All Forum Posts by: Mordy Chaimovitz

Why tap into your equity? If you find a good deal chances are you can find a money partner who would be interested in investing with you. 

that's what I did. 

I bought my current residence 8 years ago for 340k. Its probably worth around 550k now. Not to mention the debt paydown i have done over the years. I have enough equity in my home to fund a couple of small properties. 

Yet i just bought 2 townhouses using non of it because i found someone to be the money partner in my deal. 

I am doing the work he is providing the funds. I pay no interest or fees on a heloc or refi and i am not putting my personal residence at any risk at all. 

The only reason you might want to do heloc or refi would be if your looking to brrrr. 

But its not necessary 

Next time ask if it's a bad strategy before you decide to do it. 

but now that you are asking. It sounds pretty bad to me.

Quote from @Maranda Tucker:

Quote from @Mordy Chaimovitz:

Guess what! It doesn't matter if you are making a million dollars a day!

DONT USE IT! 

Find a good deal and use OPM (other people's money) to finance your deals! Partner up with other people who want to invest passivly in your deal. Your return on investment is infinity! You didn't put down a penny!

but if you must know.  I just bought 2 single family homes having no money in savings. Living paycheck to paycheck. I got a money partner that liked the deal and we are going 50/50. Both on the cash flow and the eventual equity from the sale

you can make less them minimum wage and invest in RE. And that is one of the many reasons I 💚 Real estate!

so get a move on and buy something already!

I couldn't agree more!! 2 SFH with no money in savings? That is awesome.

Thank you. And if I might add this was my 1st deal. 
I would encourage anybody that is using the excuse of "not having money" to invest in real estate to change that to "not having enough knowledge"

Learn as much as you can. Then gather your courage and make a move. Incredible things are possible. 

good luck!

+5 units *or* 1-4

What Type of property are you dealing with? 5+ units of 1-4?  I have a lender that can do dscr for 1-4 residential but the rates are  high. Feel free to dm me for more info. 

Quote from @Mordy Chaimovitz:

Thank you! And for all of us newbies out there.  This was my 1st deal. Just found out about this awesome thing called Real Estate investing in January of this year. 

Your turn. 

 Sorry. Somehow this post wound up in the wrong place! 

Thank you! And for all of us newbies out there.  This was my 1st deal. Just found out about this awesome thing called Real Estate investing in January of this year. 

Your turn. 

If I find a good deal I can send it your way. If they like it and want to invest in it I would be more then happy to talk to them about how they can get in on it.

Quote from @Lucia Rushton:

@Mordechai Chaimovitz does this attorney specialize in Real estate? If not, find a new one.

He is correct technically “due on sale clause “ but I think within the comments above you see what you need to do. Best wishes

Excellent question.
He is more of a general practitioner as apposed to a specialist. 

Great guy but not specifically a real estate attorney.
I am sure that as I scale to more properties and bigger deals I will be looking for a specific re attorney. 

Another lesson great lesson from this thread. 

I was advised by a mentor to avoid lumping properties into one llc as much as possible. 

one of the main benefits of an llc is that it protects personal assets that are not in that corporation from litigation.  

Similarly if you have ten properties in one llc and you have a lawsuit in one of those ten properties, Then all ten are liable. 

However if you separate them, then your other entities/properties should be protected as they are not part of that corp. 

has anyone heard otherwise?