All Forum Posts by: Shane Willis

I have a deal now that is perfect BRRRR and Good Flip. Having tough time making decisions.

I could BRRRR and even with these higher rates clear $250-$300 a month after refi, with pretty much all my capital back out.

Flip would clear 80-90k. Worst case 70K

Probably wholesale and clear 40-50k

I have at least 5 doors (all SFR) in rentals already, as well as some notes (from owner financing), and some crowd funding as a silent partner.

Mortgage rates changing so quickly it changed this deal drastically as I started working on it last Halloween. 

Thoughts???

Have a SFR deal I just acquired. Property picked up with 100% owner financing and very little work done so I am out of pocket maybe $5k total (closing costs plus the minor repairs)

OPTION A.) I can rent now (even with the higher rate the owner charging me) and cashflow about $150 a month. Then refi like a good BRRRR project in 6 months and cashflow goes up to about $500 a month. I would literally have all my money back out.

OPTION B.) I could easily sell this and walk away with 50-60k. 

I don't really need the capital at this time, but just sound boarding off this great group to see what other ideas are out there...... 1031 into multifamily etc...

Those affected by the COVID-19 pandemic can now apply for financial assistance from Escambia County.

The City of Pensacola and Escambia County are participating in the Coronavirus Relief Funds made available by Florida Housing Finance Corporation.

The county says approximately $813,451 will me made available Tuesday Sept. 1 to help eligible applicants with rent, mortgage and/or utility assistance.

The expenses must occur between March 1 through December 30. Maximum assistance will be $3,000 per household and be paid directly to the landlord, mortgage or utility company.

General eligibility requirements include being an Escambia County resident (including City of Pensacola and Town of Century), income adversely impacted by COVID-19, total household income cannot exceed 120% of area median income and only past due rent, mortgage, and utilities qualify.

Escambia County says applications will be accepted starting Tuesday Sept. 1 through Monday Sept. 14 or until funds have been committed.

Applications will be made online at 8 a.m. Tuesday at the myescambia website forward sash cares

Paper applications will be made available at the following locations starting Tuesday for those who do not have internet access:

• Escambia County Neighborhood Enterprise Division, 221 Palafox Place, Suite 200 (Monday through Friday, 8 .m. to 5 p.m.)
• Brownsville Community Center, 3200 W. DeSoto St. (Monday through Friday, 9 a.m. to 5 p.m.)
• West Florida Public Libraries

Completed paper applications with attachments should be emailed to (Escambia Cares tenant and mortgage) @myescambia or dropped off at the Brownsville Community Center or Neighborhood Enterprises

I have been seeing a ton of conversations about stacking to narrow down motivated sellers. ie.... Pre-foreclosure, Equity = 50%, Divorce etc...

What are your best stacks and can anyone give examples of direct mail they used that was successful?

Seems like so many ways to attack I feel like I am analysis paralysis......but don't want to waste 15 campaigns

@Jameson Hooton if your slammed at a biz, then I would just suggest hiring someone to manage. I have plenty of clients that look at REI as just that....Passive investing. Perhaps you build in management into the first 3-6 deals and then re-evaluate if portfolio would look that much better if self managed. Based on not doing it yet you could always use this time to get a real world education on owning rental properties as well.

Just my 2 cents

@Jameson Hooton well after reading some of this my thoughts are this

1.) you have a biz. If you hired a highly competent employee would you give a ton of thought on how much time it saves you or would you just run the biz.

2.) same concept applies in REI

now with that said we all know that you can't always hire in your biz, so the question your really asking (I think) is do you want to be in REI or like a stock portfolio do you just want others to do it for you. Make a little less but time is yours..

Am I wrong in that?

@Chris Mason omg I love the answer and the analogy. Reverse are difficult I did about 15 back when I owned a mortgage company and was never really fond of them. 

Perhaps lending has changed since I sold in 2008 (imagine that the mortgage industry changes after the meltdown) 

Even my underwriters has to put that vacancy factor in. Again maybe it’s just a layer to all the mortgage buyers I was selling to, and this conversation is making me consider that as a real possibility. 

Now forget the lending requirements for a minute (and I know this thread started with a DTI ??) but wouldn't you agree as an investor it's prudent to build in a vacancy factor into projected cash flow of any project?

@Chris Mason Wow that's interesting. I've owned rentals for 16+ years now and always had a 25% vacancy factor counted against my gross rental income for any new purchase or refi. I'm not saying its not an overlay.....it may be. Just always been my norm and the multiple clients I work with.

Also Curious if it is a true schedule E how does any large capital improvements count against if any. 

@Chris Mason So what does the bank use to mitigate that factor of a vacancy.....or worse yet of all the properties going vacant at one time? 

And Ioved the (of course no overlays) comment......FINALLY a place where people get it:) #biggerpockets