All Forum Posts by: William C.

Gregory Schwartz surely this can’t be a cash flow play at $500 a unit, can it? Debt service, taxes, and insurance alone must equal just under the $1600 the current owner is receiving in rents. After cap ex, maintenance, vacancy, management, etc, etc I cash flow roughly $1000/month, with $2500 more in revenue. Maybe I’m missing something? Do you have more detailed numbers that your using that show money left over each month for you? I do believe that doing a marginal deal is better than no deal at all, even if for the knowledge and experience alone. But maybe there is a way to eek a even a small profit each month in some other deal? Any way I slice it the cash flow is negative, unless of course nothing ever needs to be replaced, no Tenants ever move out, and nothing ever goes wrong, and you manage the thing yourself from long distance.

Just to clarify, you have actually seen pictures of the place, right? Your title indicates you have no idea even if the condition of the place, yet, we all know you just mean you won’t actually be stepping foot inside the front door, correct? Otherwise your just being kind of reckless for the sake of being bold or something when there really is no need to approach your first real estate deal like that. $1600 per unit seems a little high but I don’t know your market. I just paid $190k for a triplex and am getting about $1500 a unit so you might not be far off, but budget for some new paint and carpets/flooring. $2000 seems unreasonable though. Best of luck, I’ll be following the thread.

One other note, regarding the title of the post....we do have an umbrella policy in place as a layer of protection for the flips and other BRRR we did. So it’s not even the “liability” he doesn’t like, it’s the property being “his”. Almost feels weird to type that. 90% of this site would want to be the one to be owner in the end once all the cash is pulled on the refi and it’s a cash flowing property with plenty of equity.

Hey there I’m not sure whether I’m looking for legal advice, Mortgage advice or something different all together but here last the situation. I’m an experienced real estate professional. Iv been an agent for over 10 years and have been investing for over 5. We have done 5 flips and one BRRR so far. Essentially every deal we’ve done has take about a year from start to finish, mainly due to our one man band contractor but that’s besides the point. My issue is this. I find the deals, analyze the deals, work with the contractors and or designers to maximize potential, then list and sell when it comes time. I know my market. I’m always conservative, and we,be made money on every deal. And we’ve made more profit on each deal in progression ending with a latest where we netted about $65k on a pop top. I say all of this to show Iv proven myself and my numbers to my partner. We are looking at another BRRR opt unity. Our first went better than expected, currently producing $1100/month net cash flow, around $50k equity upon stabilizing. This new deal has similar numbers and will cash flow a little bit more conservatively , and potentially 2x. My partner gets the financing in his name. He has the credit, assets, income to make all banks compete for the loan. He doesn’t enjoy the idea that he is “on the hook” for the loan. He knows we have many exit strategies, and he knows I can manage the building and keep it cash flowing just like our first deal that’s been stabilized for 2 years now. It’s just the thought of it in his name that he doesn’t like. How do I work around this? Do we form an LLC so we are both on the hook? I could probably get the loan, and have his “co sign”, but what other options do I have? Anyone else in a partnership like this and have the same concerns? Again, he’s not concerned the deal will go south, he’s just not a real estate guy. He’s been in the stock market his whole life instead. He clearly has trust that I can perform, we’ve done over $1.5m in deals together, he just ultimately doesn’t want the properties and loan “in his name” when all the dust settles. I can “buy” them from Him eventually. And we can co sign. But looking for other ideas. Thanks in advance.

Evict?

Call a different lender... Iv helped many new grads purchase right out of college. Name a degree related job for a history major....

Are these loans specific to credit unions only, or are private lenders and portfolio lenders doing them as well? Anyone with some experience please chime in.

Your not going to find your answer on here. You need to call a mortgage broker or loan officer, or a few of them for that matter. Tell them your plan exactly. Approved or not approved but a plan to do so in the future. Done and done.

Alexa K. Ok, I understand what the seller is asking for. Ultimately they don’t care if you get a mortgage or not. The seller is assuming you can’t get a mortgage on it. That doesn’t mean that will accept an offer other than cash. But you are over complicating this. In that price range it’s likely to be difficult, but not impossible. Private lenders, or a package loan with other property comes to mind immediately but I’m sure there are other ways as well. With that said though, I didn’t realize we were talking about homes in the price range of 12-15k. If you have decent credit and job you can get a personal loan for that amount or even a credit card with cash advance capabilities... I’m not telling you to use these methods, but if you can’t afford to lay out 12k cash for an investment you probably shouldn’t be doing it. There are a number of repairs I can think of like roof, heater, AC that can all of the sudden break down and need replacement which will cost about half as much as the entire house.

Very sorry if this was already mentioned, but why is the seller asking for cash only? They do realize they receive the same check at settlement from the title company no matter how you pay for it? If they are assuming you can’t get a loan on it, price their assumptions wrong and get a loan on it. All properties can have a mortgage placed on them, no matter the condition. The loan product may vary some, but you would be amazed by how uninformed sellers are in regarding loans and exactly what a bank requires before lending on home. If someone is living it it, chances are it would pass an FHA appraisal, which is typically the toughest on “condition”. With all that said, I’d go through the normal loan process as though I were buying it with a loan to make sure I could get one before I paid cash for it. Your income, credit etc all make more of an impact on the loan than the property.