All Forum Posts by: Charles Carillo

@Pablo P.

We work with a number of foreign investors - DM ME if you have any other questions.

Here are some other expenses you should take into consideration:

Vacancy, Property Taxes, Insurance, Water/Sewer, Electricity, Landscaping, Snow Removal, Management, Leasing Fees and Repairs and Maintenance. Also factor in a reserve for the unforeseen expenses that always arise.

@Ron K.

In my experience, families usually will stay in units for longer than couples. You are right to take into consideration the fact of entering into a contract with attorneys; you are at a disadvantage in any contract dispute.

@Elvis Briseno

I would speak to your attorney and have them draft them. It is one thing to use the same edited LOI with sellers but I would contact my attorney to draft the contracts once I have a signed LOI.

@Laurent P.

DM ME; we have a list of a few in Florida.

@Patrick Flanagan

As I understand from reading about Dave; he did not lose properties he had leveraged with 30-year FHA mortgages.

From WIkipedia (https://en.wikipedia.org/wiki/...): 
By 1986, Ramsey had amassed a significant portfolio worth over $4 million.[4][5] However, when the Competitive Equality Banking Act of 1987 took effect, several banks changed ownership and recalled his $1.2 million in loans and lines of credit.[2] Ramsey was unable to pay and filed for bankruptcy in 1988.

He was flipping properties and they started calling loans and lines of credit that he was using to flip properties. There was a pull back in the market and he could not sell them. It seems it was not cash flowing properties that lead to his bankruptcy or fixed term mortgages.

You said you want to finance them all with 3.5% down? Have you spoken to a mortgage broker about this? They said that you can get multiple 3.5% down FHA mortgages?

@Ben M.

Have the landscaper send you pictures every time they mow. Find a landscaper by referral. 

@Rajan Saini

From the beginning if time is a factor; hire a bookkeeper, hire landscapers, find good handyman and find a good virtual assistant for tasks that can be completed online like posting apartments for rent.

@Alan Hernandez

I believe the best way is to go straight to owner. Most sellers are not going to advertise seller financing and the ones that do, especially in this market, will be sold for top dollar before you ever reach out. If you go direct to owner, you are able to speak directly to them without an agent in between and build a relationship when proposing it. Most sellers don't even consider it.

@Anthony Green-Parker

When you are inheriting tenants; especially now with moratoriums, you need to underwrite them just like you would underwrite the property. You need to verify they are paying and run their name through court records to see if they have been evicted before. Have them sign an estoppel (speak to your attorney) to verify everything as you know it with the tenant and the landlord are accurate. Review the leases and the security deposits.

@Patrick Flanagan

In the real estate investing industry; banks usually require 20%-25% down and will cash out refinance usually at 70%-75% LTV. This being the industry standard and widely accepted throughout commercial and multifamily real estate; it seems the banking industry believes any down payment under 20% is over leveraged and 20%-30% down makes it a safe bet for the lender. Of course, if you are lending and it is federally backed, it is safe for the lender to go down to 3.5%. An important question here is what type of reserves are you planning on keeping?