All Forum Posts by: Catalin B.

It appears that in your example, one have to find the right multifamily property, buy it at a discount (i.e. 80% off), remodel/rehab in order to increase the LTV for the property...and follow a typical BRRRR strategy.

I guess that buying existing multifamily right off the bat from Loopnet.com might not be profitable after servicing the loan.

Thanks for the input...much appreciated!

I found this property pretty close to what you were talking about...has been remodeled though

https://images4.loopnet.com/d2/X00rYV52P2tEJ0gNt8f...

I was wondering which one of these two scenarios might be better (assuming $1 million budget):

1- buy an old apartment complex, remodel and collect rent (maybe get a 8-9% CAP rate return)

2- buy a bulk of brand new townhouses or even single family in the same development and rent them out ...I've seen new properties around low $200k in the SE (very low price per sf...I'm not sure how some builders can still make a profit selling below $130/$140sf)

Any thoughts on this?

I am wondering what experienced investors/builders might think about the following investment scenarios (sort of passive income):

1. Buy the right piece of land and build a five/six row of townhouses and rent them out (@1,500 sf/unit, maybe rent them @$1/sf or a bit more)
2. Buy a beachfront property overseas and build a small resort (six luxury villas/bungalows) each with private plunge pool and stunning views (charge $350/$400/night)

-option 1 is less risky than option 2 but rewards are considerably lower for option 1.

-option 1 has lower entry costs since the beachfront properties can get very expensive (anywhere from $2/sf up to $20-$40/sf)

-construction costs in US are considerably higher…$120-$140/sf vs. $75-$80/sf overseas (high quality)

-loan service costs are cheaper in US vs overseas…

-reselling in US is much easier vs overseas

-maintenance people, managers and operation costs are way lower for option 2

I know that these are very broad different scenarios with a lot of variables…however I am trying to see if I can get some feedback.

I am wondering if anyone here has been involved with Independent Senior living type of business and can share their thoughts/experiences (e.g. builders, investors on REIT's, people living in these facilities, etc).

While reading about the Buy Rehab Rent Refinance Repeat strategy, I come across  the following questions and maybe that someone experienced here might shed some light. On paper it looks good, but in a real life scenario projections might be different:

• -the third R, refinance could be possible if good credit and debt to income ratio are satisfactory...since many aspiring investors are far from that, what are the alternatives?
• -After reading several posts regarding the BRRRR cash flow, it seems that a $300/$400 cash flow average per month might be achievable...in order to make the effort worthy, this strategy needs to scale to many more properties (50-100+ rentals)...I am wondering how an investor can manage a bunch of rental properties scattered around a city? What if the investor expands to a different city/area? It might become a daunting task.

Thanks for the tip!

I am looking for an advice from more experienced investors. I am ready to invest and I am contemplating two options:

1-Repackage my mortgage and get a lump sum of money in the form of a new mortgage (existing one + enough cash to invest) for a higher interest rate (between 6.5%-7.5%)...second mortgage not doable (e.g. HELOC type)

• Cons-I will loose the 4.37% interest mortgage that I currently have and forced to pay higher mortgage
• Pros -Total control of the funds

2-Use private lenders/hard money lenders for 12% interest and some points as needed

• Cons-Might be difficult to secure a loan

• Pros-Use these types of loans as needed

Has anyone been through these thoughts?

I am new here and I am looking for a short brief description about how a private/hard money loan works from start to closing (typical process)...this might be helpful for both private parties that are interested in lending funds and also for borrowers looking to flip properties (what to expect)...I have outlined some questions below:

-What type of documents are usually needed for private money loans closing (they might differ from state to state)...sample docs links might be helpful (e.g. promissory note, deed of trust etc).? 

-What certified parties are required on the process (e.g. attorneys, brokers, title company etc) and what the lender can do himself in order to save money?

-How the private lender is protected in the case of default, late payments etc....in other words how to reassure a potential private money lender (friend, family member) that their funds are safe (mimic the professional and experienced private/hard money lenders steps)

-What are the common terms of the loan (rate, interest only payments, length, penalties, collateral on other property equity, early/late reimbursements, etc.)

Recently got into BP forums and it seems like there are a lot of knowledgeable people willing to help.

I am planning to get into Real Estate Investments, targeting passive income. As of 2018, I do have approx. $1.1 mil + equity in my property (no liens, and very good credit score)

Since I am running a business on my first level of my home, I couldn't find any financial institution to secure me a HELOC (apart from point.com which doesn't seem a good deal for me)…apparently, the lenders don't like mixed commercial/residential type of business (e.g. assisted living). I don't want to sell unless I will be able to get going and generate some revenue from a REI. Not sure if I can secure private and/or hard money. So financing it is an issue.

I have experience with several remodels, additions and gut rehabs for my properties where I was the GC (planning, permits & inspections, subcontracting)

I can probably start small and purchase cheaper properties with cash (around $100k+) and rehab/remodel/rent/flip and build up a portfolio. However, I was wondering if I can jump to my goal faster.

Goal:

Buy a lot and build two vertical five plex row townhomes, approx. 1,200/1,400sf each (garage at the bottom) in a B neighborhood, and hold. Looking for 10% or higher CAP rate from rentals…better returns than index funds

Or

Buy and rehab/remodel an existing apartment complex in a B neighborhood and hold…I rather do the former (low maintenance)

Location:

I was thinking Orlando, Tampa, Jacksonville areas…good demographics, steady real estate appreciation, low unemployment, relatively low real estate prices… I currently live in Seattle area and the prices are extremely high for this kind of project.

I am willing to temporary relocate or commute in order to manage the project (wife will take care of the existing business).

I am looking for advice, suggestions, comments