All Forum Posts by: Joshuam R.

15yr Fixed equity loan base rate could be as low as 10.25% at 100% loan to value, with a base APR as low as 10.25%. With a promotion of
Navy Federal will pay for closing cost and appraisal if needed. So all you might end up paying would be small fees not part of closing, title, settlement, etc.

example $68,457 would be $745.15 a month.

Who are actively pursuing such equity loan products? and or your thoughts on this.

1 Vote

Quote from @Fakaradin Floyd:

Quote from @John Underwood:

Quote from @Cody L.:

Quote from @John Underwood:

How long is your lease with the owner?

What happens at the end of the lease if the owner realizes that they can just take the property back and do what you are doing?

I have tons of my units leased by people who do airbnb. We don't take them back. Why? We don't want to do what they do. We want our rent check every month. Airbnb is not our business. My guess is it's not the business of this little old lady he's renting from. She's not trying to be an airbnb operator. She just wants a monthly rent check.

I agree. There are no guarantees other than this 12 month lease. People even break leases all the time.

The lady could decide to manage her self, she could get hit by a bus and her Heirs realize the STR person is making too much money off their property. Some one could offer her a better deal with profit sharing. These are just a few things that could happen.

The Arbitrage person is not the owner of the property therefore has limited control over possible outcomes that may or may not happen.

These are just the facts.

@John Underwood

I hear you John, I am not disagreeing with you honestly I just wanted to showcase my accomplishments thus far, I am not thinking in the case of what can happen and thinking of the cases of what I can keep in control of.

You bringing up an owner can break the lease, someone could die and the family takes over, she can get a better deal profit sharing. These are what-ifs and usually lead to anxiety for a lot of people. These risks can happen to anybody no matter the type of investment they make like your investment house can blow up and insurance doesn't accept your claim, you could get hit by a bus, and boom no money, and so on.

It's not really a fact of the world but a risk a real risk correct but its a what if, and if I laid in bed after successfully setting up an Airbnb arbitrage and so far have success and just think about what if this or what if that, it'll only slow me down.

Those what-ifs only matter when they happen, anxious thoughts really aren't something I put an extreme amount of thought towards since the majority of the time they slow me down and result in an analysis paralysis type of scenario. You can only do so much to prevent worst-case scenarios

EXACTLY!!!, Deal with the what-ifs, only when they happen. Before they happen prep a little cushion here and there for different areas you have your hands on.

1 Vote

Quote from @Amy Wan:

Hi, syndication attorney here. First, it depends on what you're doing. Most folks do a Regulation D offering (rule 506b or 506c). For that, its 7500 to 25K and up. If you're doing something else, it depends. A Reg CF (which I dont recommend folks in real estate use) can be a couple thousand. A Reg A+ offering can start at 35-50K, though I once saw an attorney charge 500K for it. So, it depends.

Thank you @Amy Wan, what would be your fee or average fee cost to establish a syndication only to be offered to non accredited friends and family. No advertising. Regulation #??

0 Votes

Has to be a combo hit , you read one book or 100 books or 1,000 books it will only count as 20%

The other 80% has to be hands on action = success + growth.

1 Vote

In regards to the mortgage you are correct John, It cannot be a loan. A letter must be written to show it as a gift.

In regards to who you put on title it is separate. But yes, I did missed the equal shares, vs specific shares via LLC.

It is NFCU, zero down-payment product, they do not care about seasoned funds in accounts. But underwriters would ask about big deposits , to make sure is non-criminal activities they required a letter stating is a gift and not a loan from such party.

Regardless of the loan product, and using your explanation as an example would this be the outlook: Title to include Person 1 (mortgage holder) + LLC (93% Person 1 + 7% Person 2)

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Tampa, Florida

Steps:

1-Live in and hold mortgage on primary SFH

2-Add additional persons to title only

Scenario, additional person on title gives closing cost $$ of 3.5%, add the person to title as 7% ownership and rides it out until a future sell of the home occurs or refi and buy them out.

Any one done this?

Bank confirmed that step 1 and 2 are allowed.

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Tampa, Florida

"Heads up" Notification

Look at what I just learned, now we know why the posts gets bombarded with the simple replies nothing to do where the original post intended to be. Inspired by this platform itself, for us to continue to interact. Which is fine, we are all optional on here. But dear friends, please be part of the original thought process of the post and give a fair response. Not an empty few words just because maybe this constant inbox notification put so much pressure on you. Love you all, best wishes.

