All Forum Posts by: Steven Goldman

Each State is different. U our home state Pennsylvania you would have your contractor sign a general waiver of mechanics liens and you would have your sub contractors also sign a waiver of mechanics liens. Most lender's insist on the waivers prior to distributing a draw on a fix and flip bridge loan. It insures that the subs will not lien your project if the general draws the money and fails to pay them. Good luck!

You know how to find the skip tracer sites. I recommend you knock on the neighbors door and ask if they know how to get in touch with the family or owner. This works. I know it is uncomfortable but most neighborhoods have a nosey body and if the neighbor does not know they may know who knows. Knowledge is power ad profit.

You should also look on your tax collectors site that may show where the real estate bills are going. You can get the owners name from the recorder of deeds records and than use it to search for estate records. I chase down short sales and loan mods in my spare time and everyone of those techniques has worked at one time or another. A good old fashion door hanger on the property with your name and I want to  buy this house may work.(You can get them printed cheap)  I love real estate! Good luck!

In my 40 years of real estate the one timeless rule: Never let anyone other than a paying tenant under lease occupy after settlement. I would to buy a property that has hold over tenants or squatters. Philly is really a difficult landlord jurisdiction. Not to mention the potential problems with utilities and other services. I would pass and look for a vacant property unless you have a law license and are familiar with Philadelphia's utility and landlord tenant regulations. Too much risk and not enough reward. 

What a great day! In most instances when you finance a property only some of the members of a LLC would be guarantors. Often, it is only one. So the concept is not a failure and mimics what you might find in the financing world.

One of the main issues raised by this scenario is the transfer tax obligations in the State you are buying in. for instances in Pennsylvania you would be required to be 2 percent transfer tax on the transfer to the LLC, 3 percent in Philadelphia. So check on the taxation issue when you transfer from personal to LLC. with new members. Your plan is feasible but watch out for the taxes nd the disputes which might arise from the partnership. I love real estate and G2 Loans wishes you smooth sailing on all of your deals.

What's wrong with it that the attorney is not going to keep the profit? Or is he just a generous egalitarian attorney? If you want to be a landlord than buy and hold. If you get a good return on the cash out so be it. Be aware that their are seasoning rules regarding properties purchased at sheriff sales. Also investigateate the title carefully especially if the foreclosure was by default. Make sure it is insurable. We regularly do cash out refinancing for BRRR investors. Good luck!

I suggest that you look for off market properties. This is harder work but has a greater reward. Some suggestions:

Here are three methods of finding off-market opportunities that your competition doesn’t know about:

1. Cultivate and nurture your connections to property owners and brokers. Since you can’t rely on listing services or online marketplaces to inform you about off-market opportunities, relationships are especially important. You are more likely to hear about an asset on the sale block first if you already keep in touch with potential sellers. And if you learn about it first, you have more time to prepare for the deal.

1. Get on buyers’ lists. Through the above-mentioned relationships, you can get yourself placed on buyers’ lists that keep you informed about properties that are quietly up for sale. You’re more likely to discover “,” deals that brokers know about but sellers don’t want to list for fear of alarming tenants or management.

1. Become hyper observant. Find off-market deals by discovering them before the seller commits to selling. A property with deferred maintenance or poor Yelp reviews could be ripe for new ownership and management, and a seller looking for a way out will welcome a pro-active lead. The same might be true if an owner has held the property for many years and has been toying with the idea of listing it. Without the rush from competitive buyers, that seller may warm up to an interested investor.

Remember most lenders will only lend on investment properties that have a debt service coverage ratio of 1.0 or greater. 1.0 is the minimum. Banks like 1.25. You calculate D.S.C.R.  by assuming a 20 percent down payment or 80 percent financing. Estimate the interest rate and then use a 25 or 30 year amortisation. After you have calculated your principal and interest payment add 1/12 of the insurance and taxes. That is the monthly debt you need to service. Next,  calculate the monthly income less 5 percent for vacancies and repairs. Divide the income by the monthly debt service and you have a D.S.C.R. 

Example: 1200.00 income 1150.00 debt service = 1.04 this is marginal. So make sure you know if the property can be financed prior to your offer. 

If the property does not work values are rising faster than rent. This is a problem throughout the Untied States at the moment. Remember most lenders do not like small loans.So messing around with $100,000.00 properties is for someone with access to their own capital (or a partner who has capital)through savings, HELOC or borrowing against their 401k. These lower value properties located in Urban core areas are hard to refinance but often have good cash flow.

Good luck!

Here is an article about the suburban Columbus real estate market. I would stay with bigger suburban areas as small towns can be harder to finance. 

https://www.newhomesource.com/...

Columbus is a strong market. To find a good deal you will have to find properties through wholesalers or off market websites. The competition in Columbus is stiff. Many of the surrounding suburbs are still not over appreciated and may be a rewarding place to look. We have made numerous hard money loans in Columbus and Ohio. If you find a property feel free to send us the scenario and we will lend our view point to your decision. Good luck! I love real estate a great place to invest your time and money.

A multi unit property is not for someone who does not have capital to maintain, rehab and invest. Most of our investors start with a 10-20 multi unit in order to establish the necessary procedures and relationships to be successful in the multi family market segment. Do not enter into an agreement on a 70 unit multi family that needs rehabbed without a full inspection and understanding of the potential expenses which may lay ahead. We finance multi families and you should also determine what the ARV will be when the building is returned to a more standard condition. Are you planning on student rentals? Be prepared for repairs and damages on the turn over of the units. We wish you good luck on this project!

https://www.google.com/maps/pl...  Here is a link to the building today. Observe the eaves and he incredible d aluminum installation by scissors lift and individual fabrication. Work of art. Preserved historic nature of the building.