All Forum Posts by: Ecaterina Katerina Morosan

We would recommend going with more conservative numbers in this case. Average studio square footage in NYC is 450sqft. Anything that is smaller requires a lower than average rental price.

Also, looking at the floorplan, the architects could've swapped the WIC and the bathroom and move the entrance slightly to the left. It would be more practical and convenient. Based on my experience from working at a development consulting company in NYC, this is one of the first things we would point out to the developer. Curious what building this is.

Let us know if you need any help with a deeper analysis.

Best,

Katerina

I agree with @Abel Curiel on using more conservative numbers in this case. Average studio square footage in NYC is 450sqft. Anything that is smaller requires a lower than average rental price. 

Also, looking at the floorplan, the architects could've swapped the WIC and the bathroom and move the entrance slightly to the left. It would be more practical and convenient. Based on my experience from working at a development consulting company in NYC, this is one of the first things we would point out to the developer. Curious what building this is.

Quote from @Nicole Heasley Beitenman:

@Ecaterina Katerina Morosan @Jeff S. Can either of you recommend some resources to learn more about getting into private lending?

 Nicole, "Lend to Live" is a great book.

But what mostly helped me is networking with people in the industry such as investors, lenders, agents who shared their experience and contacts. Feel free to pm me and we can hop on a call

Oh wow! I've heard of this strategy years ago but haven't met anyone who is actually using it. How do you get your credit line increased up to $100K with each bank?

Hi John, where is it located?

Hi Benjamin, this was an interesting read for me. I spoke with an agent who switched from Redfin to a regular brokerage, and he quit selling real estate after realizing that he has to be his own boss and run his own small business. I agree this might be a good option for students. And also it's a great option for those who are not ready to handle their own lead generation, marketing, branding, accountability, conversion, closings, analysis etc. It takes A LOT to become an agent, some people don't realize it. I personally think you're ready to go solo :)

Quote from @Jeff S.:

“Normally flippers who borrow your money offer 7-10% annually.”

Where did this come from? Loan rates are regional, @Ecaterina Katerina Morosan, and it’s you who should be setting your terms . The prevailing private loan rate now for flips in Southern California is around 10% annualized plus a few points, for a 6-month loan. As the large HMLs have had to raise their rates, the pressure on this is increasing.

All borrowers say they want to keep their investors and lenders happy. Never met one who didn't.  If 8-10% per transaction makes you happy, then great. Don’t change a thing. Understand, however, you could earn more. Much more important is your relationship though. We value ours with our borrowers more than a few percent and go out of our way to ensure it's they that are happy.

Works both ways.

Hey Jeff, thanks for your input.

To respond to your question "Where did this come from?" - this comes from me communicating and working with flippers in different markets for years. 
And yes, I've had bad experience with flippers who couldn't maintain the promise of "keeping their lenders happy". The experience I described above is the one I'm actually happy about, and this is why I decided to share it with fellow BP members. It is important to follow the right people and not only predicted numbers and promised returns when it comes to investments, and I've learned it based on my own mistakes. 

I lended cash to a flipper in California. He mostly does smaller projects that require upgrade and sometimes full gut renovations. He offers 8-10% per transaction which is higher than the average market can offer.

Normally flippers who borrow your money offer 7-10% annually. This guy says that he wants to keep his investors and lenders happy and is willing to offer 8-10% per transaction. In California, you can close on 2-3 deals per year depending on the amount of work needed.

Is there risk involved? Yes, just like with any investments. And I've worked with other flippers before but never shared my experience. With this particular flipper my experience has been great. His assistant is sending me updates and pictures every week, and I keep reinvesting my money with him.

Hey Hope! Welcome to BP. I'm in South Florida as well. Would be happy to connect

Hey Oliver! 

Our team organizes lots of investor meet ups and trainings/consultations. Feel free to reach out