All Forum Posts by: Nicholas Weckstein

Wilkes barre PA, all of Luzerne County. Do your due diligence. Lots of bad stuff but lots of good. The city is working hard to clean itself up

I feel that the best route in real estate investment is to leverage when ever possible. Here’s why: Let’s say you find a 220k property in a good area at a 7% cap rate which equates to $15,400.00 in ROI. You would probably see the same return in the stock market, maybe more, maybe less. With real estate being a bit more of an “active” passive income with having to deal with tenants, repairs, bills etc simply parking that money in a good low risk mutual fund would yield close to the same results with less to worry about (minus a stock market crash). BUT what the stock market lacks is the ability to leverage forward. You can use that money to acquire 4x what you actually can purchase with your cash. That being said you could put say roughly 200k down on an 800k property in a very good area with a cap rate of let’s say even lower than the other one of 6%. Now your talking about 48k a year in ROI. Big difference. Not to mention that once the property is paid off, you could then cash out refinance 80% of your 800k property and have 640k to put down on a 2.5 million dollar property. So that’s the long answer as to why leveraging is very important. Best of luck.

Don’t mean to be negative and I’m not sure of your goals in real estate. But while this property may appreciate in value. Just based off the possible purchase price and rental income. You’d be negative cash flow. Probably significantly. I crunched the numbers quickly using a mortgage calculator with average interest rates, and from PITI alone you are probably negative. Now add vacancy, cap ex, PM, maybe sewer bills, water bills....you could be under water pretty quickly. Doesn’t seem like a good buy to me, but then again I buy for cash flow not appreciation. Also the only way I can see u putting 10% down from my experience would be if you house hacked which may be the only way this property could work, that or putting down much more or buying it for a whole lot less. Just my 2 cents. All the best

I’m looking for a referral to some one who can install new cabinets for me. Also need junk removed. Wilkes Barre PA area Any recommendations ? Thanks in advance !

James Barnhart it’s in PA actually. I don’t know why I was under the impression you couldn’t HELOC on an investment property but I guess I was wrong. Any cons to a HELOC in comparison to a cash out refi ?

Hello all, I’ve been shopping around for a cash out refinance loan. One local bank I spoke with told me they would do a HELOC on an investment property. The terms are as follows 80% LTV 5.29 % fixed rate 15 years 50% DTI No fees and no seasoning period. It’s not exactly what I was looking for but I found It worth looking at. I’m using It for the BRRRR method I was initially looking for a 30 year cash out refinance. I also expected the interest rate to be a bit lower than that. In the 4.5% range. I’m still shopping around but wanted to see what the community thinks as this would be my first Refinance. What else Can I expect ? Thanks

While bitcoin is more of a store of wealth. Crypto currency such as ETH which actually has use and protocol in relation to smart contracts in REAL ESTATE. Also has to do with Title Insurance. Ripple coin is a protocol for use between banks to prodded transactions extremely quickly. While I do understand the risk, their is indeed reward. To the people who’ve said you can’t buy anything with bitcoin for crypto currency think again. Look it up online and see how much u actually can buy. You can also exchange It for regular US currency. They have ATMs popping up. I laugh because many people think bitcoin is like the only crypto. When in fact It was the first but certainly not the best. Their are thousands of crypto coins and all of them have different uses. I do agree that there are some issues that need to be worked out but their is money to be made. Hell bitcoin went up 4K this week..... Check out Ripple ETH Litecoin Bitcoin Dash Monero

Mary K. Are the lending guidelines really easing up again ? Some one else had mentioned here that it’s becoming easier.

Tyler Weaver yes this I am aware of and has a lot to do with my issue with getting another property. Some one on this post made a great point that possibly because I’ve been in the same industry just a new job that they may still be able to work with me.

John Hickey I know you know what it’s like ! The love hate for the industry. You love when your walking out with piles of cash but sometimes just hate It. I did the whole 60 hours a week thing as a GM and realized I’m wasting my time making some one else’s business run. I don’t want to do that ever again. I just started about a month ago in this new restaurant so only about 30 hours right now. A few people did say to get another job. I have the entrepreneurial bug, so I like to have the extra time to work on my ideas. I’m currently trying to design a T-shirt business that’s online based. Also as long as my RE agent license is approved I will be doing that as well. So getting another job in my opinion will take time away from what’s really important to me and that’s starting a business. I’ll tel you the truth, after doing 60 hours a week as a restaurant GM, and being badly mistreated by the owners. They paid me 14$ an hour !!! They figured I was only 21,22, and they could take advantage of me. The free time I have now to try and work on my own business ideas is really nice. So I really don’t totally want to get another job. The good thing is that I’m great with money so I’m saving plenty still.