All Forum Posts by: Paul Gilo

Appreciate the info @Ian Ippolito

I will have to do my own DD on them, but this is certainly a good start. Thank you for sharing the info. 

consider what you would do if you dont have a paying tenant in there. will you be able to cover the time its not leased?

Thanks @Ian Ippolito

I'm a noob. Not accredited. Is there a website I can look at or specific phrase I can google? What is the expected ROI on deals like this? Thank you.

Thanks guys! 

I have known the borrower personally for about 10 year now. Good honorable guy (but I guess that means nothing in the legal sense of things). The had borrowed 50k form another hml, at a higher rate, and has done renovations to the house, house is probably worth double, if not more than I would be lending. My idea would be to just draw up a doc with the terms and such and both of us sign... but it seems I'm oversimplifying things here...  i think im getting in over my head when you got dodd-frank getting in the mix with penalties and such...   is it possible to perhaps do a personal loan with a lean on his house? Seems like ez money... buy as always got to CYA. Thanks. @John Thedford

I did hear about the crowdfunding site on the bp podcast. They say 8-12%. Do you have experience in this? How did it work out? It sure beats a CD ...  :) @Percy N.

So lets say I have a friend... :) Who is a professional and is pretty happy where he is at and does not really have too much time into landlording and such, but is very much interested in getting into REI and building up a portfolio... but at the same time fears that he may not have time for it.

He was offered to lend his money to a friend at 9% backed by a house the friend lives in. (This friend borrowed at a higher rate and this would be a refi of sorts for him.) So it seems like a win win. Borrower gets lower payment and lender gets to make a little money in form of interest. According to my calculations comes out to roughly 250-300/mo over the 5 first 5 years. This would be calculated as a 30yr mortgage, paid for 5 years and then balloon payment at the end.  

Alternatively... he could take the money and do a 20% down on a rental property. The problem is that is kind of hard to find something that meets the 1% rule in this market and not sure what the potential would be of making 300/mo in cash flow on that, after considering the 50% rule. Also not sure what headaches would be associated with that. 

The loan situation seems like the ez route, but you dont really learn anything. One of the main appeals of getting a property is the learning experience. 

Does 9% annual sound like a good deal? Or does owning a rental property provide a potential of much greater returns. I have seen some folks pull in 20% COC, which is pretty compelling.

Your thoughts please... 
and why... :)

TIA!!!

sounds like we may get our own REIA going here :)

ppl on BP are awesome!

Hey there. As the say, welcome to BP. :)

I'm a software engineer and kind of in the same boat as you. Would love to keep in touch and bounce ideas off each other. Feel free to connect if you would like to do that.  Orlando market is kind of tight, but there are some opps. One actually in winter garden that should cash flow well. Winter garden are. Last i checked its on realtor.com for 88k. block duplex.

come on...  you really need to get to know the market and the area. 

@George Gammon - you are the man! a bit above my head, but thats the great thing about it... room to learn. I like your market analysis and your thinking. there arent many other contributors that think at that level. Will be looking out for your posts in the future. thanks again. :)

i would think the 1% would be quicker.

that think should bring in 2400 in rent each month, then it might be worth looking at.