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All Forum Posts by: Robert J.

Robert J. has started 16 posts and replied 97 times.

Post: Buy and Hold Property 1 - 4 Unit Property / First Investment

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

@Matthias Smith

Andy has good advice.

1) rent roll and copy of the leases are standard in commercial usually provided prior to offer. For 2-4 units seller may not be that “sophisticated “ and wonder why you’re asking.

2) 2-4 units are valued as comparable in terms of size use and condition like single family homes. When you get above 5 units cap rate and income will be your leading indicators with location.

4) if you’re buying off the mls absolutely use an agent. If you aren’t you may be required to pay their commissions and not the seller (unless you can work that out).

Post: Is $50K in 90 Days Worth It?

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

@David West

I would assume 8-10% fees

5-6% broker fees (unless selling yourself then 2-3%)

2-3% title/closing/escrow

That 50k becomes 20k worst case 32k best case. Of that assume you have to hold 40-50% for taxes. Of course a good cpa will help you keep more.

Other than that I can’t think of anything.

Post: Does debt affect my HELOC?

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

I guess i have a petty easy questions i just haven't found an answer. I've browsed a few of the forum posts about "Pay down debt or invest" and haven't seen one that answered my questions so i figured id ask. 

I bought my home almost 5 years ago now and the recent comps in the area would put me at roughly 100k in equity. I wanted to pull out a 95% or 100% LTV HELOC but i also have about 25k in debt. (School, home improvements, etc...) and was wondering if it would look better pay off debt before applying because of dti or am i over thinking it? I have a 770-790 credit score, bring in roughly 70k a year through my job and also part of the national guard. My wife also works full time. Should i just stop stressing and go apply for the heloc so i can start investing now or should i actually wait and pay down my debt because i most likely wont get approved for a 95 or 100% heloc?

Post: (3) 4plex - how to come up w/ 25% down??

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

Why not have 12 people help give you the down payment? That's essentially what you're going to do with online crowd funding. If it's a value add opportunity you can refinance them out if you get the value up. You can ask the seller to carry the 25% down payment. If they're just gonna cash out offer them 5% on their money for a year. See if they'll carry the whole price? Or just a good ol cash out refi of your other properties if there is enough equity? 

Post: Oregon Rehabbers and Newbie Trackers

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

@Say Teoh Haha! Maybe? I'd really like to dominate one market at a time. I'm always open to partnership ideas for multi-family though. 

Post: Oregon Rehabbers and Newbie Trackers

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

Hi Guys this post is kind of two fold: Eugene and Springfield Oregon Area 

1) Does anyone have a good tracker for Direct Mail campaigns? Direct Mail amount, phone calls, appointments, offers, sales - kind of thing.

2) Are there any rehabbers that are looking to generate more leads but might be to busy running a project and working a full-time job? Well i'd like to partner with a rehabber that wants to split my marketing costs with me to increase lead generation and get first priority on all qualified leads. Basically i'm an new agent/wholesaler (and i still work a full-time job but i'm very flexible) already and generating leads by sending mailers, driving for dollars, calling owners and this is getting a small amount of people calling me. I know real estate is a numbers game so i'm hoping to find a rehabber who wants to help increase my marketing budget so i can do MORE of all of this. What i offer in return is qualifying all the leads (being the guy that answers the phone), discovering motivation, meeting with potential sellers, doing all the leg work to comp the properties,  and make sure WE have a great deal in front of us. My "job" is also in the trades so i'm able to eliminate a lot of costs by the sweat equity i can put in to the home from painting, flooring, plumbing, minor electrical, drywall and such. If this sounds like we might be a good fit i'm really looking to ramp up business and bring massive value to someone.

Post: Yellow Letter Marketing for Apartments

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

Most apt owners are professionals. Call them. Then send a follow up letter or a thank you letter. If it's an LLC don't need to worry about DNC

Post: Direct Mail to Apartment Owners

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

I worked commercial real estate as a broker for a while. DM has two sides. These owners are professionals and so they don't really care a lot about the personal connection a yellow letter offers to be able to talk business. I would say if you can talk to them and get them on the phone they'll let you know if there is an immediate need and they all have their price. If there is an immediate need and you want a shot at it though, you'll have to be their guy/girl. So i would follow that up with something like a postcard or a thank you letter or small gift and that will set you apart. They don't get treated like people often and instead of thinking about their units think about providing a solution to their need.

I say call because i believe if they are under an LLC they aren't protected by the DNC like a single family owner because it's a "business"

Post: Cannabis glut in the Portland market

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69
There will always be a demand for the flower and plant but I do think there is a lot of competition in the area. Oils will definitely be a key product especially with all the vape pens and ecigs where you don’t need a giant setup to be able to have stronger concentrates. Think that still bodes well for the warehouse sector though because you’ll have to manufacture it somehow and at scale you’ll need bigger machines

Post: How would you structure this?

Robert J.Posted
  • Rental Property Investor
  • Eugene/ Springfield, OR
  • Posts 99
  • Votes 69

Hi guys!

So i've been actively prospecting while trying to find wholesale/ flips and I found a seller today who owns a duplex he said he's trying to eventually wash his hands of. He mentioned that he's concerned about the amount of taxes he'll pay if he sells it and his reason for selling is to pay off his sons student loan debt. I brought up the idea of seller financing because he owns it outright and I was curious how you more seasoned investors would pitch it to him (and i have none of my own money to put into it) so it works out for him with taxes and with me getting into the property. It's rented out and the rents are below market one side is 950 the other is 825. Market rents for the area being a college town are 1150 each side (Conservatively) and it needs a new roof and some touch up curbside.

My Initial thought would be: For him to carry 50% of the $200,000 offer price and have it be interest only for 3 years at 5% and to finance the other 50% through the bank. This way he gets some money upfront to pay off debts and earns a little more than the property should sell for based on condition. It also allows me to cash flow a little bit right away to save up for the eventual repairs. 

Also open to partnering ideas because i know a few investors looking to pick up duplexes and how you would structure a partnership.

(ARV on duplexes with market rents are typically 250-275 for older builds but have seen some sell at 300k)

Thanks!