All Forum Posts by: Michael McInerney

What's up @Josiah Patrick Zebarth! Yea for me this is such an interesting question. "What is your Why?" Throughout my life I have realized that my "Why" has constantly changed depending on where I was in my life.  And that's what I've come to realize.  Your why can change. It adapts with you. It could range from proving an EX wrong, moving out on your own, changing the fortunes of your family, building a personal brand, helping others achieve a goal, or build a RE portfolio to gain financial freedom.  The thing I try to educate people on who are constantly looking for their why - is to take a more short term approach.  When your why is to build a 50MM portfolio be financially free and live in UAE and traveling the world - it might not give you the immediate energy results you want.  So look immediate. What do you want first? What can you attain with daily action in a month? Use that as your why - and as you grow and achieve your goals, you can set new - Why's.  No one cares what your why is. At some point you will find a Why that is bigger than you.  And that is the Why you'll be able to carry forever. (i.e. your daughter, or son, or a better life for your children)

Just my 2 Cents. but who am I?

@Gualter Amarelo I’ll be wholesaling in FAll RIVER once I get there.

@Casey Mericle Thank you.

I have a property that is completely renovated and listed for sale. I just received this from my Hard Money Lender as options going forward if I am unable to make the monthly interest payments.  I was interested to see your thoughts on how you would proceed being given these same options and why?

I finished a rehab completely and it is now listed.  There are still buyers taking advantage of the great rates, but what if the buying market slows down to a crawl.  What are the options for investors using hard money to pivot?  The hard money rates can eat up a tremendous amount of the profits if this causes a 2-3 month delay in closings.

Specifically in Jersey with open houses, a lot of realtors are doing open houses by appointment only; and the MLS is allowing listings to be withdrawn without it affecting the DOM. I have a house listed right now that I flipped and this would've been the first weekend for an open house. I was originally expecting over 50 people with the original high interest, but I will update you on what the actual outcome is. Stay safe everyone, and hopefully the lower rates hold the market through the virus.

Investment Info:

Single-family residence fix & flip investment in Livingston.

Purchase price: $400,000
Cash invested: $85,000

This is the second of our current Add-A-Level projects. Although this one was purchased first, Due to zoning issues as well as flood zone discrepancies, we are behind. Now with the weather getting better, we are racing to catch up and finish this project just after the other. Again - this is funded by Hard Money and PML. Mac Investment Property Group is subbing out all trades for labor, but we are performing all material negotiations and building department communication.

What made you interested in investing in this type of deal?

This was one of my first Add-a-level projects. I was interested in forcing equity into the home because of the area. Livingston NJ is a ranked school district and many families are looking to move into this area.

How did you find this deal and how did you negotiate it?

I found this deal through another local investor who picked up this lead but didn't have Livingston as their "target" area. They were willing to wholesale the deal in order to focus on their niche closer to the city.

How did you finance this deal?

I financed the deal through Hard Money as well as Private Lenders for initial deposits and carrying costs.

How did you add value to the deal?

I was able to force equity into the deal by increasing the square footage more than 2X, adding bedrooms, and upgrading all of the interior features.

What was the outcome?

It is currently a Live listing. Went on the market yesterday.

Lessons learned? Challenges?

Tremendous learning experience as it was one of my first add-a-level projects. I purchased all materials and managed the projects as the full-time "GC". Lessons include (but not limited to): managing the construction process, learning costs of materials in every trade, learned the building dept process (specifically in this town), Managed two projects at once for the first time, etc.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Signature Realty listed this house. They are tremendous marketers and have investor mindsets. If you are doing work in Jersey, these are highly recommended professionals to work with. From start to finish they can help you pick out designs, what will add highest value, and will market your home on the back end second to none.

@Andrew Enriquez In my numbers I was trying to use conservative numbers in order to make sure the deal works. If I know it works at the numbers I put in the calculator - then I know if I can save on construction costs, time, interest rate, etc. then I know it’s a really good deal. If I were you I would shop around more Hard Money Lenders though because 15% is ridiculous. Lending One, Grand Coast Capital, Alpha Funding Solutions, and Arkad will all be more competitive. And I’m in the NJ/NY area. Depending on where you are, they may be able to fund you at rates closer to 10%. Hope this helps.

Thanks @Whitney Hutten.  I don't see a tab in the calculator that allows me to put the allotted time for the Acquisition part of the deal.  The only place is the amortization tab ; so should I just leave it blank??  Hopfefully this picture helps.  

Awesome, Thanks @John Silva - Really appreciate the info!