All Forum Posts by: Scott Winter

@Jimmy Johnson

Lots of good advice on this thread.

I didn’t look at your numbers because if you have them, I believe you are already ahead of the curve. I think the most important thing you can do now is to pick one and commit to it.

There is no perfect market, so select one that makes you most happy or comfortable. Or just draw the city out of a hat??

While everyone else is still analyzing their deals, you could have a house in each city on your list!

@Jobee Vincent Buenaventura

As you did, add all your expenses and see how much you'll get back after $600k ARV @ 75% means you could get $450k cash out on assumed 75% refi.

Your costs:

$300k acquisition + $10k closing costs + $125k rehab + $21k int only payments + $5k refinance(?) = $460k

With these specific assumptions, you may have to leave $10k in this deal, but overall a solid opportunity to acquire a $600k house for $10k!

Just validate these assumptions with a few HMLs and some lenders/banks who you might refi with.

Nice find, and good luck!

I just broke out of that phase in November! I now have 5 properties in process—4 flips and 1 triplex BRRRR.

Although I educated like crazy and was building the connections necessary to start, I didn’t “go” for a long time. My catalyst was finally connecting with a couple others who were also looking to get started. We have been able to motivate each other, share each of our own knowledge and expertise, and pool our money.

Everyone will need their own catalyst. I hope this idea may help some people take that next step!

@Adam Beaver

I did both.

Used HELOC and HML to leverage the purchase.

HML gives 90% of purchase price and 100% of rehab.

Lowers your exposure from using your own money from HELOC.

I have LLC with 1/3 ownership between partners. I think we've asked if we can bypass credit being pulled on all partners. HML said an alternative is to change operating agreement to show >80% equity by primary borrower.

To me, running credit on all the partners is the obvious solution before changing the operating agreement. Now I’m curious though, is running credit and background on all partners, even if they aren’t bringing money to the deal a common practice with HMLs?

Any insight would be appreciated.

“So Bob will be the only one signing. So we need to adjust the operation agreement to reflect only listing as the majority share.

Bob please send us the op agreement reflecting you are majority share 80% or more. So we do not need to run credit and back ground for everyone else.”

We have resolutions authorizing Bob as a signer.

We have provided entities and tax IDs for companies holding the interest of our shared LLC. The lender has SSN of Bob, the primary signer, who is bringing money for the deal.

@Greg Scott @Paul Moore thank you both for the input! 

I hope to build to an accredited investor with $1m net worth.  

Does anyone know how accreditation calculations value both residential and commercial real estate?  How would I calculate the value of equity of my investment in a syndication?

Thanks for any insight!

@Daniel Paul Goodman you can search Airbnb. They have a "shipping container" filter for your search—that might tell you something about the popularity. In my experience, people are always looking for the cool, new places to stay. If that is your audience, I think it is great that you will be able to leverage your welding skills and get into the STR market in this way!

If you really want to test this before you are comfortable, set up an account and fill it with fake pictures and a low price like $15/night (you just want views). See how much interest you get. You don’t have to be shady about it, just tell people what you are doing and ask them to add you as a favorite if they would be interested. Then they can be the first to know when you’re ready to open your reservation dates.

@Omni Casey thanks for sharing!

@Kim Chong

First, $200k! Well done on the income stream!

Regarding rent control, the best way to allay your concerns are to get educated and take action to hedge risk, so kudos to you for asking the question!

I really have no idea the answer to your question, but am fascinated with your question and what insight you might get from others. This seems like a completely personal preference to me.

Do you have a goal for buying rental property?

You seem set on acquiring and owning properties you control and also want passive investments. Are you familiar with real estate syndications? It can be more passive than buy and hold real estate, and I think it includes all the benefits of real estate investing (cash flow, appreciation, tax benefits(?), and equity pay down). There are so many options with all sorts of investing strategies. I’m sure some folks on BP can point you in the right direction to finding a good group. And, others know way more than I do about syndications.