All Forum Posts by: Arpan Patel

I do but every market is different. Good rule of thumb is to have about 30% left in the deal as your profit. ROI is about what money you have invested. If I invested all of my cash my ROI would be 43% (I got that by have 30% profit margin divided by the 70% I would have invested in all cash therefore 30/70 = 43%). Now I don't use all my cash, or any of my cash ever in fact, so my returns are leveraged from there. Does this help? And yes, that deal is very very skinny. There must be something better but of course every market is different. I hope that helps,

-AP

You might be able to refinance but only about 122.5k if it still cash flows with a 1.25 debt coverage. Have you tried the bigger pockets rental calc? It has some features that may be able to help you make your case to potential lenders.

-AP

Why not purchase and get the rehab lien in your name and then transfer the property to an LLC anyways but continue to pay? Banks have a lot more to do than to go after the Due on Sale clause. You are a performing asset and lenders have much better things to do than worry about a performing note. I know there have been some epic posts about the due on sale here at bigger pockets but the frequency is low so why not have best of both worlds?

-AP

PM me. I have a hungry new realtor that is working out great and I believe he can help you as well.

-AP

@Ehab Tadrous: Depends on a lot of factors. The first being the asset class. If you are buying a large commercial project that doesn't need significant renovation then your relative floor of travel expenses can be covered more easily than if you are looking at one home. For instance, if you are cash flowing 100 per door and your travel costs are 600 dollars total flight and accommodations then you are using half your yearly cash flow in travel alone versus 100 per door for 100 unit complex. Secondly is the type of management necessary. If you are picking a strategy that requires more direct daily attention like a luxury condo flip for instance then your presence is more of necessity than purchasing a note where your presence is not required at all. Given all of that, then the last thing is the team you are building around you. Some crews or property managers require more of your attention than others for the same given work. Many factors to consider. What type of opportunities are you attracting?

Take a look a the bigger pocket book on taxes. That will have a good jumping point for you. (There was also a podcast on this a few months back). I'd also take a look at podcast 109 with legal strategies. Lastly, what did your CPA tell you would be best for tax purposes? Ultimately, they will be your best source of info for your area.

-AP

It also depends on the asset class. If you are looking at a 100 unit complex then if makes sense if you have experience with management. If you are looking at one or two fix and flips then probably now because that type of investment requires eyes on it so the quality doesn't take a day off. Notes probably can be done anywhere. If you are talking about single family rentals then it depends on how many you can amass to out weight your cost of travel to inspect. Depends on what you are looking to do and the type of investment.

-AP

It's probably not your best bet to try and wholesale deals that are already listed on Zillow or the MLS. There doesn't seem to be room for you on this deal. Signing any paper work with the wholesaler still won't give you any standing with the property itself. And about that rule of thumb, what value would you delivering a buyer for a wholesale that is already made public on Zillow? When I work with wholesalers, I'm looking for deals that I couldn't have found anywhere else. I hope that answers your questions.

-AP

The end of the day it is all about how much research have you done and how confident are you to execute based on what you finding are telling you. Know your numbers and have the confidence to strike knowing you'll need to tackle challenges as you move forward.

Agreed. Can never be too prepared! You'll more than likely need that level of detail and honestly I'd lead with all that preparation. It well set the tone that you are not some wanton investor but that you have done your homework and will continue to do so in the future. They are not only looking at the property but at you as a person as well. Best advice is if you were looking to lend thousand or hundreds of thousands of dollars on one person and one asset, what would you like to see from someone? Plus lenders probably already know what your numbers should look like because you aren't the first client. They are more verifying if your numbers match theirs. Hope that helps,

-AP