All Forum Posts by: Ed D.

Hi everyone, I am under contract for 2 REO properties at the moment and wanted to ask for advice on the best ways to finance these? They will require rehab work. The properties are both located in NJ. 1 of the properties is $70k but needs around 80k rehab full gut. The other is $70k but needs $60k rehab. I do have the cash to put up most of the purchase price but am looking to use as much leverage as possible and use my as much of my cash for other deals as well. What are some of the financing options you guys have used for similar deals? I can also do conventional (203k, FHA, VA, etc) for 1 of these as I may house hack it. But am not sure of what all the available options are for rolling the rehab and purchase price into the same mortgage without me coming out of pocket for a lot of this cash. Now keep in mind that if I needed to I would buy 1 cash outright and put the rehab money. But as I said, I want to keep my cash, or at least most of it, and use it to purchase other deals. Thanks in advance appreciate the assistance.

20 deals in NJ that are multis?

Hi, Congratulations on making the plunge into the world of REI. I'm fairly new to this myself but have a great CPA that's located more closer to central than south jersey. His name is Peter Demien and also owns his own firm. He also takes care of clients from all over not just NJ since most documentation can be done online. If you do give him a call, tell him Edwin Diaz sent you as a referral and he will give you a discount. Google him since we can't post Contact details on this. He's located in Cranford NJ Good luck, Edwin

What goes up must come down. Yes there will be another housing crisis except it's not really a housing crisis it's a capital markets crisis. Housing is just a symptom. The real issues are with capital and banks are going back to the way they were prior to 2007. The lenders are starting to lend again and subprimes are coming back. I don't cover mortgage backed securities anymore but a couple of years ago we were selling mbs and cds in the investment bank like it was 2006 all over again. Also, there is some turmoil in the markets as I write this. The high yield corporate debt is a bit unstable and may cause some panic in the future. China is a concern right now. If markets crash and banks get hit, the little guys will not get mortgages nor have that extra cash to buy. So there will always be cycles of ups and downs. Now aside from this, I'm not sure about the Atlanta market but markets turn and there is never a run forever.

How folks, Hope you are all doing great. So I wanted to ask about your thoughts on keeping your network happy. I've got a few people who I have strong relationships with and they are great at getting me leads on good deals. I'm working on a deal at the moment where the listing agent is outside of my network but is friends with someone within my network. Therefore, in order to make it enticing for outside listing agents or others who may control the deal, what system do you guys have to incentivize those who you haven't worked with to provide you their full attention? I have a few short sales that I'm looking at but the listing agents are pushing this to other buyers in some cases and they usually give 1st priority to their direct clients rather than give it to someone else as they make more money. Is there a set percentage you you guys work with that you say ok this deal has x cap rate or such, the commission or what I can give the listing agents is Y? The people within my own network get their set commissions and I'm not too concerned about them but just to make it more appealing for those my network reaches out to. Thanks everyone.

Hi, I'm no expert but I had this same discussion with my CPA and he advised me that it's best to have a maximum of 2 properties per LLC to limit your liabilities. So if you have an extensive portfolio it would be multiple LLC's holding 2 properties a piece. Then place them under an umbrella or holding company. This also will have some administrative fees so the more LLC's you have the more money it costs. But I would say you want to limit your liabilities by not having too many properties in 1 LLC. If someone sues they can go after everything in that LLC. Hope that helps. But I'm sure there is better advice or a simpler way to do it.

Hey Robert, Welcome aboard and congrats. I'm in a similar situation coming from a wall st background and have exposure to mbs analytics amongst many other things. But am just embarking on this journey now building my portfolio and establishing a foundation. Have a couple of deals lined up but nothing finalized or closed yet. I'm also from NJ. Perhaps we can network and build a relationship. Glad to see someone with a similar background and same goals. Cheers, Edwin

Hi everyone, Hope you all are doing great. First, I want to thank the folks here on BP it's wonderful to be able to speak to so many people who are willing to share good information with each other. I come from an investment banking background but am now focusing on REI. I am currently looking to form my legal entity for my REI company and one of the CPA's that I spoke to mentioned that an S Corp may be a better fit for me than an LLC. Because of the passive income of an s Corp vs the LLC which may be individual income taxes. Not sure if it's because I'm single and don't have a partner but was wondering if any of you have experience in this area? Or what have you done for your companies? I plan on working buy and hold strategies to build my portfolio and may even take advantage of some rehab or fix and flip. My goal is to take advantage of any tax rules in favor of either the LLC or s Corp to allow for lower liabilities and increase the cash flow. Thanks in advance guys. Cheers, Edwin Diaz

I was in search of the same and a friend recommended someone who is his CPA but my friend is not a REI. Am waiting for the CPA to call me back and will post his contact if he works out.

I'm on 5th and 40th about 1 block from you. Let me know when and where. I'm in the city 3 days a week and on Mondays and Friday's I either work from home or from the Jersey City office. I'm leaving to Brazil at the end of January for a month to close a deal with the investment bank. So am looking to get some of my own deals advanced before I leave. Let's see if we can meet soon.