All Forum Posts by: Kyle McCorkel

@Kerry Baird

Understood. But that’s what I mentioned at the end of my post... the cash out refi has no seasoning period but the restrictions are prohibitive to pulling out all of your investment if you are doing a rehab.

@Aaron Winters

Here’s what I do, and it seems to work well. I use myREIpro.com

I build a list in Excel (one by one, like you said) then utilize an import function in the website. You can also add them one by one within the website and it looks up all the property info.

Once the list is in the site you can generate letters or send out postcards. If you do letters you could do a mail merge to print envelopes to save time. Or hand address to increase your open rate.

They have postcard templates or you can build your own. I used Canva to build my own.

I’m not affiliated with either service, just a satisfied user!

@Daniel Soovajian

The seasoning period applies whether you purchase with cash or a loan. This is the case with conventional, Fannie/Freddie loans. I believe it is 6 months but certain banks might overlay additional restrictions up to 12 months.

I use a portfolio lender which is far superior to conventional. Significantly less guidelines as it is more relationship-based. And there is no seasoning period with a similar amortization and interest rate as conventional.

Others have mentioned the delayed refinancing but I really think that rarely is a good option. You can only pull out maximum what you bought the property for.

@Christopher Lane

You could use private loans or HELOCs (or personal lines of credit) as well. These are nice because you don’t need a bank to underwrite the deal prior to the buy.

If you are planning to refinance later talk to the lender now to make sure they are on board with your plan.

@Eric Kenon

Congrats on your first deal!

@Nathan Rea

I would just make sure the agent understands you want them to represent you as well. This “dual agent” situation gives them double the commission and a little more incentive to help.

@Savannah Gates Do the math on your return on investment and you will find very quickly that a leveraged property is much more lucrative on an ROI basis. The property should be well selected and a good cash flowing deal but that is a separate discussion. The bottom line is you would do better investing in a low cost index fund than paying cash for properties. You simply must use leverage to achieve outstanding returns. People are scared of going into debt but you must understand that you are using the tenants money to pay it off and the property is worth more than your debt. Keep a healthy cash reserve (at least $10k) in case of issues, add to this with your excess cash flow, and you’ll be fine.

@Tandi H. I think your maintenance should be at least 10% of rents, which would be 1800 I believe. I also don’t see an allowance for vacancy and management. Even if you are self managing you should factor in that number and not manage the property for free. That is your time and sanity and you should be compensated for it.

@Adam Krause You should develop a relationship with an agent at first. Maybe start out finding the properties on the apps and reaching out to sellers agents of those properties to set up showings. Then see which of those agents you like.

I'm looking at an off-market deal in Central PA, specifically in Mechanicsburg which is in between Carlisle and Harrisburg.

This property is 3 units, mixed use and zoned commercial.  There is a commercial unit on the first floor, and two residential units above.  I talked to my lender and I'll need to use a commercial loan.

My question is what cap rate should I use to determine the value (and offer price)? 6% feels right but I'd really like some more experienced (preferably local) guys/gals to chime in because this will be my first commercial deal.