All Forum Posts by: Paul Shannon

I use Buildium for my rentals and have been happy with it.  Its pretty much a one-stop-shop.  Robust accounting report generation, banking, tenant screening, links to all the major syndicates for posting listings (ie. Zillow, Trulia, etc....I think something like 25 sites), electronic leases.  It also partners with companies that link back to the software for electronic payment, showings coordination.  There is a resident portal where tenants can put in maintenance requests, etc.  Keeps track of vendors and and makes 1099 issuing at tax time easy.  Its pretty good.  Been using it for a year and really no complaints.  

I've also heard Appfolio is really solid.  

First off, congrats on getting off to a great start.  I second the advice of @Remi Oguntoye.  As specially the point of finding a mentor.  Find someone that is where you want to be in 10 years and see how you can add-value for them.  Even if you can contribute only a little, people are good and want to help other people.  

I'd also become an absolute savage with saving as much as you possibly can from your primary income source.  Track your spending and see where you can cut the fat out of your budget.  Invest that money instead.  You'll have a lot more to through at the next opportunity that comes your way.  

I wouldn't say you are a newbie, having the experience you already have.  Think about how to scale your value and connect with local people that have skills that you don't already have.  

I've done a few cash-out refis with Lima One and my understanding is they have put a temporary hold on underwriting any new loans in that category.  I'll have a need in a few months.  If anyone has fresh info on cash-out refis for Lima One, Visio, Corevest, Lending One, please update.  

I've done a number of cash-out refis and there is no tax liability for refinancing.  However, as mentioned by a few others, lender underwriting guidelines have changed, and continue to change quickly as the pandemic situation evolves.  My primary go-to lender for cash-out refis put a hold on lending for the time being.  I'd call around to see where things are with your contacts. 

I'd check out the websites of a couple of the contributors on the BP Blog..... 

www.coachcarson.com   

www.sparkrental.com 

Chad and Brian provide a lot of valuable lessons and practical advice on real estate and financial independence.

Well said @Daniel McNulty.  The hunt for yield is not new, but it’s becoming even more difficult to find it, forcing investors into riskier asset classes.  With the relative stability of real estate (in certain markets) and rental income providing double to triple what treasuries pay, I can see real estate taking an increasing weight in portfolios to fill the void.  

Should clarify....it’s probably a hard money lender that would lend on this, as opposed to private money.  Interest rate will be high, but with the short term if the deal pencils out, it’s still with it.  

An no you would not need to bring all cash.  You’d likely need some money down so the hard money lender has you with skin in the game, but it will be lower than a conventional loan down payment.  Varies by lender on requirements. 

Not that it's not possible, but very unlikely. Conventional lenders aren't going to lend on a property that would have the value-add potential that a BRRRR candidate property would have, because its going to be in bad shape.

You'd be better off finding private money or a bridge/construction loan, if not cash.  High interest rates with short-terms are the norm.  Then you can refi when the property has been completed with a conventional lender.   

Hi Marty, I'm out of Indy and invest in Evansville primarily. Same strategy....buy distressed, basically BRRRR to force appreciation and cash-out. Talking gross monthly income, I think you can hit your target of $10K a month at about 15-20 properties. Somewhere in that range. Depends on class of property and a lot of other factors, but that is realistic.

You can typically carry up to 10 loans under your personal name.  If you are married, you could have 10 and your wife could have 10.  This is of course dependent on income, debt carried, reserves, etc.  

Traditional banks won't lend to you on a residential mortgage in the name of your LLC, but there are lenders out there that will......Viso, Corevest, Lima One to name a few. Higher rates, but no limit to amount of mortgages you can carry.

Other way around this is to get a commercial loan.  If you have the cash, wait till you want to cash-out refi 5 houses, for example, and put them under a commercial loan.  Downside to this is adjustable rates with balloon payments on shorter terms.  

Always an opportunity cost.  

Amid Covid-19, a lot of lenders have stopped doing cash-out refis, so I would check with your banks before getting too far.