All Forum Posts by: Michael Masterson

Don’t buy an asset that isn’t currently cash flowing or has potential to cash flow. At least not to get started-there’s some benefits to selling at a loss but cash flow I’d say is king in this market. Playing the appreciation game is a huge gamble, with a lot of unforeseen future moves with rates and segmented markets. 

Contact owner non aggressively saying you want to buy. Keep on them, keep on them keep on them. Listen to episode 335 w/ Ryan Dossey-it’s solid advice and approach. Has helped me get some very legitimate leads in my market. If you get an “in” and they open up to discuss their situation you may even get a better discount. Guy may just want out. 

What tenants are you trying to attract? Is there a true value add in the property monthly? I typically will give myself the rule of reimbursing myself for improvements within 48 months. If I can raise rent $600 a month my rehab budget should be below $30k. I typically don’t take into account the improved equity position as a net because of the unforeseen with tenants/market. Additionally I’m primarily buy & hold though FYI. It sounds like you and your partner need to make the decision of the product you want out there, and get on the same page. If you want high end tenants, and they’re trying to be slum lords  that’s ok.... Many ways to do this Just maybe not together. 

100% worth it if you’re willing to straight hustle. Often agents are being asked to show properties when others aren’t working so you may have some late nights as you can probably imagine. Additionally if you’re trying to get into real estate you’ll get a lot of first glimpses into properties. Depending on your results in sales you may find the costs prohibitive annually but you’ll never know till you try. 

I would agree with the above sentiment that OPM is never free. Your value is there but you may want to explore a purchase money lease, or a land contract with this individual. Have a discussion with them about their goals, and see whats in it for them. 

if its owned free and clear you can typically get a HELOC as long as title has been in your name for more than 6 months. Even if its non primary you can still typically go 65-75% LTV>

Just went through this with Huntington bank successfully. Only issue I ran into was the value was much higher than when I purchased and with it being less than 12 months they had to take the original value. 

@Vaibhav Verma I wouldn't wait if you can qualify now with HML, especially given the value increase. The difference in bps is nominal in the long run if you can put the money to use now.

Yep-it sounds like a decent opportunity honestly. Of course its all your choice but 10% in your market is great. Once you get the properties operating like yours it should be "easy" money. 15 is a lot to take on at once, but if you put the right software or processes in place and are diligent about sticking to it you'll be dedicating a small amount of time to them within 2-4 months I imagine. 

Is he attempting to tell you how to manage them? Or is he giving you the opportunity to take them over because the current way of doing things is a mess? Personally I manage my own, along with my families properties and just have been explicitly clear that they must do things as I would with my own properties or I'm not interested in handling the mgmt. If he is a successful businessman he will appreciate the honesty. If you have solid performing assets and think you can increase rents, or lessen the vacancy window with technology or just plain attention he can't add I think you will be able to structure it exactly how you want. 

I second the recommendation of @Mitchell Litam with First Federal lakewood for MF props. They know the area well, and common things that larger institutions would indicate as "problems" they tend to look past. Another place I'm very fond of for first and 2nd liens is Firefighters Community Credit Union. 

Lots of opportunity in Lakewood for the right investors.