All Forum Posts by: Dassi Lazar

Depends how risky you want to be. If your investment will make you more interest than you are paying for debt it technically makes sense to invest. 

I started off taking out a HELOC on my home. I tell this to many of my friends and they can't stomach it. For me it was the only option to building wealth. 15 properties later and own over 2.5 mil worth of properties I am happy with my decision. I have a whole lot more debt that I started but producing some nice cash flow while paying these properties are on a 30 yr mortgage.

@Daniel Adu-Boateng

When flipping it depends where the market is at. If there are no deals to be found and another investor will sweep it up then don’t keep pushing.

My attitude for rentals is different. I’ll go higher because I don’t want to play the game of always looking I was to be closing. And if my return is a little less I’ll make it up in a month or two. My goal is to have the property paid off in 30 years. Each dollar won’t matter today.

@Reid Mathews what's your goal? I buy properties for several reasons not just a cash on cash return. If that's all your looking for and your happy with 6% talk to me I'll give you more😉 SerIously though

Reasons to get into investing/rentals:

- tax benefits

- long term appreciation

- leverage your money (some of my properties I have zero dollars/even pulled money out and making $400/door).

- higher returns (more headaches/work involved)

-etc...

Alright let's talk rental turnovers.

I started building my portfolio 1.5 years ago and haven't had any turnovers yet. I want to be prepared for what is to come.

How do you handle turnovers? Has anyone had success with filing an insurance claim? I asked my insurance broker and he said that's not claimable... Does this insurance excist?

Tell me all your tips for your turnovers🙏

@Bryan Wegman Yes I do the BRRR method. I have invested some money (not that much comparatively) in some deals (for example if I love the area I will bid higher and keep some money invested). Each property is different. I have 2 properties that appraised for $20k higher than expected so I was able to pull a nice chunk of change out of it. My mortgages (includes taxes and insurance) are higher on these two but still at a number that I am comfortable with ($1200/month and rent is $1800/month - I made between $20-$30k on these deals I have 2 of them at this number). Other ones I have pulled some money out, broke even or keep some money invested. I started off with a $90k HELOC so my first one I kept $30k of that invested in the property.

I like creative financing. I am under contract on a deal now that my lender is letting me purchase with 20% in an LLC with a 30 year term. I found a property that is rental ready. Asking price is $125k. I came in at $110k (fully renovated the property is worth $160k). Seller countered me at $118k. This wouldn't work doing the BRRR method. So I spoke to my hard money lender and regular lender that I refi with these. My regular lender said he can do a purchase with a minimum of $125k purchase price. I am having seller pay transfer taxes and I raised my commission by .5% (I'm a REALTOR), and they are giving me 2% seller help. So now I need to come to the table with $30k. I asked my hard money lender if he would give me a short term loan on this $30k. We have a great relationship so he agreed to give me the $30k with $2500/month payments for 13 months. ***Note it is much easier raising $30k than bigger numbers. Yes, this will be eating into my cash flow (I have other properties that will take the hit during this time) but it is allowing me to buy this property without using any of my own cash up front and in 13 months I will have a low mortgage $800/month with rent of $1500+/month.

In 4 years the down payment will be completely paid off by the rent and my profit on this property will be higher than other properties I have.

FYI - my original offer was without financing help and a quick close. The seller will be walking away with an extra $2k in his pocket for a longer closing. I will be saving money on the refis and time it takes to renovate. I will be able to have a tenant move in ASAP. 

I am a big believer in creative financing. 

@Steve Vaughan well said. I respond to all my maintenance requests. It doesn’t need to be all or nothing.  

@Adrian Gonzalez that's a great idea! Right now it's too much time to do that. But when I have 100+ units it might be worth while.

I know that a lot of the big players throw parties, back to school events, etc for their tenants. There is an element of building a relationship. 

@Phillip Massey I'm all over SFRs. I started 1.5 years ago.. I have 9 right now and 4 under contract. I do areas with an arv of $150k+. I am not finding any multis that make sense return wise. I like a specific county. Its all a numbers game if a multi makes sense I would go for it but haven't found that even close. I also love being a 100% owner verse raising tons of money and sharing equity on these multis.

@Steve Vaughan I think agree with you. Sometimes it takes being different then everyone else and not doing the norm to become that excellent landlord.