All Forum Posts by: Rami Khaldi

Hey there,

I'm interested in utilizing private money lending for financing while I save up to use my own capital along with Hard Money Lending. Im curious about how the successful private money lenders have established terms that have been win-win for you and your lenders. I'd like to put together professional proposals but don't know enough here. I've heard of:

1) Flat % returns for each month

2) Equity in the deal in case investor can't cover monthly payments to investor

3) Lump sum return after project completion based on agreed % of money lent

Anyone have some thoughts here? Specific term structures would be great. If it helps, I live in Philly and am thinking about B Class areas- SFH & MF properties.

Hey there,

I’m an active investor looking to expand my network in suburban PA and South Jersey. Looking for wholesalers that are proven and operate in these regions. Candidly, not looking for larger Wholesalers like New Western. Want to work with individuals that I can build longer term relationships with. I have a network of investors and contractors that I’m working with to execute Fix & Flips with.

Buy Box:

- Purchase price: Up to $150k

- SFH or MF properties

- Delivered vacant

- More focus on cosmetic rehabs, BUT open to dilapidated properties with capex expenses

- Meets 70% investment rule. When sharing comps, we want to see multiple accurate comps that were sold within past 6 months. Will consider contingent and pending properties as valid comps if they sell.

We’re serious about working with experienced wholesalers. Happy to discuss further. Reach out and let’s connect! Thank you.

Quote from @Gaetano Ciambriello:

Quote from @Rami Khaldi:

Hey Joey, my friend @Alan Asriants organizes small REI meetups in the Philly/South Jersey area. I've met some great people through Alan.

Happy to connect with you as well if you'd like to grab coffee!

 @Rami Khaldi no love for your paisan?!

#1 paisan in my book, of course! Cigars soon my friend. Congrats on the new place, lets catch up soon

Is anyone underway in a BRRRR that wouldn't mind walking me through the process so far as an RE Investor? I'm in the process of selling my first project and have some down time. Looking to soak up some knowledge in the meantime. Let me know if a call or in-person works!

Hey Joey, my friend @Alan Asriants organizes small REI meetups in the Philly/South Jersey area. I've met some great people through Alan.

Happy to connect with you as well if you'd like to grab coffee!

Hi All,

Would love to connect with investors and GCs in the Philly/South Jersey area. I am wrapping up my first project (currently listed) and hoping to build up by doing some flips as a starting point with some people i've met via the BP community. Beyond that, i'd like to switch over to more buy & holds rather than purely fix & flips.

 Would love to continue expanding my network and meet in person with other investors/GCs nearby. We can trade stories, talk about short/long term goals, and discuss potential opportunities to work together down the road. Coffee on me!

Quote from @Bonnie Low:

Thanks for sharing. It's good to be open because we so often tout the successes and then people struggle and feel like they're the only ones when, in reality, most of us have struggled in one way or another. You're spot on that you need to walk a property yourself, especially when you're new and don't have a reliable team established. I can't stress this enough. You cannot trust your Realtor to know what to look for. The contractor should've been able to at least point out the problem with the roof, but it's not all that surprising that he/she didn't. They tend to look for the things they would fix and if they're not a roofing contractor, it might've been overlooked (although this really is a head scratcher to me because it's pretty standard.) The other thing you should do - and I know this is controversial - is hire an inspector. We do this every time and it has saved us countless times. For the $500 or so it costs to do an inspection, we've been able to walk away from places we've had in contract that would've cost us tens of thousands or more to fix when some really big fatal flaws were overlooked by our very well meaning Realtors. 

Sounds like overall you had a successful first project in that you're going to come out ok and sure learned a lot. Congratulations to you and keep going!

Great call out! I was thinking too cheaply honestly. BUT my agent convinced me to do exactly that and I owe him for hammering that advice. Will make it a standard practice on all future projects as well!

Thanks for the kind words and feedback!

Quote from @Travis Timmons:

You should have just gotten your core 4 and bought in Columbus. It's that easy. Did you know that Intel is coming there?

Maybe that's a low blow, but you get the point. It's really hard to take on a BRRRR or flip project, and you don't fully know what you have until you already own it. Without the ability to do work yourself, have labor at cost (if you are a contractor - for example), or have market appreciation help you in the renovation period, a full BRRRR or healthy margin flip for a new investor is really difficult.

