All Forum Posts by: Eric Telese

This sounds amazing. What does default mean- would rents only be covered if tenant declares bankruptcy or even if they default on their rent payments?

We are currently invested in a Riverdale duplex but always looking all over the Atlanta area. We are mainly focused on cash-flowing properties, with potential market appreciations being just a bonus to us. 

If the property is hitting our benchmark numbers for monthly cash flow $ and ROI, were good with it, regardless of the price. Unfortunately, nothing on the MLS that meet these criteria, so we are trying to source more off-market deals like the one we picked up.

What kind of proof of funds do you need for auctions? Can you use hard money lenders?

If she owns or has majority equity in the home, would she be open to seller financing? You would minimize your out of pocket expenses up front. Many ways you can structure that type of loan.

Seller financing has always interested me and I hope to utilize it at some point in my investing. 

Hey everyone!

I have a question on a creative financing idea that I have been told about. I live in NY and wondering if this situation would be doable/legal:

I have access to a very distressed home that I want to make my primary for a few years. I'm hoping to be able to agree upon $300k (very, very cheap for where I live). I could then ask them to increase purchase price to $350k but with $50k seller credit at closing (they still get their agreed $300). Bank lends me $350k and I put down 5% ($17,500) with a small $105 monthly PMI payment. Plus probably $20k closing costs brings me to ~$40k out of pocket. Now i get the $50k credit at closing that not only covers my DP & closing costs, but I get paid $10k and can use that on repairs. I would have 5% equity in a home that will easily be worth $100k more after some easy repairs. Which then brings my LTV to say 75% and I could even get the PMI dropped depending on the lender if I pay for a new appraisal after capital improvements.

It sounds like an amazing idea but also something about it sounds sketchy to me. I was just made aware of possible seller repair/closing credit caps. I am trying to find out what percentage those are here in NY, because that would throw out the $50k credit idea.

The house is really a complete rehab and the seller will not perform any repairs. I might look into renovation loans but I wanted to do most of the work myself to save substantially and I'm not sure that is allowed with those loans. Also the rate would be higher.

Any other opinions on how to make something like this work? 

Looking to book a trip down to ATL in end of May. We currently own one duplex and want to network with investors, contractors, etc down there. A new brewery is a plus! How often do you guys meet?

@Michael Ealy LLC sounds the way to go. We are fine setting up the LLC in NY even though we will be purchasing in Georgia, right?

Hi all. First rental deal in Atlanta metro area is finally under the belt and now looking for the second.

We are looking for hard money lenders to fund the purchase + rehab. (If anyone has some lenders to recommend that would be great!) They require us to be a corporation to lend to.

We are investing in Georgia real estate, while living in NY. Should we become a corporation through NY or through GA state? Do we need an attorney for this process? Lastly, which type of corporation should we chose as small multi-family buy and hold investors?

This topic is pretty new to us so thank you for any advice!

@Rich V.

@Matt Wood is your man! We are closing on our first deal this week and he has been extremely helpful through the entire process. 

@Matt Wood has been excellent for us as out of state investors.