All Forum Posts by: Samir Shahani

What is the incentive to sell the house after you have already done all the work to have it as a stable buy and hold? 

You can make 100k a year from cash flow indefinitely if you own the right number of homes.  You won't have to exit an excellent property. 

I'd say either BRRRR or Flip. Alone they are both amazing ideas. Together, I'd say you're complicating things. Just my two cents :)

I may be interested.  Please PM me with rates. 

@Austin Fruechting  I love your story and my wife and I have decided several months ago that we would follow the same path.  Since then we have bought a couple buy and hold houses.  I have 100x questions for you:

How did you handle the student loans? Did you buy a ton of houses then just crush the debt after? Or did you focus on that first? How would you suggest another investor handle that?

Were you and your wife making very strong income in your jobs that you were able to save a ton and use it for down payment? When did you really feel the compounding effect? How many houses did you own yr 1 , yr 2, yr 3. etc..

It sounds like it took you 7 years? Can you map out a plan (for me ;) ) that you (or anyone) could do it faster? Could you recreate your result or do you feel like you got lucky - sounds like you were proactive to find the nail in the coffin deal, but other than that?

What type of equity do you have in your places? Do you OWN them or are you still financing?  If financing, do you feel there is a strong risk retiring with potential liabilities of that magnitude?

How much money in "reserves" do you feel comfortable with? I've heard SO many rules of thumbs, I'd be curious to know what you use.

Thank you for all the insight :) 

Is it $1000/month for each? If so, total gross monthly rent = $3,000?

Above is a very rough idea, was I close to yours? 

Someone may want to correct me:

If its a "wrap" then you pay the seller.

If its a "take-over" then you pay the bank. 

I agree 100%.  

You should probably start to look at one of two things:

1) Sell the property for 100k profit!

2) Fix the place, raise the rents

My experience has been there are two types of private investor deals:

1) Debt - the private investor loans you $32k at a fixed (or variable) interest rate for a specific period of time.  You can use a promissory note.  A Google search should work for this.

2) Equity - the private investor gives you $32k in exchange for x% of the property's value + income.  You bring "Sweat Equity" to the table.  

Hypothetical: the investor puts up 100% of the down payment money in exchange for 80% equity. You receive 20% equity (property value + monthly income) for doing all the work associated with the property. 

If you have someone in mind, you can discuss the potential mechanics with a real estate attorney.  A decent RE attorney should be able to structure the debt or equity partnership.

Not to mention, there are 100's of posts / blogs / information about this topic on BP!!!

If it were me, I would wait until the property is yours, then fire the management company.  The anecdotes you gave of them talking about people and fixing things is enough for me to be done with them.  You can probably find a very good property manager with little-to-no effort.  Try Google :)

A good property manager will make ALL the difference in your investment success.

You have so many options:

1) Get a job and save the money

2) Find a private investor

3) Find a bank that does a 80% LTV financing on appraised values (the home will have to be worth more than the asking price for this one to work).

4) Negotiate

5) Seller financing

I'm so sure that there are 100 additional options for you.  However, I think these are the easiest^