All Forum Posts by: Alexander Felice

I do both but I don't decide my strategy based on the property, I choose a strategy then find the property. 

I bought rentals when I needed stability and residual income

Now I buy flips to cure the boredom that my rentals gained me 

;) 

cash closing is easy. here in NC it's about 3 docs total. 

nothing else is different, make sure you do safe procedure when wiring the funds. 

yes, any lender is going to want to see your entire balance sheet and take it into account.

Also what type of loan you're asking for will be considered, for instance Fannie Mae won't allow more than 10 financed properties in your name. 

Every lender is different and they have different risk metrics. Some like SFR better than others. The number of loans matters but also how those individual assets are performing, and how is this new loan part of your larger strategy, all sorts of stuff.

as a career lender I can tell you that we care about every single thing we can learn about you. It's called the 5 C's of credit 

character, capacity, conditions, collateral, capital

as the saying goes, "you don't need to time the market, you need time in the market"

also,  the only thing worse than waiting for market dips is the formatting you chose to write this post

this is an argument for semantics, at best. The lack of context for terms is misleading and largely just flat out incorrect. 

You should not misuse accounting terms when trying to teach the basics:

An asset is something on the balance sheet that has value

a liability is something on the balance sheet that shows debt

assets include cash, real estate, stocks, gold, etc

liabilities include mortgages, account receivable, tax liens, etc. 

not all assets produce cash flow. Some assets produce cash flow AND have liabilities attached to them (like a cash flow rental with a mortgage). This post confuses the terms ASSET with "profitable investment" 

Not cash flowing assets are profitable, but that doesn't mean it isn't an asset. Just because something doesn't produce income doesn't make it a liability.

Your point is that someone should buy assets that cash flow to build wealth, sure, but buying with debt (liabilities) is generally part of that equation. This post also assumes that appreciation of assets has no value which is not correct. Appreciation often makes much more money in the long run than cash flow, but you have to pay a premium (both in risk, and capital) to get there. 

Your idea here is good, but you should have expanded the context to really make the point clear. 

liquidity is going to tighten during downturns and periods of high volatility. 

lenders are also going to be more risk averse 

hard money is inherently higher risk for borrowers, it lives on the basis of extreme market liquidity, and it's used explicitly for deals that institutional lenders won't take the risk on (flipping is a horrible business model for a regular bank).

you aren't alone by any means, there are still people out there lending but it's going to tighter going forward for a while. 

lower quality of tenant in general, even less growth than Fayetteville (which is already abysmal), and it's a ~25 minute commute to get these

Spring lake often looks good on PAPER but real estate doesn't work by what's on paper. The numbers are only a small portion of what's important in a deal. The juice ain't worth the squeeze for me. 

Ah yes, we did speak. I can't imagine why I didn't realize these were the same accounts LOL 

@John Rumsey I don't see anything from you, I don't usually miss messages. 

Happy to help though, I've been investing in town a while now. Most of the people who were recommended on this thread are the teams and systems that I started but I'm gracious enough to let people copy ;) 

and of course you have a terrible time with brokers, brokers are the worst. 

To find deals, talk to wholesalers

to find education, talk to investors 

if you don't want to get educated or learn how to find great deals and you want someone else to make you feel like they are on your side while taking a disproportionate cut for the value they provide, talk to a broker

I would have to keep the property for a year for it to be viable as a 1031 exchange, so no. 

I prefer just to turn the inventory, the tax hit isn't on the top of the list of my concerns ;)