All Forum Posts by: Paul Beets

I’m not a pro but I could probably help!    Please send me a PM.

Just spoke to them today.   Intriging idea because the part about flipping I absolutely hate is real estate agents, and retail buyers and the waiting game.

These guys will buy them hands down.    I love it.

I think I'm going to do one deal and see how it goes.

@Jessica Dean - That is awesome.    I guess I always assume people are BRRRRing.    If that is the case and that property is cashflowing then it is time to go get another!   lol.   Be aware if you are financing these properties with Fannie/Freddie loans you might run into some debt-to-income issues by scaling too quickly.

Let me know if there is anything I can do to help.

Cheers!

@Michael Margarella - an Indy investor over in your neck of the woods!   

Congrats on your purchase Jessica!      Could you PM me the address who you are buying it from etc.?     

I would definitely hold off on buying the second until you have this one stablized and cashflowing.     Once you figure out all of your systems and your "team" on the ground ... then you can start tackling multiple at once.

Cheers!

Paul

To each their own. 

I have been wildly successful using my formula above which has yield a large robust portfolio that is cash flowing more than $7000 /mo with little to none of my own money.   

I am most focused on percentages. Specifically %ROI. I think people are wasting their money if they are not considering the % return on their investment and are instead just focusing on the $$$$$.

@James B. - so a few things on how I underwrite my deals.

#1 - The 1% rule.   Doesn't meet it at all.   $995/mo rent I wouldn't purchase for anything more than $99,500

#2 - 12 cap. I don't buy anything that isn't a 12 cap. $995 * 12 * .6 = $7164/year NOI. 12 cap would be $59,700 purchase price so the 12 cap is a "no-go" as well.

#3 - "All-in" for 75% of ARV. From what I can tell on the numbers you gave me you would be "all-in" at $134,800. That is 75% of an ARV around $180K. You didn't mention what the ARV would look like. But I'd make sure it would appraise for at least $180K once all is said and done. If not? I'd walk.

#4 - Cashflow at least $200/mo+ with debt service. I have the monthly NOI at around $591/mo. So whatever debt service you would end up with after a cash-out refi ... I would make sure you aren't paying Principal & Interest more than $391/mo. IF you end up being able to cash out your "all-in" at $134,800 ... then the payment principal and interest would be $730.26. So it would not cashflow anywhere near $200/mo.

Overall ... I'd say I'm a big "NO" on this deal.

Those are my thoughts.

Paul

@Adam Baugh Please shoot me a message I'd be glad to help out.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,000
Cash invested: $19,571

Purchased: Nov 1, 2019
Indianapolis, IN 46208
Purchase Price: $10,000 sub2 two liens
Closing Costs: $1037
Repairs/Utilities/Legal: $19,571
Total Project Cost: $30,608 (paid)

Refinance: April 2, 2021
Appraisal: $60,000
Loan Amt: $39,470 (66% loan-to-value)
Loan Fees: $1961
Loan Rate & Term: 4% for 25 years

Total Cost per mo: $524.88
Rent for $799/month
CASHFLOW: $274/mo ( $3288/yr on $ZERO invested = Infinite ROI )

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

Psht .. pick up a house in pretty good condition for only $10,000 ??? Who wouldn't?

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

Wholesaler posted it on Facebook!

How did you finance this deal?

CASH from my Home-Equity-Line-Of-Credit

https://replaceyourmortgage.com/idevaffiliate/idevaffiliate.php?id=112

How did you add value to the deal?

Cosmetic repairs and little bit of flooring.

What was the outcome?

$ZERO dollars left in the deal. $6901 paid by the bank to me to own the property.

Lessons learned? Challenges?

Don't be afraid of a subject-to deal with AWOL lien holders for only $10,000. Quiet title and it is yours.

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

Great Real Estate Attorney in Indianapolis that helped me with the Quiet Title. Send me a message.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $10,000
Cash invested: $19,571

Purchased: Nov 1, 2019
Indianapolis, IN 46208
Purchase Price: $10,000 sub2 two liens
Closing Costs: $1037
Repairs/Utilities/Legal: $19,571
Total Project Cost: $30,608 (paid)

Refinance: April 2, 2021
Appraisal: $60,000
Loan Amt: $39,470 (66% loan-to-value)
Loan Fees: $1961
Loan Rate & Term: 4% for 25 years

Monthly Payment: $208.34
Remaining expenses: $316.54
Total Cost per mo: $524.88
Rent for $799/month
CASHFLOW: $274/mo ( $3288/yr on $ZERO invested = Infinite ROI )

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

Psht .. pick up a house in pretty good condition for only $10,000 ??? Who wouldn't?

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

Wholesaler posted it on Facebook!

How did you finance this deal?

CASH from my Home-Equity-Line-Of-Credit

https://replaceyourmortgage.com/idevaffiliate/idevaffiliate.php?id=112

How did you add value to the deal?

Cosmetic repairs and little bit of flooring.

What was the outcome?

$ZERO dollars left in the deal. $6901 paid by the bank to me to own the property.

Lessons learned? Challenges?

Don't be afraid of a subject-to deal with AWOL lien holders for only $10,000. Quiet title and it is yours.

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

Great Real Estate Attorney in Indianapolis that helped me with the Quiet Title. Send me a message.