All Forum Posts by: Andre M.
Andre M. has started 1 posts and replied 39 times.
Post: Lima One Capital Pre-Approval Time
- Investor
- Irvine, CA
- Posts 39
- Votes 3
I was working with a broker and got a Lima One EOC dated 1/18/2017 and had the understanding that Lima One would do a Rental 30 loan on 6 of my properties (the address list was shared beforehand). I immediately applied on 1/19/2016 only to receive a revised EOC saying that they only could do one of my property because of certain property criteria. Considering the time and effort to pre-coordinate and share the address list upfront before applying, I'm disappointed that Lima One switched/changed what was discussed after I applied on their website, based off the EOC I received from them working with my broker. I'm very disappointed, when I called Lima to ask why the change the analyst on the phone made up some story that last week we were doing those type of portfolio loans but not anymore. He wasn’t aware that I just received an EOC from Lima just the day before 1/18/2017 for my properties and all the precoordination. Feels like a bait and switch and that I wasted my time coordinating upfront upfront beforehand.
Post: Agent, investor, contractor in Michigan
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Post: Newbie from Michigan / Detroit last 5 years
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Welcome to BP Darrol!
Post: Where is best area of country to buy income properties?
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Originally posted by @Ray Browne:
Some new construction and rehab is vital to keep a neighborhood alive, no one is going to put $10,000 of attractive windows, siding, and the like on a house with a market value of $8,000. With the decreasing population in some of these areas are we likely to see widespread demolition? If so are homes that are at the same price point in neighborhoods that aren't likely to see the wrecking ball a fantastic long term hold play due to a potential future scarcity of housing? I don't expect labor/material pricing to get lower in the next 10-20 years but if these home prices don't quintuple or more there won't be any new construction in these urban neighborhoods.
Here are a few links about things going on in Detroit somewhat related to accelerated demo of some blighted structures in the city:
Detroit to get $300 million in federal help - Sep. 27, 2013 - CNN Money
http://money.cnn.com/2013/09/27/news/economy/detroit-federal-help/
Ford Foundation donates money to help Detroit manage its federal grants
http://michiganradio.org/post/ford-foundation-donates-money-help-detroit-manage-its-federal-grants
Bill Pulte: From Home Builder to Detroit's Unlikely Blight Buster
http://www.forbes.com/sites/joannmuller/2013/10/09/bill-pulte-detroits-unlikely-blight-buster/
Gilbert: Tear Down All Of Detroit’s Abandoned Homes At Once
http://detroit.cbslocal.com/2013/10/01/gilbert-tear-down-all-of-detroits-abandoned-homes-at-once/
Plan to eliminate blight in Detroit may top $1 billion, task force says
http://www.freep.com/article/20131212/BUSINESS06/312120137/Detroit-blight-Quicken-Gilbert
Detroit bankruptcy judge orders company to stop collecting casino revenue (Access to about $180 million a year that was flowing to creditors from its casinos)
http://whtc.com/news/articles/2013/aug/29/detroit-bankruptcy-judge-orders-company-to-stop-collecting-casino-revenue/
Federal, Foundation, City and Corporate Investment Areas in Detroit
http://datadrivendetroit.org/web_ftp/Data_Mapping/InvestmentAreas.pdf
Post: Apartment building as a first investment
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Originally posted by @Account Closed:
Originally posted by @Annette Hibbler:
Every time I hear of investing in Detroit, I think of @Joshua Dorkin . I don't know why.
Yes Detroit has a bad rap. Just like any market you just have to understand the area that you are investing in or you will lose your shirt. I know Detroit and its neighborhoods very well as it was my hometown. I have been investing in the city and in the surrounding area for several years and I typically get returns better than the general 1% & 2% that I see people mention in regards to residential property in these forums.
Post: Promise Zones announced by Obama
- Investor
- Irvine, CA
- Posts 39
- Votes 3
"I can't help but notice that the one city that needs help in all aspects, Detroit, didn't make the list."
In response to your comment about Detroit it probably was not on the list because of the large amounts of recent aide, ongoing investment, and the bankruptcy being in midstream. These are only the first 5 zones, maybe Detroit will be selected later after some of the bankruptcy situation plays out specifically the pension situation. Also below are links about some Detroit's current funding and investment and where its going.
Detroit to get $300 million in federal help - Sep. 27, 2013 - CNN Money
http://money.cnn.com/2013/09/27/news/economy/detroit-federal-help/
Ford Foundation donates money to help Detroit manage its federal grants
http://michiganradio.org/post/ford-foundation-donates-money-help-detroit-manage-its-federal-grants
Bill Pulte: From Home Builder to Detroit's Unlikely Blight Buster
http://www.forbes.com/sites/joannmuller/2013/10/09/bill-pulte-detroits-unlikely-blight-buster/
Gilbert: Tear Down All Of Detroit’s Abandoned Homes At Once
http://detroit.cbslocal.com/2013/10/01/gilbert-tear-down-all-of-detroits-abandoned-homes-at-once/
Plan to eliminate blight in Detroit may top $1 billion, task force says
http://www.freep.com/article/20131212/BUSINESS06/312120137/Detroit-blight-Quicken-Gilbert
Detroit bankruptcy judge orders company to stop collecting casino revenue (Access to about $180 million a year that was flowing to creditors from its casinos)
Federal, Foundation, City and Corporate Investment Areas in Detroit
http://datadrivendetroit.org/web_ftp/Data_Mapping/InvestmentAreas.pdf
The Auto Industry Bailout
http://useconomy.about.com/od/criticalssues/a/auto_bailout.htm
@Donald Hendricks
Post: New member from PNW
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Post: Brand spankin new member from West Bloomfield, MI
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Post: Investment Rental on Busy Street and Flood Zone
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Would pass and look for something else unless the numbers or deal is really extraordinary. The busy street and being in a flood will always impact the home value and/or lessen the amount of buyers or renters. For the right price though it may make total sense.
Post: Occupied or Vacant
- Investor
- Irvine, CA
- Posts 39
- Votes 3
Originally posted by @Arthur Banks:
@Andre M. Good suggestions. How do you work the numbers backward to come up with your guesstimation?
A rough swag not sure what your assumptions were to figure your ROI but just went backwards from your info.
cashflow / rule% = Cost & (cashflow*12)/ROI=Cost
Occupied: $627 cash flow ROI: 33.23% 2% rule: 2.76%
627/.0276 = 22717.39
(627*12)/.3323 = 22642.19
Vacant: $692 cash flow ROI: 34.63% 2% rule: 2.64%
692/.0264= 26212.12
(692*12)/.3463=23979.21