All Forum Posts by: Powell Chee

@John Santos  Thank you kindly.  Send me a pm and I'll send you my lender's info.  The product I used with them is called a delayed finance or delayed refi.  It has to be completed within 90 days of the purchase.  Sounds like something you might be interested in.

@Andrew Johnson @Dan Krupa @Cliff Harrison Thank you all for your posts.  As you probably noted, the original post was over a year ago.  At the time I was deciding how much to refi out based on a conservative projection of my numbers.  

Without getting too deep into the numbers, I decided to refi out as much equity as I could and likely lower my month cashflow. In essence I kept about $8000 of my own cash in the deal and now cashflow about $200/month (I get higher rent than my conservative projections). I'm at 70% LTV since my loan is about $86,000 and the house is valued at $123,000 and I would say the house is in a solid B+ neighborhood. For me, I'm happy with the results and am looking to repeat the process.

@Patrick Squires Sounds like you have some good options in front of you but that it's just a matter of how you'd like to finance it.  Whatever way you choose, I'd suggest just make sure you can repeat it later.  That way you can continue to grow.  

I'm under contract right now for a house in Memphis which I think will be very similar to the one I did above which is in Kansas City.  

Let me know how your decision turns out.

@Patrick Squires I went with the refi of 70% of $123,000, which meant my cashflow was going to be low but I'd have less cash in the deal.  Luckily my projections were conservative and my property manager was able to get higher rent than expected so I'm at about $200 in cashflow a month with about $8000 of my cash into the deal.  

What's your situation?

Thanks for reaching out Ivan.  I will be reaching out to you.  

Thank you @David Erjavec.  I went to his website and it looks like he specializes in SFRs, but I'll reach out to him.

Hello All,

I am looking for a property management recommendation for a 40 unit property in Indianapolis.  If anyone has a good recommendation please let me know.  

Thank you.

When evaluating a potential building is laundry/vending income something you add into the overall income to get the NOI? Or do you just go by the rents?

@Manolo D. Thanks for the reply.  What's your experience been with this type of structure?  How long do you hold it before refinancing or paying off your investors.

@Aaron Mazzrillo Thanks for the reply but you aren't addressing the topic.  It's about OPM structure not about how your deals are better than mine.

Hello BP,

I live in Los Angeles and own 1 property in Kansas City, which I purchased last year.  It's going well so far and I plan to purchase more out of state rentals.  However after a few more properties, I soon will run out of my own cash.  While talking with others about what I do and why, I have been able to generate a good amount of interest in others partnering with me.  

My question is what structure do you suggest I use for the OPM that I raise for out of state SFRs?  Joint venture where both the OPM and I are co-owners, and we share in the profits? A lender-borrower structure where I borrow their money and pay them a certain rate of return?  Something else?

My goal would be to own as many of the properties as possible, whether by owning it right away or by refinancing it after about 3 years and paying off the investor.

Any thoughts or suggestions?