0 Votes

Quote from @Amir B.:

Hello,

We bought this house and closed on April 28th. We have been searching for a qualified tenant but have had no luck.

I was wondering how long other investors have had vacancies in months.

Is it normal to have a vacancy for two, three, or four months?

Thanks,

Amir

https://www.realtor.com/reales...

That is a decent cute neighborhood. You have to re-do your marketing pictures. Get a pro and also the ones that place digital furniture/decor to bring life to them. The google pic from 2021 looks way cuter than what you used. Add some plants, temporary ones, that if they die off is okay, but for now during the marketing phase add them. Put up a sign on the front yard, and one on the two closest busy intersections.

Another thing is 5bed/1bath will be a tough one, but doable.

I saw some comparisons close to your property, I believe keeping your price as-is is fair, but do not lower it until you do try these remedies.

Here is a good example of very good story telling pics, got lucky it was still furnished, it helps tell the story of what can work inside. example post

Best wishes.

0 Votes

Cleveland, Ohio

Quote from @Ran Iarovich:

Quote from @Adrian Chu:

Invest in low cost ways that will enable you to make more money.

1. Real Estate License

2. Mortgage License

3. Notary License

4. Contractor License

And go find deals for other investors while making money from having the 4 licenses above.

Would you get all of these or pick and choose?

Just sharing my personal my status following this list by @Adrian Chu

For adding to my utility belt, I am currently doing #1, studying for the state exam. And this will also season up trust or optional service to be offered with our current wholesale company. The goal is to give the client to have option A be sell of market and its pros and cons, and option B sell on MLS with its pros and cons.

Then going for #4 to continue to vertically integrate my career W2 skill/assets into my personal LLC , networking , etc.

#2 I would partner with someone.

#3 not necessary if you are doing the other ones. For this one I would only focus on mastering #3 as much as possible and make that gig grow to $100k or more a year. If that's not the goal with #3, let someone else do it.

1 Vote

Seattle, Washington

Quote from @Linda S.:

@Joshuam R.,

1) I enjoy knowing that I've turned a house that was boarded up and a complete eye sore, and renovated it and brought it back to life. I love picking trendy colors for the exterior, it brings life and energy to the street! I love getting stuff on the market place (ex: cabinets, fridges,etc) and giving it, it's 2nd life in a rental, and less pollution! With low-income rentals, people are used to the bare minimum, so when you put in a nice light fixture, they are very impressed!

2) I enjoy the returns/cashflow, while everyone else ran away in 2016-2020, we ran to them and fixed them up, a lot of them!! Now everyone else is coming back since the city got their stuff together, and it's been a fun ride to see the appreciation!

3) I enjoy offering high-quality people an affordable place to live that's well-maintained. I have some of the nicest, most amazing tenants. Unpopular opinion, but about 25% of my tenants in C/D actually pay early. 50% pay within the grace period and 25% pay by mid-month. I've worked with my tenants, if they lose their job, we use their deposit and do a payment plan. I genuinely feel like I'm helping them get back on their feet.

I can give you a MUCH, much larger list of things I do NOT enjoy... Don't cherry-pick the good stuff. There is a reason it's high risk/high reward-- it's a shark tank, and you need leather skin to handle it, because sometimes it's really, really dark. Some imagines you won't unsee, some things you will always remember the smell, it's hard --mentally, emotionally, and financially. I swear I have PTSD from some of the stuff. You won't likely say that about a B property.

Thank you very much for sharing. Best wishes.

1 Vote

All Forum Posts by: Joshuam R.

Joshuam R. has started 40 posts and replied 252 times.

Post: April 9th 2024 Case study - Yes or No

Post: Advice on my STR pitch and overall Rental Arbitrage advice (Alexandria VA)

Post: Syndication Attorney costs

Post: Controversial Take: Reading Books = Overrated

Post: Hold primary mortgage, But add a friend on title.

Post: Hold primary mortgage, But add a friend on title.

Post: For the love of realness... Where is the dislike button for forum posts?

Post: We closed on this house on April 28th and it is still vacant.

Post: Fun Feasibility: How would you go upon making 1 million in 5 years

Post: Investors in High Crime Distressed Areas - Class D