All Forum Posts by: Walter Correia

@Candido Trinidad sounds like you are trying to preserve your capital by minimizing the amount of down payment in a new property. Rehab loans at 10% down with interest only payment might be an option. Get the property for cheap put down less money. If you are worried about tax implications you can 1031 exchange.

@Jacob Page look into https://www.homecashsolutions.com/

They do whole sale deals perhaps they can help you find something. Additionally, do you have a hard/private money lender you plan on working with?

@Andrew Freed

Hope all is well Andrew 😊!!!!

I can see why you are at cross roads. Lots of hard choices. If I was in your shoes i would ask myself how how much leverage do I want to take and is the leverage worth the risk/reward. Good luck!!!

@John Gach

I would terminate the rent in a way that it is beneficial for both. Provide her with a credit to help her move out of the apartment.

@Jonathan Bombaci

Jonathan, this is extremely helpful. I sold a 3 unit back in 2019 without looking at these indicators on a macro level. The fact that inventory remains low i know see how it can support the uptrend in housing prices. I wonder how it could be more cost effective to renovate existing homes than it is to build from the ground up considering this inflationary environment we are in. I can also see how interest rates will remain low. There is no way in hell the Fed is ready to taper in any shape or form. If they do in the short term I see almost no impact to the housing market. Thank you for sharing the details, I learned something new.

@Justin Dragon whatever works for you and your portfolio. Though you don’t need to increase the rent it’s important to take into account that we are in a inflationary environment. Therefore, by not increasing the rent you are also losing on your return as costs of utilities/materials are on the rise. If you were to increase the rent by 3% might not be that big of a deal. It’s more of a headache for the tenant to pick up and leave the apartment because rent went up by 3%. Again, you know your situation best.

@Alexander Roeschmann

It’s hard to say short term but long term 1-2 years for sure as the economy continues to contract. There’s no way a V shape recovery is possible. Also, don’t forget the other wild card? The fact that millions of baby boomers are near or at retirement means that most are likely to take advantage of high home prices and sell what they can to fund their retirement. I don’t think they will continue to wait and hope for higher home prices especially after watching their retirement accounts take a huge hit.

These are great points!!! I can't believe someone would do something like this. Wholesaling is about helping people solve problems not about helping the wholesaler make some quick gains. I just got into wholesaling about one week ago. This is what i did as a newbie:

1. I got a approximate ARV. Listed all of the comparable properties for the buyer.

2. Put together a Renovation estimate including pictures and pointed the visible issues. 

3. I put together a financial summary for the property. 

4. Free of charge for this one. Just wanted to build a relationship with the cash buyer.  

To sum this up i told another wholesaler what i did and he said i did not have to do all that work. Do you think some wholesalers are confused about this type of business?

wholesaling and the first deal i looked i spent many hours putting together the reno cost, 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $282,500
Cash invested: $47,000
Sale price: $402,000

3 units rented for four years under my management. Great cash flow.

What made you interested in investing in this type of deal?

We saw the potential for cash flow and appreciation.

How did you find this deal and how did you negotiate it?

My wife found it while driving around town. We told the seller that we were starting a family after the purchase.

How did you finance this deal?

3.5% down FHA.

How did you add value to the deal?

Added a new kitchen to one of the units. Opened up some walls and allowed more more natural light in.

What was the outcome?

We sold the property to capture the appreciation.

Lessons learned? Challenges?

We could have lived at the property for an extra 6 months and avoided sales tax.

I currently have an LLC with no real assets. Th goal is to aquire a rental at some point this year. I currently live in multiple unit under my name. Should or can I put the deed under my LLC? I will be living at the property as well. Does this mean I pay rent to the LLC?