All Forum Posts by: Paul Camuto

People say you make the money when you buy it but honestly you make the money when the title company writes you the check at closing! It all depends on your situation. How long do you want to hold? Can you hold that long without making a return on your money? Kevin O'Leary on Shark Tank says it best "Cash Flow". There are so many variables to your question and your own personal circumstances. The key in real estate is to get in and just get started.

Did you look at other property types other then multi-families? I agree with the offer comment. Get as many offers out for the price that will work for you. I also agree to extend your search area. Even to another surrounding county. It can be the difference that makes the #'s work.

For you the seller it might make sense if it is less then the credit : ) For the buyer or anyone else they are garbage. You have to go thru loopholes to get something approved and it takes time to get the work done.

You have a denial letter. In any standard contract deal is off the table. I will message you with an attorney that helped me do the same. The other lesson here in reading your thread is to talk to the tenants as much as possible up-front before going out of pocket with inspections and the like.

Is hard money even needed? There was no clear outline of what he was trying to do. There are a lot of small local portfolio lenders that have great financing but without knowing all the details it is "hard" to tell the guy what is right and what isn't.

Thanks Corby for the comments. I feel like I am on the 15 year time horizon. The kids will be out of school in 15 years and I will be looking to retire. There comes a point and time when I will need to transition from the accumulation phase to the pay down phase. That cut over time period is what I am trying to determine. Do I stop 15 years out, 10 years out, 5 years out from retirement. My plan is to not have these units in retirement and sell them.

Hi, I have been going at the rental game for a while accumulating 15 individual units 1x1. I want to branch into a multi-family unit. It seems that all the multi-family units I look at have lower cap rates and lower cash flow amounts then I could find individually. Here are the #'s:

The broker says they want 8-9M for the 16 units. The total expenses with mortgage, insurance, maintenance, taxes, .etc are at $47K a month. I included the cost of the debt coverage for the down payment which I would have to pay interest on the line I would use for the funds. The current income the building is producing is at $44K. It is a negative cash flow on paper. The cap rate is at about 5.5%. They have a management expense listed at $1K a month which I could self manage. Even if I raised rents and all went well with no maintenance expense I would be breaking even at best.

Is this an appreciation play? It is tough to value if the $8M ask is comparable to anything else. How would you guys go about this?

I own 15 individual units and most have a line of credit. I have been using the lines for the down payment on any new properties I purchase. The lines are variable at 5 to 6%. To service the debt on the lines to buy another unit it lowers my cash flow projections down to $100 a month or $1200 a year for any new unit. That doesn't include any maintenance expense. 

Is it worth it?

Should I continue to buy more units individually or pay down the lines "making" the 5 to 6% guaranteed?

Hi, I have a track record of 15 investment properties that I own and manage. I am looking to continue to acquire more. These are individual condos in central jersey up to 150K. I have a portfolio lender that does 80% LTV and I typically put down the 20% of 30-40K with closing costs. The investment properties cash flow 300-400 a month. Are their private investment companies that would cover the 20% down? What would the terms be? I am trying to get to 0 funds out of my own pocket.

I currently personally own and manage 15 investment condos. I have purchased each unit 1 at a time using a portfolio lender and line of credit funds for the 20% down. These properties have been in central NJ for about 150K. Each property typically has a cash flow of 300 a month or more. Outside of continuing the process of using my own 30-40K down @ 5-6% are there any other alternatives to acquiring the properties without the outlay of cash on my own? What would a syndication company look for in terms of return?