All Forum Posts by: Jonathan Li

@Tesho Akindele great job and deal - best wishes to you and your dad’s success!

Do you mind sharing what bank you are using in a private message with me?

@Curtis Linville 

It's been great pleasure connecting with you - keep the momentum up and keep taking action. Everything is an 'e-myth' until you get your feet wet, learn, and grow. Real problems lead to growth, improvement, and success. 

The lender or banker is your next team member after the realtor, I often ask the realtor to recommend a good banker that they trust and work well with. That way, there is already a pre-established relationship between the realtor and banker who will help you get to the finish-line more efficiently as you get through your first deal. If you are care enough, you'll do what it takes to take action, even if that means making calls to bankers during your lunch break! 

Best, 

Jon Li 

Investment Info:

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

Turn-key Tenanted Duplex built in 2005 with recent renovations in 2013.

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

Low risk, limited work that needed to get done, cash flowed from day 1.

How did you finance this deal?

Convention loan, 25% down.

How did you add value to the deal?

Updated flooring on one of the units.

Lessons learned? Challenges?

This was my first property purchased, the challenge was to get started and to not wait too long to look for the perfect deal.

 Thanks David. Regarding (1), what rates and terms do you recommend with such a portfolio loan for me to reach my goals? Regarding (2), great advice, I may give this more thought. The magic of economies of scale!

 Thank you kindly, Richard - that is exactly what I will be doing in the near future. My last purchase of a duplex, the listing was stagnant at $135k, slowly decreased to $125k. I did my due diligence, and after negotiations back and forth, settled at $101k. Very happy my negotiation skills and improvement of firmness (because of the I don't need it that badly type of mentality). 

@Account Closed I had a lot of cash or liquid equities on hand - the rapid fire purchases were a reflection of a solid team (realtor, lender, inspector, etc.) and also a reflection of my eagerness to achieve my goals. 

 Apologies, I meant $35-40K for the down payment (including closing costs); purchase price is $130-150K. Conventional 25% down mortgages on all purchases, that is why I am taking second thoughts on continuing to pour so much cash into such deals. Looking for alternatives and next steps to scale! Researching the possibility of 1031 exchanges and scaling larger may be worthwhile... 

 Hi Michaela, appreciation would probably be at a rate of 1.5-2%/annum.. I don't value appreciation to heart, but rather the sustainability/demand of the rental market and what I can get in rents versus my overall outgoing costs. $180/mo/unit in cash flow is conservative, I am seeing more like $200-$225/mo/unit after setting aside money for repairs/capex/vacancy/pm (paying myself for pm). A typical duplex with these returns cost about $35-40K after closing costs.