All Forum Posts by: Mike Waltman

Welcome to the site @Luis Cajete, always good to see more people from palm beach county here

@Jim Hiler I think I mentioned to you that one of my target groups is the 65+ group. I'm only 3 months into this campaign but 65+ hasn't had a very good response rate and little motivation with the ones that do call. Could turn around as they get hit more times or the ones that have called become motivated but its been pretty cold so far. Might switch up the marketing piece from yellow letters and see if anything changes. 

Also I'm targeting the lower price end of the spectrum, Total Assessed Value less than $200k. Could be different if you're going after the high end. 

Thanks @Aaron Howell seems like a workable solution

@Dell Schlabach The thing is some of these properties still cash flow even after a lumped purchase/rehab refinance, its just too thin for where I want to be.  

Just to clarify, I am most definitely not asking how can I not pay back rehab costs from a private/hard money loan, I'm asking for alternatives to funding the rehab costs outside of private/hard money that do not have to be payed off with the refinance loan. 

You're not wrong, traditionally these would not be deals with my resources. However, a house thats purchased for $70k using private/hard money, fixed up for $30k out of pocket (or some other means) with an ARV of $150k, rents for $1400 and can be refinanced out of private/hard money with a loan between $70-$80k is a deal though (depending on your goals) if you have the right means to purchase.

I'm not saying this is what I want to do, I'm a pretty conservative guy and I understand that no matter what way you slice it there is a lot of inherent risk. This is more an exercise in problem solving. A shift in mindset from 'I can't afford this.' to 'how can I afford this?'. This is what the creative financing section is all about right?

I've run into a roadblock. I've been seeing some houses that are fixer uppers requiring anywhere between $20-$40k in repairs but the purchase price is very attractive and would come out with lots of equity after the rehabs done. I've got private money at 8-10% interest or hard money at 12%. 

I'm trying to run the BRRR (buy renovate rent refinance) strategy. Securing the money for the purchase is no problem, and I could lump the rehab into that borrowed private or hard money but the issue is that when I go to refinance I will have to get a loan to pay back both the purchase and rehab costs. A loan that pays back both would mean the properties would still cash flow slightly but not really enough to make it all worth it.

If I didn't have to pay off the rehab with my refi and instead just refinance enough to pay back only the purchase cost these properties would be cash flow kings. 

Is there any way to creatively fund (and pay off sooner rather than later) a rehab without having to include the pay off into the refinance loan?

My initial thought was credit cards but adding on additional debt paydown + interest after a refinance with no way (at least I think) to pay it all off would kill cash flow for a long time.

If you've got a REAL DEAL in Palm Beach County I'm looking to buy NOW. 

West Palm Beach, Lake Worth, Boynton Beach, Delray, ect. If its between Boca Raton and Jupiter I'm interested. 

Primarily looking for rental properties and have the cash to close quickly. 

If you have a rental property you're looking to offload or wholesale property you need to sell, send a message or call and lets make a deal that works for both of us.

Mike Waltman

561-203-6119

Welcome @Sean McKiernan. You'll find a ton of resources here on BP to help you get started in the education phase. Between the podcasts, forums, and blogs theres more information than you could possibly take in a year.

I have a suggestion though...if you like learning from books, pick up the Millionaire Real Estate Investor by Gary Keller. This book provides a REALLY solid foundation to start from and grow into. There's a ton of other books out there (and if you listen to the podcasts you'll get a few new recommendations with every episode) but this one has so helpful for me I thought I'd mention it.

Also start learning our market here. Look at areas on zillow/red fin you think you might be interested in and then drive around them. Continue doing this until you know all your areas of interest. Call up property managers and see what they have to say about specific areas. Most importantly start going to REIAs, we've got a ton of them around south florida. Theres a good meet up BP members going on Saturday March 12 in Delray that you should check out

So I've got a lead that came through my direct mail marketing that I will be following up on later today or this weekend. I have a little bit of construction experience and have read J. Scotts book on estimating rehab costs but this is my first time actually estimating rehab costs so I would like to get a more accurate opinion and learn from someone more qualified.

I have a connection with a contractor who has agreed to do the walk through with me and help me estimate the rehab costs. I'm still not sure what I'm going to do with the property if the numbers look good and my offer is accepted so they know there is a possibility they might not get the work, but I told him I would pay him for his time and he is good with that. 

What do you guys think is a fair rate for a basic walk-through estimating rehab costs?

Wish it was further south, I'd consider buying it if you put that mother-in-law suite in!

I like the idea because that is exactly what I want as an (personal residence) home buyer with an investor mindset. There's a bunch of upsides to including one that could make it a very desirable addition for certain people.

Since its beach side and in sunny florida, the end buyer may know they will have friends and family visiting (especially during those cold months!). Knowing that people can come visit and not completely disrupt everyday life is an amenity some people will be willing to pay for.

A buyer interested in offsetting their mortgage expense will see it as a great potential to save money in the long run if they wanted to bring in a long term tenant or use it as a vacation rental when they feel like it. Airbnb is making this set up more and more popular and user friendly.

I'm all for it because that is a potential setup I would like to find for myself in the next 2-3 years. I would live in the mother-in-law suite and run the big house as a vacation rental during 'winter' to pull in the big $$ and rent out one of them on a 6 month lease during the spring/summer/fall.

It could create a very desirable product for a specific buyer that will give you a nice price boost or it could turn off some buyers who see it as a waste of backyard space. Think it comes down to knowing your market/buyers at your price point. If you don't have a lot of experience with the buyers in your market yet maybe find an agent that does and ask their opinion.