injection to maintain growth.

Are you just renting by the room or are you using Pad Split?

If you're looking to get started in real estate investing, focus on building a sustainable "assembly line" that allows you to grow year after year. Many investors aim to jump straight into turnkey properties or multifamily deals to scale quickly, but the truth is that most people don’t have enough liquid capital to maintain consistent growth this way. Instead, prioritize strategies that stretch your resources as far as possible while building experience and momentum. This will set a strong foundation for long-term success and scaleability. 

Hi Geetha,

The NCREIA meetups in Raleigh and Charlotte are a fantastic choice—they attract real estate operators at every level, so you're definitely in the right place to build connections! When networking on BP or in person, being clear about your goals will make a big difference.

Are you mainly interested in finding rental properties, connecting with other landlords, or exploring specific asset types? Think about your target strategies, like short-term or long-term rentals, and whether you're looking for financing options to expand your portfolio. Clear goals will help you make the most of these great networking opportunities.

Best of luck, and I look forward to hearing more about your progress!

Absolutely. The REIA is an interesting one because they network together and are in most major metros.

I would recommend investigating the root of the problem first. The water is getting in from somewhere, and if left unaddressed, it could lead to bigger issues down the road. Since this happened during the storm, you might also want to check your insurance coverage

Welcome to the BP community!  Take in all the information you can, but remember, the real key is to take action. Best of luck as you start your investing journey