All Forum Posts by: Marvin Meng

First of all kudos for trying to do the right thing. But I'm putting "...I will not be left in the garage" in my will!

Yeah, I think that is the route I'm going. Thanks!

Hi, I own two single families, a duplex and a fourplex in Southern IL (STL area). The two single families I've had for several years - the other two were purchased in December. I'm interested in taking out a line of credit leveraged against existing equity for new purchases. My understanding is B2R will lend against cash flow. Either way would be fine. Lacking other data I'd go with whichever gives me more money with which to work.

That said I'm very risk-conscious. If the number at the bottom of the spreadsheet isn't black that's a non-starter. But I don't mind (lots of) leverage if I'm doing something positive with it.

My question: If this were your situation how would you proceed? I'm talking to local banks (whom I've worked with before) and they're pointing me toward traditional lending. I'm also looking into B2R. I'd love any suggestions about lenders and/or strategies. My goal is to balance aggressiveness and risk in growing my portfolio.

Thank you!!

House 1

Est Value: 90000

Balance : 61000

Equity: 19K

Cashflow to date: 4000

House 2

Est Value: 110000

Balance: 70000

Equity: 40K

Cashflow to date: 2400 

Four plex and duplex (bought together)

Est Value: 280000 (this could be more – We’ve raised the rent in three units and gross rent is 47400)

Balance: 222000

Equity: 58K

Cashflow to date: 5700

Total equity is 117K

Thank you both for your responses; I always welcome food for thought!

John, I think broadening beyond 10 miles would be a good idea. I'll study up on those markets (O'Fallon is near Scott AFB so that's a really good idea). There are a lot of multis in Edwardsville but the owners tend to hold on to them pretty tightly. That said, maybe some of the techniques wholesalers use to find motivated seller might find multi owners who'd like to get out. Worth a try!

Ahsley, the single families are cashflowing a couple hundred in the black each month and it's been a while since I'd refinanced so I agree that a HELOC or refi/cash out would be the way to go. As far as a multi-family agent in the area I don't think there's enough turnover for someone to specialize in that but I could be wrong and it's worth looking into. I'll post what I find out.

Thanks again!

James,

Thanks for the response! I can't remember if I've read the ABCs of Real Estate Investing; right now I'm reading everything I can get my hands on. But I'll check it out.

I think your advice about sticking my neck out is spot on. I need to figure out how to target potential sellers who's properties meet my criteria. I imagine I'll just pick a list provider and see how it goes.

Thanks again!

Bump...

Let me rephrase the question(s). I think the main thing holding me back right now is lead generation. I'm considering using one of the mail-list services but that seems like quite a jump from what I've been doing; working with a realtor and searching the MLS.

If anybody can recommend a service they've used(and had a good outcome with) I'd appreciate it. I'm particularly interested in finding motivated sellers in a relatively small geographic area (in or within 10 miles of my town). Thank you!

Hi,

I'm a relative newbie/pro member. I've had two single-family rentals for a number of years but still consider myself fairly inexperienced. Last year I lucked into a four-plex and a duplex. For the time being I'm intending to use the equity from the two single families and the cash flow from the two newer properties to fund additional purchases.

In my area (Edwardsville, IL, a suburb of St. Louis) multi-family is hard to come by (almost never makes the MLS). I'd love to find more and larger multi-family properties but I think the most realistic approach to growing my business in this area is for me to focus on finding single-family buy-and-holds (most likely 3/2/2s).

To that end I'd like to use wholesale techniques to find motivated sellers. There seems to be a chicken or the egg dilemma regarding which actions to take first so I'd love to hear any advice (either answers to these questions or other thoughts).

• Should I use a letter campaign to find motivated sellers?
• And if so can you recommend any good services for getting list?
• Would you focus on any specific category (divorce, pre-foreclosure, REOs...)?
• Should I be getting more financing together before moving forward?
• Should I consider getting a broker's license?

Thank you!

Hi,

I've been doing some investing in the Edwardsville/Glen Carbon area but am interested in learning more about the St. Louis community. I'm interested in attending any meet-ups.

Hi,

I'm a small-scale investor in Edwardsville/Glen Carbon but I'm interested in finding single or multi-family residential in the S. St. Louis/STL County area. Can anyone recommend a good investor-oriented realtor in that area? Thanks!

'99 Accord. 95,000 miles. Paid for but... I can't haul drywall, or plywood with it. (Does surprisingly well with 2x4s though.) But I am looking for a truck and I'll be surprised if I can get away with paying cash. It'll have to be cheap though. Maybe a Silverado, Tundra or a Sierra.