All Forum Posts by: Mason Liu

Most off market deal finding softwares will be similar to one another (propstream, invelo, deal machine). I personally use propstream.

I believe the key is moreso what type of data you pull from each software, and how you market to them.

Hey there,

In this instance, it would you mean you would assume the loan of 1.7mm, but would have to make up the difference of 2.3mm to come up to the total purchase price of 4mm.

To make it clearer, the listing price is always going to be the total price, regardless of if there is an assumable loan or not. An assumable loan only means you can assume the current debt that the seller has to take over the loan, but you still have to make up the difference by either cash or some other form of second position mortgage/loan you are able to procure. That is typically a more challenging aspect of dealing with purchases with assumable loans.

You can ask the seller if they are willing to seller finance a portion of the 2.3mm difference to lower your out of pocket expense.

 @Share Ross is a local agent here I would recommend!

 Do you have a local real estate agent in the space who deals with investors? If not, I'm happy to refer to an agent I work with here.

Off market properties involve a lot more leg work. Driving for dollars, marketing campaigns via direct mail / cold calling. That becomes more a business. Not saying you shouldn't do it, but that involves a whole new game plan.

They absolutely are important.

There have been macroeconomic concerns at every point of time in the history of ever. War/Political Strife/Trade Wars/Inflation/Deflation/Staflation/Fiscal & Monetary policy concerns...you name it there's always something going on.

Some things will have a direct impact on real estate. For example the expansionary fiscal and monetary policy during COVID that led to one of the greatest real estate booms we've ever seen, as well as the subsequently the contractionary policies that led to a freeze up in the market.

In general, macroeconomic factors will have macro effects, meaning it won't just affect one property in isolation. If other countries decide to stop exporting steel to the US as a form of trade retaliation for example, we will probably see a large increase in domestic steel prices due to lack of supply, which in turn will lead to increase in cost of construction for home building and thus probably a national increase in home prices over time. Just an example of how it has more of a larger, all-encompassing effect.

That being said, I'd say the 2 most pertinent things at play now are 1) high affordability cost due to interest rates and 2) lack of supply in the market still. I'm of the personal opinion that as long as I can get a property in a decent area and cash flow just a bit now, it will pay off in the long run because interest rates are temporary, but the lack of supply dynamic is a more pervasive macroeconomic issue. Just have to make a judgement call based off of how you perceive the macroeconomic climate, and then try to be the best individual investor you can be.

Hey Benjamin,

One thing I'd say is that it is pretty tough to find fixer upper homes (even townhomes) for less than 250k in palm beach county on market unless you're looking in some rougher neighborhoods, maybe some parts in Lake Worth. It can be done for sure, you proably will just have to make lots of offers and be prepared to get a lot of rejection.

Agreed with @David Ramirez . 550 is a very low credit score, I'd say minimum 600, but I'd also take a very close look at the credit report for anyone who has a credit score between 600-650.

 Understood on the cash flow aspect, we all always want more. 

I'd say this, if you can find an investment opportunity with a higher assumed total return (including fees/expenses associated with selling this home and purchasing something else), go for it. However, like what other members have mentioned, it is important to factor in a assumed appreciation rate, rent growth rate, and the loan paydown benefits to the cash flow. Now, I'm of the personal opinion that we can't really assume that any property can appreciate in value in the short term in today's market in our underwriting, but long term I think we can still factor in a 2-3% appreciation growth rate. Your loan paydown is probably 2-3%. Finally, though cape coral (and most of florida) rents have decreased in recent months, historically rents have increased by 1-3% per year.

If I were in your shoes, unless I found a screaming deal elsewhere and I am happy with the current tenant in the home, I'd stay put. 

I'm curious as to what everyone is seeing over the near-intermediate term future for home insurance rates in Florida. Do we see a large difference between south / central / north Florida? Will we perhaps see a reprieve in home insurance rates in the future as we potentially see regulatory changes to decrease insurance fraud? Will new players enter the insurance market, perhaps institutional?

Hey Stephen,

Have you spoken to any commercial lenders about this yet? They would be able to give you their underwriting guidelines as well as minimum DP, and also may be able to look at your overall net worth and real estate portfolio to determine what is the best way for you to put down collateral for this loan. I do stress that it is important to talk to multiple lenders to get a sense of where market loan terms are at and where you get the best terms. 

Another point to consider...if you do pull out equity from your existing portfolio (say 1.5mm to cover initial DP, closing costs, any repairs), that is a new monthly liability that you are paying interest on. In addition to, not sure if this 100 unit apartment complex is already stabilized or will need much work and be in the red for a while, but that may also be a net outflow as well. Are you prepare for this?

Just some considerations.