All Forum Posts by: Mitch Hartford

I personally like to refinance myself. I don't like having short term payback deadlines that usually come with HELOC.

I leave them on the door if no one answers the door. I also take a few pictures if taped to the door. 

I like the live in flip. I’ve done it twice. It’s so good it’s almost like cheating. 

The bank doesn’t care where the 20% down payment comes from, as long as their only putting in 80%. Ask your seller to hold a note for 15%. It’s basically a second mortgage. 

Partners Bank is giving 4.1%, 20% down, 25 year term with interest that resets every 5 years (based on prime). Loan is commercial, they want you to close in LLC or other corporate structure.

20% down does not have to be  your money. You could put in 5%, have the seller hold a 15% note. 

They do business in Maine, New Hampshire and Northern Mass

I’m just starting to play with the BP Insights tool. It’s pretty cool. One question though, I see “Confidence:Low” on every property I put in, no matter the neighborhood. All properties I searched are in New Hampshire. 

Does anyone know how the “confidence” is calculated? 
Thanks, 

Mitch 

Im checking out BP Insights for the first time and I keep seeing Confidence:low. I understand what low confidence is but how are they judging an area? Or a better question maybe be, what are the market indicators BP insights is using?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Rochester.

Purchase price: $176,000
Cash invested: $20,000

Side by side duplex for BRRRR

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

Passive income through buy and hold is my strategy.

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

Another MLS deal. I like properties that sit a while. The owners get anxious.

How did you finance this deal?

Commercial loan through a local credit union.

How did you add value to the deal?

Currently remodeling one side and will transition to the outside. There is also the possibility of subdivision of the lot.

What was the outcome?

In process...

Lessons learned? Challenges?

I’m a 20 year veteran, haven’t learned a bunch on this one yet. I’m sure the learning and challenges will come from the subdivision.

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

Tim Fontneau with Hourihane, Cormier and Associates is my agent. He’s really good with small multi families in my area.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Rochester.

Purchase price: $76,000
Cash invested: $100,000

I bought an up down duplex in 2016 and remodeled inside and outside. Slow BRRRR strategy in motion now. I have done all my own work, that's about change. I'm in process of pulling $100k out as we speak. Will use this cash for down payment on the next one.

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

I have flipped properties in the past and that’s just a job to me. I want something more passive. I’m really thinking I may get into notes when my net worth allows.

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

It was on MLS for a while. No one wanted it, it was junk. We made an offer and it was accepted.

How did you finance this deal?

I financed this deal with a commercial loan from a local credit union. By the way, commercial loans seem to be easier and worth the extra interest charged.

How did you add value to the deal?

I remodeled the whole building inside and out and then raised rents to market value.

What was the outcome?

$2800 monthly income, almost $200k in equity.

Lessons learned? Challenges?

I have a habit of buying occupied buildings and waiting for a tenant to leave before remodeling. In the future I may try to push that process along a little.

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

Tim Fontneau of Hourihane, Cormier and Associates is my real estate agent and has been for 20 years. He owns lots of small multi families in my area himself so he knows the market.

Ok, here goes, I'll do my best. You can refinance into an LLC, I've done it. A commercial mortgage will allow you to buy a duplex in LLC. I didn't keep books as an LLC and the bank didn't care. Not sure about your liability and tax benefit question. My tenants do pay rent to my LLC's.

Congratulations on your new venture! I would recommend listening to the podcasts here on Bigger Pockets if your not already doing so. They have a wealth of knowledge.