All Forum Posts by: Ko Kashiwagi

Welcome Nik! Have connects in Bessemer Al - let me know if interested

Welcome to BP! Lived in Seattle for a little bit and I've met many investors over there. Happy to connect!

Hi Orchid,

Have you looked into multi-families in the area? Typically they tend to cash flow well so a 4 unit might hit those 1% rule.

I'd also highly recommend local real estate meetups, as you'll get local insights

Hi Deepak,

Out of the 22 units how many are currently rented? If it's mostly fully occupied you can get a full-doc commercial loan as long as it debt covers. Typically loans for these multi-family is 25% down and up. However at those numbers, you'd have to get a HML and increase value, then refinance into long term debts

Used to work with investors over there as a wholesaler. Happy to connect you to investors I know.

Are there any references or reviews you can check? If you're out of state and it's first time, this is really important

Best to involve attorneys/lawyers as well, but it depends on the type of financing you get.  Typically financing for investment properties are difficult if it's irrevocable. If it's revocable, then there should be options but it's important to let them know up front so there's no surprises. If it's formed right, typically all that's required is a certificate of trust and a few more documents to show the chain of ownership and grantee/grantor.

Will this be a rental?

Hi Anthony,

Definitely CPA/lawyer would be great place to start. As a lender/broker I can offer a perspective on the financing side as it would be important especially if you are going to use financing. Most lenders are not able to do irrevocable trusts and some can't do complicated structures like Series LLC, LPs, etc. If you are going in cash it's not a concern but limiting your option for the purchase financing or refinance option down the line will cause headaches.

Hi Francisco,

What would the other person (doing less labor to repair) be doing? Will they be doing other types of work like getting through the financing, becoming the guarantor, finding the deals, crunching the numbers, doing the accounting, or are they just simply doing less work?

From what I've seen, typically two people doing a flip like this have different skillset so one person is doing different things than the other. The equity split is totally different among each LLCs, but typically it's the easiest to split the responsibilities in 50/50. For example one person does most of the rehab work/management and the other person finds deals, works through the paper work, and sells the flip. Ultimately it boils down to how much value one is bringing in my opinion

You have a lot of equity and the assets you have seem to me in great locations. You could roll it into a higher cash flow deal, but it would be really important to do a lot of homework before jumping in. You can also get into more active strategies like STR and rehabs, but the work required to get in this is significant and at that point you might be able to just get a new role with the same pay with the equivalent effort.

Is your entire industry in a hiring freeze or just your company laying off? Embarking on a new strategy in real estate can be lucrative, but it would be up to your risk tolerance.