All Forum Posts by: Tony Pellettieri

 Sage Advice. We're also considering a portfolio sale. All of these houses were purchased in distressed condition and remodeled extensively. If we could do it once, we can do it again. Might just be time to sell it all to get in a better position and take what we learned along the way to do things differently next time.

 No Doubt, you're right. I believe the saying is the past is not always indicative of the future, right? I don't think it will continue to appreciate at that rate forever or honestly past the next few years but right now where prices are in relation to the median housing price of the surrounding market, the need for affordable housing/rents, etc, many people are continuing to flock to the our investment area which is continuing to push the prices of the properties in Chester up closer to the median housing price of the greater area.

In regards to inflation, I don't think the inherent value has risen only the demand for the product itself. Is a house worth more or does it just take more less valuable dollars to buy the same house. Artificial Inflation of commodities is often caused by the devaluation of the currency used for the exchange.

I look at the ARV when we purchased the property and track/monitor that each quarter. For example. We purchased a house in Dec 2023 for 80K with ARV of 145K, Jan 2025 ARV is 215K

We have two properties for sale on the MLS. Listing 5 more today. Those 5 have tenants in them currently though.

 Hey Andrew, yes just about everything is financed with DSCRs, with the exception of one of our properties.

We are looking to access some of our Equity to access liquid cash. The majority of our properties already have DSCR loans on them, are tenant occupied, have been owned for less than a year/have sizable capital gains, are in a high appreciation market, may take a while to sell at market price on the MLS.

Are there any loan products, even ones with balloon payments, that would let us access some of our equity in our properties through refinance or a 2nd position loan. Of course if we refinance our DSCR loans we will have a 5% PPP which is not a fun pill to swallow but for some properties with a low LTVs, we're open to it.

We need a loan product that is asset based. Credit is 699. 10x Experience Entry/Exits on HUDs. Currently only getting 70% LTV through ROC Capital on our DSCR loans since my credit dropped below a 720.

I've heard that second position DSCRs may be an option?

Would a Bridge Loan with a balloon payment after 12/24 months be possible?

Below are some highlights of our portfolio

1. SFR   Value $155,000   DSCR Payoff $116,250+PPP
2. SFR   Value $140,000   DSCR Payoff $97,500+PPP
3. SFR   Value $255,000   DSCR Payoff $178,500+PPP
4. SFR   Value $170,000   Bridge Payoff $108,200
5. SFR   Value $215,000   DSCR Payoff $150,000+PPP
6. SFR   Value $270,000   DSCR Payoff $178,000+PPP
7. SFR   Value $170,000   DSCR Payoff $94,500+PPP
8. SFR   Value $180,000   DSCR Payoff $126,000+PPP

9/10/11. Multi Family Apartments 2 Separate Buildings 14 Units + Piece of Adjacent Land.
Valuation $1,050,000+   Seller Financed Payoff $721,500+$50,000 PPP

It's been a long 9 months but the time seems right to climb out from the trenches and return to the BP community.

During my first few months as a Real Estate Investor, I was on the forums almost daily. Getting advice on BP helped me overcome many of the hurdles as a new investor while I started BRRRing. I was closing as many deals as I could figure out how to get financed. I also managed to creatively acquire two apartment buildings with $0 down about 4 months ago, one of which currently has a water main Leak under the slab and two of the residents have been without water for over a week, but that's another story for another time... 

In December 2023 I started with...

$25,000 in the Bank
823 credit score
3-5% revolving utilization
very little debt
ZERO experience in anything real estate or construction related
Knowledge acquired from listening to 123 audible books over the previous years

14 months later...

$847 in the bank
699 Credit Score
133% revolving utilization/over the limit maxed out personal credit cards
Quite a bit of other high interest debt/loans borrowed during the first year in business
$3,580,000 Appraised Portfolio Valuation
$2,139,400 DSCR Mortgage Debt in my LLCs
$1,440,600 Equity (Appraised Value-Mortgage debt)
8 Remodeled SFRs
1 Converted Remodeled Duplex
2 SFR Remodels currently in process
2 Apartment Buildings - 13/14 units occupied
A little more experience to say the least
234 Audible books in my library

As I'm sure any experienced investor can gather, having the sizable amount of personal debt as I do, supplier house account payments due, PMLs that need to be paid, etc, not having liquidity/any money in the bank is an ISSUE. I currently have 2 vacant houses I purchased just over a year ago listed for sale on the MLS but no bites as of yet. Not the best time of year and we're in an emerging market area about an hour outside of Charlotte, NC.

30Y DSCR c/o Refi's have already been done on every eligible property after rehab / 3 months seasoning.

As more of our properties come up on 1+ yr of ownership, despite losing likely future appreciation of 25-30%+ annually and paying a 5% PPP, I are open to selling some houses off to start paying off much of the high interest debt accumulated outside of mortgages. 

Are there any asset backed loan products that lend in second position or any other forms of financing able to be collateralized by equity you can think of?

 Would like to find out more..

Our Business has been growing rapidly as we've employed our capital in the acquisition department. Currently we're at 7 doors and nearing the completion of our first $50/sq ft rehab. We have two new construction projects getting ready to break ground, 2 cash out delayed financing loans in process, and almost at the end of our first debt cycle, getting ready to emerge into the next phase of our growth stage. We've decided to scale back on acquisitions and have started scouting out talent to add to our team to be better prepared for what's to come.

While interviewing a potential new company Integrator yesterday, he asked if we had an office space. I told him we did not but the question has had me wondering if the time has come, or is near. We are getting ready to start hiring team members as our business grows and I was wondering if anyone could offer some insight on when the time is to get office space and what possible benefits and downsides deciding to do so has.

Our Business has been growing rapidly as we've employed our capital in the acquisition department. We've decided to scale back on acquisitions and have started scouting out talent to add to our team to be better prepared for what's to come.

While we believe we could greatly benefit from bringing on an Integrator, project manager, and construction manager as soon as possible, we are looking at cost/benefit for our first hire. We are leaning towards bringing on a hard working administrative assistant to lighten the load and free up more time to focus on more pertinent tasks.

Wondering if anyone can give us suggestions on the starting the process of being able to provide/offer health insurance to our employees. We're talking with someone who may be coming into our company's leadership that will require health coverage. This is something we're interested in providing for our company's employees including ourselves. Any insight would be much appreciated.

Our Business has been growing rapidly as we've employed our capital in the acquisition department. Currently we're at 7 doors and nearing the completion of our first $50/sq ft rehab. We have two new construction projects getting ready to break ground, 2 cash out delayed financing loans in process, and almost at the end of our first debt cycle, getting ready to emerge into the next phase of our growth stage. We've decided to scale back on acquisitions and have started scouting out talent to add to our team to be better prepared for what's to come.

While we believe we could greatly benefit from bringing on an Integrator, project manager, and construction manager as soon as possible, we are looking at cost/benefit for our first hire. We are leaning towards bringing on a hard working administrative assistant to lighten the load and free up more time to focus on more pertinent tasks.

This will be our first hire and are wondering what the best way to go about doing so is. Should we 1099? W2? Also wondering if any one can give us suggestions on providing/offering health insurance. We're talking with someone who may be coming into our company's leadership that will require health coverage. This is something we're interested in providing for our company's employees including ourselves. Any insight would be much appreciated.