All Forum Posts by: Michael B.

The issue is find deals, but i also have to pay my LOC plus new mortgage so the number don't add up i keep going under water on the deals I underwrite. I pay the whole deal cash but i still have to pay like 16k month on interest for the LOC. So it takes my profit from the new building completely. IDK what to do can any one here give me a new strategy. Im looking at deals from 15 unit to 35units in miami. Should i just wait it out.

0 Votes

Hialeah, Florida

0 Votes

Miami, Florida

Quote from @David Song:

@Greg R.

Housing prices will always go up. Buy anytime. - bigger pockets.com

Reality: numerous REI lost their life savings in 2009 and maybe 2022. Over leveraging, insufficient reserve, short term loan with balloon payment, etc.

Flippers bought in Q1 2022 will learn the lesson now. Many of them are losing their shirt. None will tell you publicly.

The price decline started in April 2022, and has been declining for the last 4 months. The bottom has not been reached yet. This is nationwide, from CA to Texas, everywhere.

What do you guys think about miami Market?

0 Votes

Dallas, Texas

Quote from @Larry Turowski:

I acquire using cash and my HELOC, mostly, sometimes hard money, and rarely with long term financing up front. And then I refi into a portfolio or commercial loan after rehab.

People are always asking if they should buy rental property using their HELOC for the down payment or entire purchase, and is it "safe" to use the equity in their home to buy investment property.

HELOCs are such a great tool for investors to get started, and keep going. Few people have 10s or 100s of thousands of dollars sitting around doing nothing. Most of their savings is going to be locked up and inaccessible in places like a 401k savings plan. But lots of investors can start with the equity in their house. It is super easy to unlock and if you are not using it, it isn't sitting around doing nothing, it stays in your house and you pay no interest. It is the swiss army knife of investing, there when you need it for strong cash offers, repairs, rehab, etc, and sitting quietly in your pocket when not in use.

YEA its great way to speed up your property investing venture. I just took out 2.5 mil on a building waiting for deals in MIAMI to pop up. I would most likely deploy all of it into one building, rehab it and REFI pay back my first position. What do you guys think. Tell me what you think about using the LOC for Down payments only.

0 Votes

Trying to figure out my best options thats why i am here. I have found a 14 unit building in prime miami 1.8 million price. building is also already renovated. An i can icrease rents to market value which is 20% more. What i want to know is if i should buy the property cash with my LOC or just use it for 30% down payment. Still have to pay back the LOC either way. With the 30% down payment ill have a lot more money to buy other deals down the road of uncertainty.

Let me hear some creative idea.

Financial Summary - Unlevered		Current		Stabilized
	Per Month	Per Year	Per Month	Per Year
Gross Annual Income	$17,600	$211,200	$20,150	$241,800
Total Operating Expenses	$3,926	$47,108	$4,614	$55,362
NET Operating Income	$13,674	$164,092	$15,537	$186,438
CAP Rate - Unlevered		9.0%		10.2%
Operating Margin		77.7%		77.1%
Expense Ratio		22.3%		22.9%

0 Votes

Miami, Florida

Quote from @Andrew Hogan:

Another strategy I see a lot of investors use is the old 'arbitrage play': borrow at one rate and get a fixed income from another. (borrow in 3's, 4's, or 5's, and clip a 10% every month)

It's not a 20-30% returns by any means but is often the much safer route when you've got a loan to pay off.

Good luck @Michael B.

YEA thats probably what ill do. B or C class property to cause now days the fixer uper have the same cap of a brand new building no room to play.

0 Votes

Hialeah, Florida

Quote from @Percy N.:

@Michael B. it is unlikely you will find a good property "half off" in this market.

Cap rates will increase in a bit but not significant enough to get you 50% off unless it is a foreclosure (even then it is unlikely).

Well not 50% but a lot better deal then they are now.

0 Votes

Miami, Florida

Quote from @Dakota Brown:

Although the market is tight right now, there are still deals to be done... it just takes a little more work to find them.

I just helped a friend cash out refi a multifamily property here in Florida at a 4.5% rate. With inflation being over 8.5% here in Florida, it makes sense to put that money to work instead of letting it sit on the sidelines.

I was thinking of doing a line of credit having the money sit till the crash and buy properties half off. You thinking i should just do a cash out refi an start paying P&I an start looking now?

0 Votes

Miami, Florida

In this market i don't know what kind of loan or line of credit i should go with. Lenders are giving me 3 million LTV.

Should i do a line a credit buy a building cash and refi and repeat?

Should do 30 year Amortization and lock in the Rates?

I need some big investor help here.

0 Votes

Miami, Florida

In this market i don't know what kind of loan or line of credit i should go with. Lenders are giving me 3 million LTV.

Should i do a line a credit buy a building cash and refi and repeat?

Should do 30 year Amortization and lock in the Rates?

I need some big investor help here.

0 Votes

Miami, Florida

All Forum Posts by: Michael B.

Michael B. has started 12 posts and replied 26 times.

Post: Im stuck i have a pretty hefty LOC nothing underwrites

Post: Im stuck i have a pretty hefty LOC nothing underwrites

Post: Housing crash deniers ???

Post: QOTW: How did you / are you financing your investment properties?

Post: Massive Line Of Credit

Post: I got a building with ton of equity worth around 5million.

Post: Need help Options on Loans.

Post: Need help Options on Loans.

Post: I got a building with ton of equity worth around 5million.

Post: I got a building with ton of equity worth around 5million.

Michael B. has started 12 posts and replied 26 times.

Biggerpockets Logo Post: Im stuck i have a pretty hefty LOC nothing underwrites

Biggerpockets Logo Post: Im stuck i have a pretty hefty LOC nothing underwrites

Biggerpockets Logo Post: Housing crash deniers ???

Biggerpockets Logo Post: QOTW: How did you / are you financing your investment properties?

Biggerpockets Logo Post: Massive Line Of Credit

Biggerpockets Logo Post: I got a building with ton of equity worth around 5million.

Biggerpockets Logo Post: Need help Options on Loans.

Biggerpockets Logo Post: Need help Options on Loans.

Biggerpockets Logo Post: I got a building with ton of equity worth around 5million.

Biggerpockets Logo Post: I got a building with ton of equity worth around 5million.

Post: Im stuck i have a pretty hefty LOC nothing underwrites

Post: Im stuck i have a pretty hefty LOC nothing underwrites

Post: Housing crash deniers ???

Post: QOTW: How did you / are you financing your investment properties?

Post: Massive Line Of Credit

Post: I got a building with ton of equity worth around 5million.

Post: Need help Options on Loans.

Post: Need help Options on Loans.

Post: I got a building with ton of equity worth around 5million.

Post: I got a building with ton of equity worth around 5million.