All Forum Posts by: Mark Costa

Michael,

Sorry to hear about your troubles. I am not sure I follow your math in the second to last paragraph.  Here are the numbers I have:

ARV = 250,000

70% Target = 175,000

Subtracting costs

Bathroom & floor = 164,000

Holding costs 157,000

So you would have $157,000 to take care of the foundation.

Or did I miss something?

I will reiterate what Christopher said - run your numbers and make an offer that works for you. If the bank gets better offers you can spend the time asking how you can be more competitive in the future (e.g., running your own crew). If the bank does not get a better offer but turns your offer down, follow that property and re-submit the offer again. 

I offered 50k for my first REO. The offer was rejected at least 3 times before the bank accepted it at that price. I never budged because I knew that number was going to work for me, and it did.

Thank you for the responses. As much as I hate to hear the word "could", I am not surprised that like everything important in life, the answer is complicated.

As to why I want to partner - because it seems to be the fastest way to leverage hustle, knowledge, and money to build a reputation as someone to partner with on larger deals. Even if a partner and I take turns playing bank for one another, I am still limited to doing deals up to the cash I have. Even great BRRRs tie up cash.

Hello BPers,

Thanks to the advice and inspiration from these forums I am now at the point where I would like to partner on some deals. Because these deals are relatively small, I assume they will be recourse loans. If we take out a loan together on a property, does splitting the income while each assuming joint and several liability escalate our respective DTI ratios fast enough to quickly disqualify both partners from future recourse loans?

If partnering does affect the DTI negatively, how do other investors handle this situation?

Thadeous,

I had luck with AmeriCU for a HELOC but that was for a primary residence. If you PM me, I can send you info on another friend who might be able to help. You can also contact @Timothy Maloney, who has other products you may be interested in that can help with your situation. He's pretty knowledgeable on flips in this area.

The one issue that may impede your progress is HELOCs are most often offered on primary residences. Some lenders will offer them for second or LLC owned properties but they go off the appraised value of the property as is, and often no more than 75%-80% of the appraised value. I am not sure where you bought that house but few properties that need flipping appraise as is for more than 75k.

HTH,

Mark

Michael,

I totally missed the fact that you have a link to a company that does exactly what I need in your signature.

And so as not to be biased, Postcardmania does customized campaigns as well.

Cheers,.

Thank you @Michael Badin and @Seth Williams. Not only were your answers helpful but they also nudged me to start studying my market more in-depth.

Seth,

Thank you. I've seen IRR.com a few times but always wondered why they stopped at B-class neighborhoods. Nevertheless, the info is helpful. That leaves out 3/4 of the Syracuse area. Some C-level coverage would be nice.

How long are you in Syracuse for?

I recently tried using REIPro to identify owners of multifamily apartment complexes in my area. I like how you can easily order postcards from the lists available included in the service. However, the postcards are pretty generic so I thought I would order my own cards to be sent out. I found a few sites that will mail the cards out to a list, but I want to take it one step further and dynamically add text. Specifically, I want each postcard to list the street address of the property I am interested in, similar to what REIPro does.  Does anyone know of such a service?

Evening BP,

Has anyone gone through a commercial refinance/purchase in the Syracuse, NY area within the past few months for a multifamily apartment building? Specifically, I am looking for someone who has financed 5+ unit properties. If so, what cap rate and assumptions did the appraiser use? I am looking at perhaps doing a BRRR type strategy on a MFH and want to be able to estimate what the ARV will be.

Thank you.