All Forum Posts by: Monique Rene Coates

@Derek Kirkwood

Ok, AGREE that $710k with the $120k repairs deducted = $377k max offer using 70% rule

A.  Don't agree.  1% is based on purchase price not ARV

B. I compared $1700 rent to just $450.00 PM expense per month with $0 mortgage

@Mar Now

The other question about taking out the HELOC also becomes, can you raise your $1700 rent in the SFH to create more cash flow while you are rehabbing your multi-unit property? That would be a good strategy to get you up and over the BRRRRidge . . too, depending upon when tenant leases are due, and rents can be raised in the multifamily property. Or new tenants put in, if the old tenants want to move out for whatever reasons . . .

@Derek Kirkwood  

Just curious Derek, which property ARV did you apply the 70% rule to, in order to get to a max offer of $377k?  

The multifamily 3-Unit property Est ARV = $710k, so 70% rule / offer = $497k not $377k.

The SFH Est. Current Value = $350k, so 70% rule IF SOLD = $245k.

Then the 1% rule of monthly rent to purchase price is also a bit off:

A. Multi-family = 5,200 / 450,000 = 1.15%

B. SFR = 1,700 / $450 ($0 mortgage) = 3.78%

@John Leavelle  @Mar Now   - HELOC could still work just fine as temp solution until refi of multifamily = BRRRRR

My first 2 questions on a multi-unit, and especially a small 3 - 4 unit would be:

1. How long are the tenant leases on each unit?

2. Ask for one year of income / rent rolls and expenses

Keep in mind that on a very small multi-family, if you lose 1 tenant, that could be 25-33% of your gross income, dependent upon number of total units you own.  BE CAREFUL how you pick your tenants if you go this route.

I have another suggestion, but it also depends upon what type of wholesale deal(s) you're looking to purchase, but for multi-unit / commercial property types, LOOPNET is a good hunting ground for off-market.

Agree with everyone. Owner or seller financing can be a good deal, but it depends upon the terms of their portion of the financing, and what they require you to bring to the table for your part of the deal = down payment, length & amount of payments, interest rate etc.

Interesting! I've learned something new today. I also never heard that you have to season your own HELOC monies. Is this something new?? In the past I've used HELOC funds for different purposes without having to have the funds wait in a bank account for any period of time . . . .

@Nicole Collins just keep this mind as you search for your Multi-Unit / MF property . . . the  total gross rental income divided by the number of tenants / units = gross rental income per unit.  

The LESS UNITS you own, the less gross income you will also have if you lose a tenant, for whatever reasons.  

The MORE UNITS you own, the less losing a tenant will IMPACT your monthly gross income = BOTTOM LINE.

@Mark Whittlesey Thank you for all of the information on EBF. I appreciate it!  It explains alot of detail I was curious about.  Again, thank you.

Hi James, Gary, Mark, Cliff - thanks to all of you for your information on EB / EBF.  I have been looking for reviews & more information on the company for several years now, from both the buyer and lender sides. 

I have also spoken to EB/EBF a few times about properties and notes, but like everyone else, the returns seem "To Good Go Be True."  Reviews were mixed, but they seem much better now, as the company has grown and gone threw some "pains" it seems.

I do have a question for those of you who have been successful with EBF, if you don't mind sharing . . . 

1. How much was your FIRST note investment? 

2. Once successful, what % increase was your 2nd note investment?

Thank you again,

Monique Rene