All Forum Posts by: Arpan Patel

Have you tried looking up your local REIA? They usually run events at nights or on weekends so you should be able to attend even with a full time job. Plus you'll meet many more people that way. Good luck!!

If you are looking for cash flow then the midwest, south, and some of the west are good ideas. Just avoid the heavily populated area as a rule of thumb. Suburbs are pretty good and then rural areas good for cashflow. If you are looking for straight appreciation then the large cities. You might have to carry a negative cashflow but you'll get appreciation. All in all, it just depends on your strategy. Start by taking a look at metro data around the percent people pay out of their income in housing (either mortgage or rent) and check out those markets because people can pay their housing costs and then some. That way rent increase can easily be handled. It really just depends on your strategy. What strategy are you looking to start off with first?

Okay let's go through this item by item:

1) Comps - good to have some else informed check but what does your research say?

2) ARV - Same as above

3) Rehab - Not always garbage but if you haven't worked with this wholesaler before, then you should take a look and feel comfortable about the deal. You definitely don't want to rush into a deal by taking someone's word for it. You want to feel comfortable yourself. Ultimately, you are going to make or lose money on the deal - not the wholesaler because they just sold you the deal. It is up to you to execute. Take a contractor with you for instance and see what they say (one you trust of course)

4) Price - Usually the wholesalers will fix this number as this is how they get paid so there is no wiggle room on that typically.

5) Process - Close like normal. I recommend getting an attorney but we are in IL and here it is customary to close with an attorney. They will keep you on the right side of the law. They will still need to provide you with a purchase contract and you will need to put up some consideration but I expect the mechanics to work like normal. You may either see the wholesalers name as the seller or the actual sellers name as the seller. Still run title on the property and ask for a survey as well. You may not get the survey but never hurts to ask.

Let me know how it goes and feel free to reach out if you have other questions. Happy Hunting!!

Okay let me give you a top down view of Hard Money Lending. First is knowing the people and the motivation. They can come from many areas - some are or have been successful at flipping property and now have excess cash while others come across excess cash from other areas and know the security of real estate versus other vehicles. They all want to lend to people who have some money, some experience, and want to scale (the more the better for all three). They don't typically want newer people that they will need to guide along nor do they want someone with bad financials. Then the typical rates and terms vary but you can figure between 10-20% down on the project for a 6-12 month loan. The points, fees, and interest rates will vary widely but figure after everything is said and done to be about 10% for 6 months. They may have 1 point and 18% or 4 points and 12% but it usually all comes back to 10% for 6 months. I use 3 at a time but have another 4 i can turn to at any given moment and make it work. I am not in your market so I don't know the lenders in your area but they are relatively easy to find. You can find some at your local REIA and if they are not there then their clients area. I would not recommend hard money for your first few deals because you may get hosed by the costs of financing if you take too long or if you are over budget which are normal problems for younger in their career investors. I'd go the more conventional route or private money at first to get your feet wet. Happy Hunting and good luck!! PM me if you have other questions and I'll do my best to get you answer you can work with.

Really that is a question of personal priorities. Both will work however where are you in your life? If you are looking to have a family quickly then maybe a personal residence make more sense based on the life you are trying to achieve. If you have time until you need more space than I say get the triplex and as many other cash-flowing assets as possible before your time is more constrained. I'd worry about the lending secondary to what you want to do with your life first. I hope that helps.

I wasn't able to open it but if you get a home inspector and have then detail out for you the repaired needed for the home and if you walk a few contractors through you can get a good scope of work. Other than that, the surveyor will help you with all easement and you can review that with your attorney. Your lender will want an appraisal and that is a good thing. Last thing we always check is any title issues and you can go to your title agent and get that. Oh, and of course double check the comps that come back from the appraisal and make sure you are comfortable with how they evaluated your property. I hope that helps.

Okay let's try and go through them individually. First, if you don't have the knowledge and are can't really fund the whole thing then I say find the deal and take a less than 50-50 split in the beginning. Second, you can go to BP!! Alternatively, local real estate meet ups - that are listed on bp in the events section - and most every area has a local real estate meet up. I am sure there is one by you as well. I wouldn't necessary go to any trade shows or seminar series like Trump University or anything to network. I'd say, BP online, and BP events, and local REIA are your best concentrated sources. Good Luck!!

Are you then looking at acquiring more rental properties? What type of asset - Single family, multifamily, etc? Rentals are the best vehicles in my opinion and you got a great first jump!!! Keep that momentum rolling!!

Long Term rentals are always a good idea. Have you tried using the BP calcs - namely the rental and BRRRR calc? They will get you to remember all the smaller costs you may have left out. You can also share them with other BP members so if you'd like, I can help you take a look at the numbers. It is good to want to buy one duplex every year - solid goal! At this stage why not aim a bit higher? Since you know the game now for three years, maybe 2-3 this year and next year maybe double that and so on until your freedom number (called many things in fact). Also, we never price in appreciation in our models - either rent growth or appreciation - because that is gravy for us. I hope this helps!

They look like the want to lend in the over 5M and under 10M world. So unless you are looking for a big deal this particular lender may not make a lot of sense but that is based on my quick look at their website. I could be wrong. I hope this helps