All Forum Posts by: Shiela R.

@Vlad B. all the experts like Bill Bronchick will say no investor buys banking on appreciation, solely.  Feels similar to gambling. And negative cashflow is a non starter.  That being said, putting more down like @Russell Brazil suggests to compensate for higher rates is also what I am doing for purchases of long term rentals currently. But every market is unique.  Real estate is valued block to block.  My market has very high demand and low inventory. I would not purchase in a market where inventory is increasing with new builds, fyi.   Saw several shirts lost in the early 2000s from over leveraging in markets that were overbuilt. 

I'm purchasing some SFHs for my non profit and it's been tough to compete against multiple, cash offers but it is possible and if the numbers work, take action as @Kerry Baird said:)

Hi @Daniella Rodriguez. Virtual fist bump on the cash reserves. :) I started young too. If you want passive income, have you considered a private fund? Also, maybe use some of that money to invest in some real estate education? You may want a deeper understanding of how the funds actually make money. Successfully, that is;) IE. the foreclosure process and how it relates to note brokering or how to make money on debt. There are tons of ways to make money with real estate. But it's not all conventional - buy a house with a DP and get a loan, etc. I've done tons of deals and also paid for tons of education. Bought houses for $1 dollar and won bidding wars later in the market cycle. I'm in a super hot market (Boulder County in Colorado) and I'm under contract on two SFH that will cash flow $5k+ net/month each.

Hi everyone! I'm looking for capital. I've got tons of equity in my portfolio and personal residence. Cash reserves. 805 FICO. Been approved for 2 DCSR loans up to $630k/each. The problem is my market is so low in inventory that I'm competing against all cash. Even when I'm not contingent and am willing to accept properties "as-is" and close in under 30 days.

I would like a HELOC for $400+k in second position on my own SFH. The property is in a great market. There is a housing cap for single family homes so once you own one, limited supply + steady demand=stable and increasing prices even in a "national downturn". I'm looking to purchase in the town just outside where I live. I'm in CO. I've got 22 years of successful investing and sales experience in real estate and property management. I started from nothing. Who wants to or knows someone who can do a private money HELOC for me?

@Mike Romano okay so you own the property and are managing the entire project.  He is simply lending $X amount for rehab and maybe holding costs + he wants to learn. The learning is another "cost" to him, IMHO.  

I would have the JV repay him for costs incurred and then split the profit of the flip 80 you/20 him. If he is really not on board with that split then you could go down to 70/30.  But keep in mind you want his money not his opinion;)

Best of luck!

Hi @Mike Romano.  My pleasure :) This could work.  I agree with @Aaron Gordy in that if the capital partner is only funding the rehab and holding costs and NOT managing the project, that is not an even split, IMHO.  Plus, are you getting the financing/loan/cash/terms or how are you acquiring this property? That also contributes to the split.

Hi @Mike Romano.  Love that you've done 7 flips.  Congrats!

I'd need more info to advise on how to structure the partnership.  Are you doing all the work? Are you acting as a GC or know the timelines, costs, etc for the project? Do you demo or hire a team?  Do you design or hire a designer?

I have learned a JV is simpler than creating an LLC. There is no bank account and EIN required. I'd definitely hire an attorney who knows about real estate partnerships in your area.

As for the capital partner learning.  That is a tough call.  Most of the time people have money or knowledge but not both.  IE they are skilled with carpentry know how but not building up funds. Inevitably, he will learn no matter what. What specifically is he hoping to learn?

Um, a sturdy lockbox might be a good consideration?  You can get them with ability to change the code remotely so you can maintain security. I agree with what has been said already - follow your lease, email to keep things in writing. 

Just an FYI, my long term rentals are in A class neighborhoods so my tenants want necessary repairs and I simply ask if I can give their info to the contractor/scheduler (plumber, HVAC, etc). Then, they schedule the time that works for them.   Also, if you don't have a PM, you really should being out of state. 

@Christopher Gonzales, you answered your own question.  Yes, totally possible. :)  Find out what the seller wants and/or needs before making an offer. Why are they open to seller financing?  Do they know of the tax benefits?  Do you?

Sometimes it's as easy as a low rate or even principle only amortized over 30 years with a balloon payment in 5-7 years where you'd cash out the seller and bring in new financing.  Other times they need cash upfront. 

Flip it. And learn from this :) STRs are dicey bc the laws or HOA rules (if in a condo or townhome) can change in an instant. Roll your equity into something that fits your goals of keeping things for long term holds and maybe flipping if that is the highest and best use for the property. My point is be flexible.

Hello @Sam Meade. Have you ever lived outside of the Seattle area? I'm old school and the biggest mistakes I see made are not knowing your market. This happens the most when people invest outside of a 60 minute drive from where they live. It's hard to know all the nuance of a market if you haven't spent a lot of time there. (IE I am watching a listing that advertised "earn $5k/month according to airdna". What they didn't know is the city that the home resides in only allows STR if it is your primary residence. And even then only 50% of the year.  They are headed to foreclosure.) You get my drift.

Yes, you can find an agent but never trust the agent to tell you what is a good deal, etc.  YOU need to know that. Then, you will also know how to vet an agent.  Nothing against agents.  I'm licensed.  But these are big financial decisions. You want to know for sure you are making the right move.