All Forum Posts by: Nick Stoddard

the initial purchase price is really arv, this form didn't have arv. This deal seams to fit all the general rules most of you live by. Thoughts? It's my first analisys from learning on BP

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I'm a newbe so take this with a grain of salt. It seems to me that your rehab cost is way too

Much for this type of property and that's killing the cash on cash return and flow.

Experts correct me if I'm wrong please

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Originally posted by @Ned Carey:

Welcome to BP @Nick Stoddard A good investor doesn't swing hammers. He pays others to do it for him.

Touché Ned!

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Originally posted by @Don DeMarco:

Nick,

Welcome to BP, you are right this is a great community and you can learn a lot from some of the professionals here. If you want to buy and hold as a strategy you may want to check out the note business. I buy non-performing notes, modify them and sell them to Investors with a 10%-15% cash on cash ROI. I don't need to deal with the tenants and all the problems of being a Landlord. If interested give me a call or check out my web site.

To your success

That sounds interesting Don, I've read a little about notes and I'd like to learn more.

I do like the idea of paid off cash flowing property's that I turn over to a property mgr in the retirement years.

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Originally posted by @Andrew Bosworth:

@Nick Stoddard

How are you purchasing properties - under an LLC or your own name?

I would be purchasing in my own name although I do have an llc for my other business.

Many on her suggest it's better to purchase in your name if you want financing.

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Originally posted by @Andrew Bosworth:

I would recommend $1M. Considering the added protection you get for a relatively low cost, it pays to have adequate insurance. Lower coverage saves you a few bucks today, while higher limits pay you tomorrow.

I have a $1m personal umbrella, would that be sufficient for a new investor for rentals?

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Hey BP members,

I've been reading for a couple of weeks an wow what a great community!

I'm new to investing although I have updated and sold a few personal homes.

I've lived in the Kc metro all my life and it seems like there is a pretty good demand for rentals. Buy and hold for retirement is my strategy. I have a good deal of experience with the area from home improvement sales and financing. Just haven't swung to many hammers LOL! But I am capable. I'm looking for contractors and lenders and to network with other investors in the area.

Nick

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Originally posted by @Dawn Anastasi:

Here's a real world example with rounded numbers for simplicity. I partnered with someone who had extra cash laying around. We bought a house for $63,000 cash, which my partner paid $62,000 and I paid $1,000.

I rehabbed the property for $25,000 which I paid $19,000 and he paid $6,000. Then I placed tenants. Then we got a refinance loan. The appraisal came in at $120,000. We got 70% LTV and cashed out $84,000.

We had $88,000 in and got out $84,000. So we only had $4,000 into a $120,000 house. You can't get a down payment that low on a purchase loan! If we had gotten a higher LTV loan we would have gotten more money out than we put in.

Dawn, dont those numbers only work if you and your partner hold the property together? If you have to give your partner say 10% return on their cash, you wouldn't get all your cash back.

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Very nice deal Tim, the IHOP people is a niche I wouldn't have thought about

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All Forum Posts by: Nick Stoddard

Nick Stoddard has started 5 posts and replied 50 times.

Post: First deal analisys

Post: First deal analisys

Post: What do you guys think of this deal?

Post: New to BP

Post: New to BP

Post: Minimum liability coverage on rental units

Post: Minimum liability coverage on rental units

Post: New to BP

Post: BRRRR Strategy - I don't get it.. what am I missing?

Post: Flog me or praise me: I'm interested in your feedback