All Forum Posts by: Shawn Ackerman

@Michael Campbell Not the place for advertising a deal but certainly underwriting.  Let'er Rip!!!!!!!!

@Jeffrey Bourque I'd suggest going HML with and "ARV" of $250K conservatively @65% you are looking at $161K less fees. From there I would go into a rate and term with a DSCR lender. You will be paying double fees nonetheless however you will have the ability to have the fees added into the loans rather than coming out of pocket(Which I'm assuming you are trying to minimize?). Your equity positions seems pretty good and baring any unusual hard/soft costs your cash flow will be solid. And since you mentioned "fast" then HML would probably get it done the quickest.

All the best!

@Jose Martinez if $8500 per month was your cash flow number and you have reached it then it is time to start paying down the debt.  If you'd ask this question while still employed I'd say apply the $8500 toward knocking down the debt quicker but since that is not the case I would build up your reserves to about 6 months then begin applying those funds to bring down the debt.  I'm assuming you are arriving at your cash flow number by applying Gross income - cap ex, maintenance, utilities, vacancy, tax, insurance, mgt, landscape/snow & Debt service?

Congrats on your hard work. Still a bit more work left.  I think all of your attention needs to be applied to paying down debt!

@Keith Angell I'd say you are on the right track with the HELOC. Mainly for it's re-usability and flexibility. Keep in mind of the I/O(payments/period) and game plan on how fast you'd like to pay it down. You've done a great job with keeping your debt low so I have no concerns about your level of discipline to use/reuse a line of credit.

All the best!

@Rory Darcy Welcome to BP.  As a fellow New Yorker I understand the need to look outside of NY.  We are based on Long Island but invest in Milwaukee WI.  Let's connect1

All the best!

Hi @Veronique Leroy WOW!!!! Very aggressive, but doable! 

Congrats@Ghita Mueller This seems like an exciting project.  However I am trying to wrap my head around the mortgage payment of $1700 per month??? and how you  reached a cash flow number of $500 per month? 

Was the price $110 and you put another $110 into it as it was a gut rehab.

@Enrique Toledo-Perez As a realtor are you not allowed to open a wholesaling business?  I mean realtors do the same things. Look for motivated sellers off market and market via cold calling and or direct mail, geofencing, advertising and the like.

A good wholesaler is as @Ericka Parrott mentioned, direct to seller, did good underwriting and can deliver an actual "Deal" whether buy and hold or flip.  Really good wholesalers can offer buyers opportunities on terms as cash offers do not always solve the sellers problem.

These are some things that make up a good wholesaler.

@Daniel Vo Understood. Buy and Hold investing is a great avenue to begin with as most people live their lives off of residual income.  WIth that said "passive" is relative lol.  Yes, You can buy and asset, fix it up and rent it out to make money without you physically having to work for the money.  However if you are self managing, that is work.  Even if you are remote and hire a PM you still have to manage the manager.  

Regarding finding discounted deals......That is the reason why I started a wholesaling business. My wholesale business found the deal, I bought from my wholesale business to build my portfolio. My metrics were to be all in purchase and renovation at or below 80% ARV. This was important because I had a lender who would lend at 80%LTV. This was important for scaling. And the deals I didn't buy I sold to other investors and built up capital for the next buy and hold deal. The first 5 years was this cycle repeating itself.

All the best man. Hope this helps!

Hi @David Naphy having a hard time with the numbers honestly. You mentioned gross rents of $3400 per month and Principle/Interest/Tax/Insurance of $2500 per month. Are you reserving for cap ex, maintenance & vacancy? paying mgt any landscape/snow/utilities? the cash flow you are referring to, are you attributing that to the $900 difference between the PITI and the gross rents?

I think leveraging the initial property even further with such tight margins is a train wreck waiting to happen.  However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.

I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves.  Seems like you are doing very well on the appreciation side which is good.

All the best!