All Forum Posts by: Salomon W.

Hello everyone,

I am looking for a lender to provide a second lien on multiple single family rentals, but which is not based on personal income.

Any suggestions?

So, I am an investor in NY (not in the city) and just until now I did some single family investments and some multi family investments. I am now interested in investing with money from friends and family and was wondering what is an acceptable cut to find the deal, find mortage funds, find the management company and make sure that everything runs smooth with the property and rental. We are talking about a hi cash on cash return for a home designated for student housing, probably 20% or more. What is an acceptable syndication percentage rate that I can take for myself for doing all that work and always be responsible for anything that happens to the property? 

Any input is appreciated. No input is superfluous. 

Thank you in advance. 

Salomon

I would like to go into commercial investments and being the the syndicator. More specifically, I am looking into Triple Net Leases investments. What is the appropriate income percentage to be taken for the investment work?

My job as a syndicator would be everything related to the acquiring of the property, collecting the investment funds, getting a mortgage to maximize return and anything else that may come up.

Any advise or direction would be appreciated.

Thank you for all your inputs.  It gives me a better understanding what is acceptable in the flipping market. Thanks again.

@Will Barnard

Thanks for your thoughts Will.

As far as the comps goes, it's around $500k - $580k. Simple because there's not enough properties to easily compare it to, that's why I gave it a worst case scenario of $450k.

Also, the contractor I am using is someone that I have been using for the past 5 years as a property manager for my buy and hold properties and we had two times with more serious fix up needed to make it rentable after tenants left or as a new purchase. I don't count that as rehab experience as I was just minimally involved in the rehab decisions. I just know he is very honest about his work and cost.

The private money investor knows what my experience is and because of the lack of real rehab experience I offered him 50/50.

Also, an important detail is that if for whatever reason more funding is needed, I offered to provide the additional funding without taking away any equity from the private money investor. Everything would be a part of the operating agreement under the LLC.

Thank you Greg for your input.

I guess in the future, once I have more experience on my belt, I can feel comfortable to offer a fixed return on their money as 7% - 10%.

The idea is to either sell it fast or have it refinanced to a 30  year mortgage.

Hello everyone.

I have done many buy & hold properties but have never bought a property for the sake of a flip or a Brrrr.

So, now I am ready to go ahead with my first official purchase that requires significant rehab.

The purchase cost is $290k. I brought over one contractor that I used in the past and the I trust, gave me a rough estimate of $100k for a beautiful rehab. If I want to do a basic rehab sufficient to have it rented, the estimated cost is between $25k and $45k. The closing cost would roughly be $20k. The rehab cost is not fully known as the water and gas were not turned on as the previous tenants were evicted and apparently there's no signs of water damage. Electricity was turned on for one day and it wow fine. The seller claims that the heating and water was working fine when the tenants were evicted. The property is sold as is.

I need about $70k - $80k for the down payment, closing cost and holding cost. The rest would be covered from a local hard money lender. I have a relative willing to put down the money down payment of $80k as a private lender. The ARV is estimated anywhere from $450k to $580k. There's very few houses for sale to get a proper COMPS.

Since, I feel a bit new to rehab, I offered the private lender a 50% equity of the profit.

So my questions to you are:

1) Does the equity partnership make sense?

2) What is your take in this deal in general? I know it's not the best deal with my limited experience, but I need to start somewhere. What's your take on all of it?

@Steven Hershey

Don't forget you can always have the pmi taken away once the property appreciates enough so that you have a 22% equity in the property. No need to refinance, all you have to pay is another appraisal on the house to proof the bank the new value of the house.