All Forum Posts by: Timothy VanWingerden

Yes you should and yes there will be opportunity. Refine your list so you are buying something that you want. If you are looking for a value add then take out newer properties, etc.

It would be unrealistic to reach 20 contacts a day. It will take multiple calls and different phone numbers to reach the correct person. If you are calling 3 hours a day, expect to reach 5-10 property owners.

If I were you, I would focus on specific areas and broaden my range to 2-12 units. It’s common for investors to own a handful of duplexes and quadplexes on a street and that gets you to your number.

@Kyle Gullett welcome and great to hear that you are getting started in RE. It’s an exciting journey that’s for sure. Happy to help if you need anything.

Not sure what the current landscape is for COVID is in your state but if they are MTM, you can give them a 30 day notice that you will not be renewing their lease. If they want to move into the newly renovated units I would treat them like you would a new tenant and run them through the same screening procedures.

Commercial is much more powerful than SFH since it's valued based on NOI and allows for forced appreciation at a scale much larger than a portfolio of SFH. As for your cash flow number, that really is based on your personal strategies and goals. Also, how are you defining cash flow? Are you saying it's the money you clear each month? The two best metrics to use are cash-on-cash and cap rate. Both of these metrics take into account the return on capital both leveraged (cash on cash) and non leveraged (cap rate).

My advice would be to find a local group and network; keep on reading, learning and analyzing deals. It’s never too late to get started. Best of luck

@Will Payne I would call a couple of lenders in your area and ask them. Feel free to send me a message and I can send over the contact info for some lenders in Lexington.

@Zachariah Hays My cousin loaned me money in exchange for equity. I knew that was an expensive route but the ease of doing business was worth it as I’m still developing a track record etc.

I guess I should clarify is that I left 5k in the deal after 85% LTV. So I wouldn't consider it a home run, although I did learn a lot through the process!

Just to echo what everyone is saying, I would have been more conservative on my numbers even though I thought I was being conservative. I knew going into it the numbers were a little tight but I went in the deal anyway. I ended up spending 5k more than what I wanted which meant I left 5k in the deal.

Your lender would look at your personal finances and income along with the income generated from your LLC (if any) and you will personally guarantee the business loan. At least that has been my experience with my newly formed LLC.

You can get the loan in your name for better terms probably, and then move the property over into your LLC. I've done that a couple of times without any problems at all. Loans do have a "due on sale" clause, but I've never heard of an instance where it has been enforced. If the mortgage is being paid, they usually aren't worried about a quitclaim deed transferring the property over to an LLC.

I would suggest you look at your investing strategy and determine what is the best use of the money in light of your goals. The metrics I like to look at are cap rate and cash-on-cash return when analyzing whether or not I should refinance. 

The interest rate is just another expense, but it's just one part of the entire picture.