All Forum Posts by: Evan Polaski

@Quinton Bogle  Obviously, not in the middle of the lease term.  I do 2-3% on an annual basis, or if a tenant is already sort of high I may keep them flat for a second year, then raise 5%

@Jacob Rowland, personally I would start with an internship, somewhere slightly corporate.  The upside to corporate internships are a) there are more available, typically.  B) lets you understand the importance systems and how they help

@Gina Daggett I would head to local REIA meetings. And when talking, qualify yourself. Let them know you have cash available, you know exactly what you are looking for, etc. Respect their time and spread your web wide. Something will pop up.

But getting started is the hardest, since everyone likes to live the dream, but many people don't follow through.

Welcome @Erinn Bolden.  I always caution new investors from trying anything long distance.  If you are buying turnkey property, that can be okay with a great PM.

I have found there is no replacement for being on site nearly daily when doing a rehab though.

@Bernadette P.  Welcome.  Yes, a picture is always nice.  Also, check out the Events tab at the top to find local meetin ups around you.  These can be very helpful for people new to the industry and seasoned pros alike.

Welcome @Jeanette Yan.  

@Blake Hrabal

It depends on your structure.  If you bring your investor in as a PML, you will also need a traditional mortgage just to get going.  I do not see many houses where you can be in and out for $50k.  In this instance, the bank typically won't like giving you a mortgage because your "equity" is a private mortgage.  This also doesn't take in any carry costs during rehab before refi.

So lets assume the above.

Purchase: $100k
Rehab $50k

Down Payment: 50k from investor @ 12%
Acquisition/Construction Loan from Bank: 100k @ 5%

You finish project and it is now worth $200k
Refi for 75%: 150k in proceeds 

pay off bank loan and PML, a you walk away with the house.  

Refi for 80%: 160k in proceeds
pay off bank loan and PML, you have house and $10

@Josh Farrell Welcome to BP. I look forward to hearing how your REI ventures unfold.

@Andrew McCotter

@Joe Villeneuve demonstrates the value of leverage.  

A caveat that should be added: often times with investment properties, you need to put cash offers in to even be considered.  In these market, retail buyers are frequently "leveraging" the bank of mom and dad to put cash offers in.

So, while leverage is frequently used and can help supersize your assets and cash flow, if you are losing out on deals because you are putting in financed offers, you are still not getting anywhere.

My personal recommendation would be to put in as strong an offer as you can, i.e. cash if possible, and quick close.  You can either then work to get a bank to close a loan quickly at purchase, or refi immediately after closing to pull out 80% of the cash price.  

I would also say it depends on how stale the deal is.  I have friends that had $50k down on $7.3mm deal, and it didn't go hard for 30 days.  BUT, this was a stale deal with strong broker relationship AND very uncommon.

1% is the standard I hear.  And not uncommon can be .5% hard up front and .5% after 30 day DD, for a total 1% non-refundable.