All Forum Posts by: Kevin Hunter

@Matthew Pham

+rent                                                          1800

-principal, interest, tax, insurance              -1600    (I assume tax and insurance are escrowed)(post refinance)

-repairs(leaky toilet, garbage disposal, etc)  -180    (10% of rent)

Capital expenses                                          -180    (10% of rent)    

(you wont have to replace window, roof, HVACs now, but you will eventually)

Vacancy (it will not be rented 100%)            -150    (for a single family home I budget one month a year vacancy or 1/12 of rent)

Lawn Care, Property Management, etc...      XX      (even if you don't hire a PM now, you should plan to hire one eventually)

Cash flow                                                    -$310 per month (if you don't refinance it will be $-560)

@Marcus Gold, I think this is probably a great place to cut and paste your post from yesterday.

@Bri Webster, reach out to wholesalers in OC on this site and offer to work for them pro-bono for a month or two. It won't cost you a dime.....

@Shain Cannon, in slower market periods with more sluggish appreciation, I would agree with you that properties with tenants and cash flow likely have underlying issues. However, right now with the market as insanely hot as it is in most areas, especially in multi-family, a lot of investors are taking these large equity positions and selling at large profits to scale into larger properties. I know I am. 

As for corporations, it is all about the books. Underperforming assets are sold. That is not the same as non-performing. Assets that are performing at a lower rate than other assets are removed from the portfolio. Again, may not mean a bad deal depending on your situation.

@Frank A Castro, welcome to BP. Tons to learn and great folks to network with. I invest in northern Virginia, but there are lots of people on here from VA beach. Good luck moving forward!!

@Maria D'Aura, fair point and what you highlight is that it all depends on your goals and needs.  If you need cash flow right now, then of course you should sell.  If your goal is to build long-term wealth, a property in a high demand, high entry price area with 90% equity can be held and leveraged to build that wealth.

@Jack Hou, I am with @Amit M., keep it long term.  Look at that chart.  Which are you more likely to say to yourself in twenty years: Man I wish I didn't sell that property or Man I wish I would have sold that property.....

@Kristina Dobyns, welcome to BP.  You will learn a ton on this site.  Get involved in the forums and start listening to the podcasts.  They are priceless.  Good luck in your journey!!

@Maurice Smith, thank you for taking the time to post that response.  I am not a wholesaler, but a buyer, and the amount of wholesalers that put me on their list and I delete after two months is frustrating.  You did a great job of simplifying a topic that most wholesalers don't care to understand.  Well done!

@Peter Eberhardt, that is exactly how you do it.  You borrow private money as you said, then you fix it up and go to a bank for a cash-out refinance.  The bank gives you a mortgage on your property and a check.  You then pay your investor back.  You now have your property with a mortgage on it, and your investor is whole.

@Ryan Copeland, what type of a business is it that owns these buildings?  Is it a large, reputable company?  This answer will give you an idea of the shape of the property.  However, you must include an inspection contingency.  That will get you in the properties to take a look.  Figure out what purchase price you need to get to to cash flow and work backward.  Cash flow purchase price-closing costs-holding costs-worst case rehab cost = offer price.

Bottom line, without any idea of the condition or a rehab budget, no one here is going to be able to offer you a purchase price in good conscious.  

The no-entry policy also seems really strange to me.  I would at least proceed very cautiously with that remaining an issue.

Another thing to consider.  When you call the lady back to discuss the deal, see if you can find out how much the other offer was.  Try something like "I really don't want to take up your time and effort on this if we aren't close.  Especially with the challenging year this has been for everyone." That will at least tell you what you need to be above to keep the conversation going.

Good luck and let us know how it goes.....