All Forum Posts by: Steven Bonfante

@Joseph Parker  Many of us learning valuable lessons at your expense (good for us, bad for you).

Take your time and make them sweat a little.  Thanks so much for sharing. 

Great episode.  

I didn't think anyone could talk more than Brandon.

Thanks for the input @Richard Z.  That's probably the better way to go.  Especially since most of the basements in my area are a little on the wet side.

Hi All,

I'm looking for recommendations for a reputable mason who is knowledgeable in basement waterproofing. I would like to stay away from the big shops to avoid all the up sell.

The house is in Neptune City, NJ

Thanks, Steve

@Louise A. - Thanks for that info. I am working with a lender and he is aware of the office space and that we plan on converting to residential. If FHA gives us any grief hopefully we can just call it storage and qualify as a 3 plex.

@Christopher Phillips - Good question.  My assumption was leases and not month to month.  One tenant has been there 3 years and the other about 5 months.  The third where we would occupy I assume doesn't really matter.

@Nathan Gesner - Good points.  I will check the expenses again and make sure I'm not too low.

All,  thanks for your quick replies.  Very helpful.  This is all going on my punch list.

Hi, we need some help on evaluating our first deal.

We found a 4 plex that we want to house hack.  Here are the specifics:

• Asking: $335K  (will offer full price based on the market)
• 3 BR - $1200
• 1 BR - $750
• 2 BR - Our hack but currently getting $750 but could get more. Potential $1000
• Office space - currently vacant but has full bath and can convert (cheaply <10k) to 2 BR.  Potential $1000
• Tenants pay Gas/Electric/Water/Sewer
• Expenses:  $2824 (we use the BP calculator so this includes everything)
• Potential Cash flow ~ $950 including our rent for the hack and the office conversion.
• We have no skin in the game. Looking to get an FHA and have no money to put down.
• We both work full time and can easily cover the mortgage %100 if we had to.

To us it sounds like a no brainer.  We are ultra conservative and have passed up many properties based on the calculations.

Our questions/concerns/fears are:

• Are we missing anything?
• Are there any standard questions we should be asking?
• What should we get verified in writing?
• What should our contingencies be when we make the offer?
• Financing possibilities.

I know this is a lot but counting on the BP community.

Thanks,

Steve and Rae

Hi All,

I am a newbie still trying to figure out how to get financially ready for my future first deal. I want to get everything prepared so can present a valid Proof of Funding once I start making offers.

My dilemma is two fold. I am currently unemployed and do not have any liquid cash. I have a decent IRA but not yet sure of the ramifications of using any of that for investing.

I believe as far as financing goes my options are:

• A Hard Money lender for the purchase and rehab costs. I met one recently at a local meetup who was very helpful in explaining how Hard Money works. Also it seems they focus more on qualifying the deal as opposed to my personal employment situation. I would just need to prove I can cover the additional costs.
• A private money lender for additional costs (down payment and fees).
• PLEASE NOTE: Unless they are holding out, I do not have any wealthy friends or relatives.

So my questions are:

• Am I barking up the right tree in making these assumptions?
• Are there any other financing combinations I should consider?
• Is my IRA out of the question, at least for the additional costs? I know there is a pretty hefty early withdrawal penalty.
• Does BP or any service out there on the web offer a private money lender list? (I don't think this violates the "No soliciting for lenders rule")
• If\when I find a private money lender, are there any guidelines for the terms and conditions?

I think that covers it for now.

Thanks,

Steve