Thanks for sharing. You got your first rep. Learning is more important than making money. The realistic, real world goal on the first one should be to educate yourself and not lose money. If you did those two things and haven't lost enthusiasm, it's a great deal.

Hindsight is 20/20. Yes, Columbus is on my radar for some multifamily opportunities that have some appreciation opportunity as well with Intel building that facility.

I know an agent out there that has sent some deals. When I’m able to, I’ll definitely be pursuing one.
 

Hey guys, I wanted to take a moment and share my very candid experience on the first ever REI project (Listed today) I've had as an investor. Im 28 years old and my interest started about a year ago where I seriously began looking for my first ever BRRRR deal. I think this will be most valuable for the newcomers. Here's the story.

I bought a wholesale deal off the MLS for $109K. Negotiated down a little. 4 beds, 1.5 bath. I happened to be away for a wedding out of state, so i had my Agent and Contractor walk through it together. Figured that sufficed. They both signed off on it. That's mistake #1. Will explain later.

Mistake #2, I thought I could pay my contractor after each phase of work. NO! I learned the hard way that you pay upfront for each phase. So.. I had to put money on a personal credit card and I had to open a business credit card to cover. Using hard money, I kept putting my draws after each phase back into my pockets to pay off the credit card debt. I was relatively hands off with my contractor. Got updates periodically, no cadence. Would answer him quickly and make decisions for appliances, flooring, paint, etc. But no set communication expectations. That was mistake #3. So what happened?

We ran over schedule, went over budget , I paid additional carrying costs every month, and learned about significant issues later than I should have. Tough pill to swallow. BUT, we move forward. Getting towards the end of the project after I've visited maybe 3-4 times over the 5 months of work, i'm told the roof is an issue and massive liability. I trace this back to Mistake #1. Make sure you cover your grounds for ALL CAPEX PITFALLS. I didnt know the roof HAD to be replaced. I was told it was in good enough condition. That's not my agent or contractor's fault. That's mine. The investor. I should've asked my contractor to get on the roof and check it as well as the appliances, the boiler, the radiators, the windows. All things that cost thousands to replace/install.

Mistake #4- Cutting corners. I found myself in an ironic situation of always aspiring to be a guy that gets into REI with the goal of creating quality. Whether its an LTR, MTR, STR, or fix & flip. I had some cleaning up to do after the inspector assessed it. I didnt provide clear enough guidance to my contractor on every last detail and the expectations of the finishing touches I needed. Molding, vinyl flooring under the radiators (only did around them), paint finishes to stairways, finding quality vanities and cabinets that function perfectly. Things you hope people do for you naturally.. but you can never HOPE. I need to set the precedent. My 5th and final mistake: Not having absolute clarity on wanting to BRRRR it or sell it. My goal is hold for the long term. I wanted to with this one. Numbers didnt make sense. Thats on me. Fingers crossed, I should be OK after selling it and be ready for another opportunity, but we shall see.

Lessons Learned:

1) Fully understanding the financing of the deal and be liquid BEYOND money down/closing costs. You need to pay your contractor. They won't do free work and then pay you after each phase.

2) Make the best effort to walk through a property yourself WITH a keen eye. Check all the CapEx components to the property and have a good contractor with you if possible.

3) Schedule a cadence for communication and updates on the house, even if progress was minimal during any given week.

4) Demand quality and coach your contractor. Dont be that property that's listed with subpar finishes, terrible pictures, or bad staging. Deliver quality and expect quality with your ARV/purchase price.

5) Know what your #1 outcome is and have an exit strategy no matter what.

6) Don't give up. My worst case scenario (again, fingers crossed) is splitting even. Even if I lose some money on this, i've learned an unfathomable amount for living through it. You will only get better. I know I have.

Hope it was worth the read if you got this far. For those out there contemplating jumping in or are still early on in their REI journey. This was my 1st one. I know i'll be better for project #2 because of all the screw ups I had. Cheers.

- RK

Hey there,

I've been on the search for a CPA in the Greater Philadelphia area. Would love to leverage a referral for a CPA that's provided you value and creative ideas that have supported your RE ventures. I'm still new to REI so my tax knowledge is minimal (learning through BP podcast, own research).

Would like to learn more about:

1) 1031 exchanges

2) Reducing income via REI

3) Tax write offs

4) Any creative tax saving strategies that i'm not thinking of, applies to RE Investors.

Let me know! Thank you.