All Forum Posts by: Ray Hage

From an investor standpoint it is very tough right now as there are not of a ton of good deals out there. However, people still need to sell and others still need to buy for whatever reason. There is still money to be made but not via a turnkey property. In this market, people are have to be willing to buy a fixer upper (maybe just cosmetic issues) to force appreciation. I am also a realtor and work with investors. It's been tough getting them a good deal as well. The Fed will be lowering rates so that should make investments a bit more attractive.

Agree on all those lol! One thing I have learned is people don't have a problem wasting your time! Sometimes I wish we could charge by the hour lol. 

Another positive is that I would, as realtors, we get to work with who we want. Very few employees of any kind can say this. Being a realtor has also exposed to me to so many smart and interesting people so I fully agree with your positive #4. It's been an amazing ride so far.

Well done on the house hack! You did it to the max! I bought a 3 bedroom house thinking to do the same but decided on spliting out one side of the house, sort of like two separate apts and it worked out great! It's higher than the mortgage.

I would generally stay away from syndications or just put a small amount (vs your total cash) in. You don't have any control and you are 100% passive. Money can be made of course but you may have to wait a long while (3-5 years seems to be normal). You can make money at it of course. 

BRRR is solid but far more active so it depends on a few factors but mainly time, money and effort you're will to put in. I've managed a few renovations and it can be stressful and time consuming dealing with tradesmen and contractors. If you currently work an intense non-flexible W2 job, BRRR might not be for you.

Unfortunately there is a major risk to it if there is a lot of unpermitted work done. They're not necessarily going to look for it but if it is obvious or if they do an inspection, they may find some issues. For example, the house is old so if they see all new PVC plumbing in it and there was not even one permit pulled for that, you can be sure it's an issue.

Here in Hollywood, Florida....I know a guy that purchased a home. The previous owner added some square footage to the house without a permit. The current owner wanted to do some work on the house and inspectors realized that an additional room had been added and he had to deal with it. So I suppose, see if you can find out what permits had been pulled for the work done to your property. Then you got to decide if it is worth the risk to turn it into a STR

 Well that was easy! Unfortunately (or fortunately) south Florida rents have been coming down. I am sure at 4,700, you're still getting a solid cash flow.

I have done quite a few PML deals mainly in Florida. I strongly suggest you have an attorney draw up the contracts (and one has who has already done this many times, as they will already have templates they use).

At the minimum, a lender need a Mortgage but I would also recommend for more protection, a lender will want a JV agreement, promissory, personal guarantee and if possible, to have the deal cross-collateralized with another property. Is it absolutely necessary to have all this? No, but it will be good for the lender. If everything goes to plan, these documents were overkill. If the deal goes poorly, the protection is there.

It's kind of like having car insurance, you don't think about it till the accident but it is better to think about it before hand and be covered if things go poorly.

It has definitely been slowing here in South Florida. Rentals are staying on the market a lot longer. This is mainly due to the large amount of inventory and still high prices (though they are trending downwards).

Sound interesting! but really free? I got to follow this as I am considering selling a property soon

I agree with you. Why bother putting a whole contract together for someone to tell you 900k is too low. However, you could try pushing again with the 900k (cash, DSCR, conventional etc) plus whatever terms/contingencies you want to add. If they agree, then put the real offer together If they say they still want the real offer, then just do it.