All Forum Posts by: Ley Nezifort

Hey BP!

So I listened to the 2 Grant Cardone episodes on the BP podcast (his first one is one of the best podcast episodes I’ve heard), and I’m completely sold. Now I’m looking to go from a 4 Units to a 20 Units.

Just wanted to ask you all, how many units was your first commercial property, and where was it located ?

Did you jump directly to commercial or did you play around in the residential space first ?

Also, I’m looking to put together a team (Property Managers, Brokers, Lenders etc...) in Philly, so please recommend if you have any suggestions.

@Justin Witt I'm assuming you can't put it directly under the LLC at closing because you're not putting 20% , so your lender won't let you ? I'm going through the exact same situation, and my CPA & Attorney advised me to transfer the deed a couple weeks after closing.

As far as where the mortgage payment is coming from, that is an interesting so I’ll definitely like to know the answer to it as well . But my assumption is that the bank wouldn’t care long as they’re getting their mortgage payments.

@Sarkis Azatyan Welcome to the world of financial freedom!! As many would suggest, the best place to start is by educating yourself (reading books and listening to podcast) , learning your different options based on your current situation; I’d highly recommend the book Set For Life as this stage of your life.

As you’re learning, I’d also recommend you start talking to agents so they can send you deals which you can analyze (even if you don’t plan to put any offers just yet)

Once you’re comfortable , you can look to HouseHack a multi-family (up to 4 units).

@Chris Mendoza Home Possible is a low down payment mortgage that Freddie Mac offers. It allows you to get up to a 4 units property with as little as 5% Down. Here's a quick comparison to FHA

Pros:

- Lower Monthly Mortgage Insurance (PMI)

- Most sellers like conventional offers better than FHA offers

Cons:

- Typically slightly higher interest (about half a point to 3/4 of a point)

- Higher Credit Score Requirement.

Even with that, I still prefer HomePossible over FHA, because I'm able to save a couple hundreds a month from the PMI , and that helps my cash flow.

@Chris Mendoza Though they just made their requirements a bit harder to qualify for , but a Conventional Freddie Mac HomePossible might be a good option here; you can get an owner occupy multi family (up to 4 units) for 5% Down.

I see you’re from Jersey, I actually invest in Newark, NJ and I know a really good lender. I can refer you if you’d like.

@John Collins if I had $100K and lived at my parents house, I'd totally use that money to BRRRR with in a cheaper market. Reason is, when you BRRRR that same $100K can be recapture (the Refinance part) so you can then repeat the same process.

I'd do enough BRRRR until my total monthly cash flow exceeds my monthly income from my W2, and then I'd maybe think about parking that $100K by acquiring some properties (not one) with 20% Down.

PS: I’m 24 as well, and I’m strictly a cash flow investor, so you can definitely PM me if you want to bounce some ideas. 

@Manuel Savorelli I personally save my seasoned funds in a High Yield Savings account, especially if it’s money I’m looking to use for down payment within the next couple of months. I use Marcus By Goldman Sachs, their interest rate was as high as 2.25% but went down to 2% due to the recent rates cut from the feds. There are some other solid options out there too.

@Pamela Morrison Thanks for the quite insightful perspective. My partner and I are currently buying a couple multi-Families there. We kind of expect the property prices to drop a bit if that issue persists , but we are cash flow investors, so we are mostly concerned with what would happen to rental income.

@Mac F. What you said made a lot of sense! Do you then anticipate a significant increase in property taxes even when the underlying assets themselves have not appreciated per say ?

Hello Newark Investors, 

        I wanted to reach out to a bigger audience and get some thoughts regarding the Newark Lead crisis which has contaminated the water and how this might impact the real estate market there. Do you guys think this might be as bad as Flint Michigan? From my experience, it seems like the market is still very competitive there because a lot of properties have multiple offers, but could it just be a matter of time? I'd love to hear your thoughts. 

Thanks, 

Ley