All Forum Posts by: Matt McMacken

@Larry Shephard yes I use this strategy. I don't mess with standard banks really anymore. You can call em HML lenders but the legit guys are more commercial lenders imo. They require an LLC and everything's a numbers game. If you can build equity or there's enough meat in the deal, they'll finance it.

@Maddy C. Oh yeah! Full rehabs. I started off subcontracting a lot and doing a little, and now I run a small crew and do a lot and subcontract a little. You can use personal loans as well so your not just confined to HML if your trying to leverage your money.

@Maddy C. Hey! I'm an hour north in Watertown but I do the same thing. I generally use hard money and refinance into a 30 year. Hard thing I've run into is HML like 50k and up in purchase price and for me, I like to be less than 70k into a sfh rental. Over that threshold I'm flipping.

@Renee Fletcher hey sry for the late reply, I haven’t been on in a while. The majority of foreclosures are cash deals. I believe some can be financed but I’m not entirely sure of the process.

However, if you ask yourself how you can get cash enough times, you’ll eventually find ways to get it.

@Josh Early I know I would for sure! Seems like the meetup group faded away.

@Julie Marquez Military members are unique in the fact they can walk right into JAG/legal services and have representation. It’s not going to cost a service member an arm and a leg to get back their money.

If the case can be made that the lease terms specifically target military members as well it could mean serious trouble. I live in a military community and have seen the base blacklist companies and even shut down businesses if they are considered “predatory”.

A lawyer would really be able to provide some solid guidance so that your not putting yourself at risk.

Wanted to share my BRRRR during this unique time with all these uncertainties roaming around. I purchased a home in February 2020 right before the pandemic and murder hornets started. I was about 80% complete with the rehab when businesses started closing their doors and everything was becoming doom and gloom. I kept my nose to the grind and tried to get the project completed as quickly as possible. Luckily it doesn't look like we're headed towards economic failure anymore, but it sure seemed that way for a while.

I purchased a 4 bedroom 2 bath foreclosure for roughly 30K and put another 30K in rehab cost. The house was absolutely disguising! There was such a smell of dog and cat urine I literally started getting headaches after a hour of being on site. 

Today I got the appraisal back and it came back at exactly $100K. My bank can refinance at 70% of appraised value, so at $70k less closing cost, I'll have enough coin to take the kids to Chucky Cheeses (if it ever opens) and have an income producing asset for ZERO out of pocket cost. The property rents at $1200 mo. and should cashflow roughly $500 mo. 

What's interesting about this deal is that there were multiple function of the deal set in place prior to covid-19. I had a portfolio lender that would do 70% LTV. Appraiser's were going into occupied houses. County officials were processing permits. Home prices weren't in question.

Then bam! Covid-19 shows up and starts shutting everything down. Can't even get a haircut and I'm bald! Because the water was not turned on for over a year, it required an inspection by code enforcement to get water turned on. There was a weeks where it was I wasn't sure I couldn't get a permit or an inspection anytime soon. I did shortly after, but then I was being told appraiser's weren't going into homes unless they were unoccupied. Now this wasn't too big a deal seeing I had a foreclosure on my hands, but it did mean that I couldn't put a tenant in without it being appraised. Luckily things started taking a turn in the right direction a few weeks ago and I was able to place a tenant before the appraisal was finalized.  

Now the most important piece of the puzzle was financing. Was my bank still going to loan on 70% LTV or loan at all? I had some serious concerns running rampant in my head. I'm pretty sure I lost my sanity for a second there. In reality, I don't think the bank skipped a beat in the mortgage department, but it was certainly questionable.

So I think what I've learned is that generally speaking.... if the numbers make sense, just do it. Take a leap. The only good day to get into real estate is yesterday. Don't let anything hold you back. Grab success by horns and don't look back!

@Tracy Mason Just think about how much time and effort it takes to really become business savvy. Most business majors take 6-8 years of school and some hands on experience to obtain a solid business foundation.

I’m not saying you can’t do it. But focus on your strengths and find someone to fill your voids.

Create your team and fill it with All-Stars. Just make sure they have different super powers that yourself and you’ll be all set.

@Sean C. Key Bank. I did one with them last year. They could only do 15 years max, but Closing cost was super cheap.

So I’m a Controller for a small construction firm (>25M) in New York. All construction is limited to essential construction only which effectively put an entire stop on our operations.

With the passage of the CARES Act and the payroll protection program, the federal government is setting aside funds for the Small Business Administration for banks to loan up to 2.5 times your average payroll for the trailing 12 months. Unsecured, no collateral. 10 years. Max 4%.

Then for 8 weeks immediately after closing on said loan, a business will be “forgiven” for cost of payroll, rents, utilities, and interest on loan obligations during that time period. In addition, the amount “forgiven” will not be considered income for tax purposes.

Our organization is well over a million in forgivable cost if we apply. 98% are already on unemployment. Are we making money, readily available now to make things worse tomorrow?

-The housing bust in 2008... tons of bad mortgage loans that went upside down.

-Corona Virus 2020.... a flooded amount of mid size loans that were just forgiven?

I have to believe there will be some major consequences in the very foreseeable future. What happens if this pandemic last more than four months... I fear this is what makes a recession a depression...

I’m just a number cruncher, so what do I know lol. Would love to hear from anyone who find this stuff interested. Hopefully I’m wrong...