All Forum Posts by: Mikael Winkler

Others may differ, but at least at this point in my career, I'd rather work with hard money lenders than actual private money investors. For me, it's more of a mental thing. Especially considering my last deal. There were some challenging points, and I don't know how I would've mentally coped with not only having to hear bad news, but also have to turn around and deliver that bad news to the person whose money I was using. 

@Jordan Smith

Are you really looking for an individual as a private lender, or, as @Remington Lyman mentioned, are you open to hard money? I just finished up a project with LimaOne. It was a flip, but they do have a rental product, as well. My experience was pretty good. A little rocky initially, but that was more a function, admittedly, of me not understanding how most HML operate. I didn't know most operate in a reimbursement model until after I closed haha.

However, once I got used to that, it went pretty smoothly. I plan to work with them again. Not sure if most work like this, but the more you work with LimaOne, your rates get steadily better.

Any questions, just let me know. Good luck!

Admittedly, I don’t have much experience in how pulling or not pulling permits can affect a project. The items I have had pulled for in the limited number if projects I’ve done thus far were mainly hvac related, and those weren’t really adversely affected time-wise.

For me, it seems like your contractor knowing they need to pull permits is also a good way to ensure they’re doing quality work. At least, on my last project, the contractors who did the most quality work were the ones who assumed it was a given they were pulling permits. The contractor who “assured” me he would order his guys to stop working and not talk to a city official if one showed up was also the one who skipped the job when he landed a bigger one.

I know that’s not every situation, but to me, wouldn’t it just be better to have them pulled?

I think the big key will be seeing how Millenial preferences begin to change, as they age. It seems that age group is the next one that will have a massive impact on how the economy will look moving forward. Will they choose to remain predominantly in cities or begin moving out to more suburban areas? I think there has been some indications this may be beginning to happen to a certain extent.

I think it will also depend on what the entertainment/leisure scene looks like in a lot of these cities after COVID. As an example, my wife and I lived in the Short North in Columbus for about three years when we first moved in together. We lived there pretty much exclusively for the walkable bars and restaurants. We were actually just talking about this yesterday. For those people paying sometimes upwards of $1500-$2000/month to live in that exclusive area, are they starting to question if it's worth when all their favorite bars are currently serving last call at 10pm and brunch spots are at limited capacity? Obviously, it won't be like this forever, but I don't think anyone really knows when "normalcy" will return. Will all those bars and restaurants survive, and what will the landscape look like? These are all hypotheticals, but may have real impact on housing preferences moving forward.

Hey @Joe Chillinsky! I do agree with @William Alonso. It is getting harder to find listed properties that produce that 1% ratio. However, I believe there is more of an opportunity when you're looking at value-add type properties that need work. 

Hey @Jack Abbott! Who are you using? I have a HELOC on a rental with PenFed CU. Not sure if they have a stipulation against having other HELOCs open. I wouldn't imagine so? As long as they have first lien position on that one you're looking to take it out on.

Thus far, they've been great for me. Maybe reach out to them and see. Good luck!

@Morgan Hill

Yeah, as mentioned above, you really just have to trust your numbers. There will always be fear, but that's okay. You just have to accept it and pull the trigger if you have faith in your analysis. And, if you have setbacks, they're just learning opportunities!

I just finished up a flip (first one ever), and I lost $15k haha. But, I understand the mistakes I made and how to correct them moving forward. I'm just taking it as a learning experience, and I'm ready to find the next one.

@Morgan Hill I agree with the above regarding Columbus. While you may be able to find a crusher of a cashflow deal, they are becoming exceedingly rare. Could probably find them if you're direct marketing to owners, but in any other circumstance, listed or wholesaled property, you're probably closer to the 1% rule. That is still really good, though. And, Columbus is seeing some fantastic appreciation, like @Zeke Liston mentioned. Definitely an opportunity for both, with the right property.

Hello @Hannah Robinson! That's awesome that you've decided to start the journey toward REI. A house hack is such a great way to get started. That's what I did with my first one. My wife and I bought a duplex and lived in it for period of time.

Regarding lenders, most don’t necessarily look negatively on student debt in particular. It’s more about overall debt to income. That could be student, along with many other types of debt. Essentially, they look at debt in its totality. While most lenders don’t want to see debt to income of much higher than 40%, that can vary lender to lender.

Right now is actually a great time to buy, as rates below 3% interest on a 30 year fixed owner occupant mortgage can found.

If you have any other questions, don’t hesitate to ask!

I agree with @Remington Lyman regarding Columbus for sure. As with a lot of places, everyone was holding their breath. But, it seems prices have remained high or higher, with relatively short days on market.

Regarding rentals, I don’t think collections have been much lower than usual. Columbus does have a pretty diverse economy, though, so perhaps that is helping.