All Forum Posts by: Kyle N.

@Jimmy Kang, a lot of good advice on this thread! Have you thought about finding a partner in one of your focus areas vs. coach/mentor? In my opinion, a good partner will be your best coach/mentor. You're in the deal together and you'll be guided the whole way through the transaction. It is getting much harder to find the right deal to make the BRRRR work, but they're still out there. I have 20 units in the Rockford area (Machesney Park) and I would be happy to answer any questions about the area, and I would also be open to partnering on a deal. But, like I said, the deals aren't easy to find. If you do go this route, make sure you thoroughly vet out your potential partner and have a solid agreement in place to protect both of you. Never send money directly to your partner, make sure it goes to the title company, or Joint-Venture checking account where you both have visibility of where the money is going, and what it's spent on. Best of luck as you get into the game!

I've got a potential deal in the small town of Stockton, IL in Jo Daviess County.  Are there any property managers or investors that work that area?  I would love to connect/partner up!

I moved to Sycamore, IL two years ago, and I'm looking to connect with more local investors to collaborate and help each other out!  I found an old thread for when there was a meetup attempted, but I don't know if anything ever happened.  So I'm throwing this out there to see if there is any interest.  It would probably be around 6:00 on a Tuesday night at a local restaurant.  Let me know! 

Anyone is welcome, hopefully we can get a diverse crowd together to work with each other!  Cortland, Creston, Maple Park, Malta, Waterman, Kaneville, Elburn, Virgil, Lily Lake, St. Charles, Campton Hills, Wasco, Rochelle, Burlington, Hampshire, Genoa, Kingston, Kirkland, Monroe Center

 @Nate Shields did anything ever happen with this?  I moved to Sycamore 2 years ago and looking to connect with some local investors.  I would appreciate any info, otherwise maybe I'll start something.  

@Mitch Messer and @Tom S.

I think the reason they're talking to me and entertaining the low down payment and low interest rate is because I used their original asking price.  She even told me that the price was negotiable, but I kept that $240k number.  I also met with sellers over the weekend and showed them my buying spreadsheet and showed them all of the variables that we could change/adjust.  I also told them that if they wanted to sell with a realtor, that would be quicker and they would get a lump sum of cash after paying off their existing note.  I also explained realtor fees, closing costs, and capital gains tax.  I try to live by the Zig Ziglar quote of "You can have anything you want, If you first help enough people get what they want" I'm not even sure I want this deal, but I'm excited over how much I've learned from this chat and by taking action to get to this spot.  It can only get better from here!  Thanks Everyone!!

@Jay Hinrichs, I totally agree that this is not a life changing deal by the numbers, but it could be a life changing deal as it's my first creative finance deal.  I'm kind of learning as I go and only expect to get better as I progress.  Thanks for the insight!  

@Mitch Messer, I appreciate the feedback and the thought provoking you've inspired in me! However, I'm looking at the deal a little differently, but please let me know if you agree. I agree with your numbers, but what if we take your operating expenses of $12,720 and add to it a monthly mortgage pmt back to the seller of $928.53 ([email protected];30yrs;$5k down) for a total of $23,860 per year operating expenses. Gross income of $25,200 - $23,860 expenses = $1,340 NOI

$1,340 (I agree-not much) NOI on $5k down = 26.8% COC That's pretty not awful, and those are as-is numbers.

Current rents are at least $300 below market on both sides, so if I only bump rents $100 each side brings in another $2,400 of income, which translates to nearly 75% COC as soon as I take over. If I bump rents on both sided $100/year for 3 years, my year 3 income goes from $1,340 to $8,540, or 170% COC per year.

Please...someone show me what I'm missing!  Or if anyone has ideas on how to execute.

I've got a potential duplex deal where seller owes about $115k at 2.5% and is tired of the headache.  They just want it gone, and are open to me making payments to them.  The initial price they threw out was $240K, which is probably fair.  I feel I've developed a solid relationship with seller, and I want to help them out, but need to find common ground where we both win.  I've never done any sort of creative finance before.  I would obviously like to keep the [email protected]%, but curious as how to structure terms for the remaining $125K back to the seller.  How would you structure, or do you have any good resources (Posts, podcasts, videos, books) that would help paint a clearer picture?  

Current knowns:

Rent: $1050 each side (at least $200 under market rent)

Taxes $4,500/yr

Insurance: $1,500/yr

Tenants pay all utilities, mow and snow

One idea I have is to offer full price of $240k payable to the seller over a 30yr period at 2.5%.  That way my payment to them is almost double what I anticipate they are paying on their current mortgage.  After my conservative estimates, it barely cash flows for me, but I could bump rents fairly easily to help that.  Seller made a comment that this duplex was her 401(k), so by me making ~$950/mo payments to her for 30 years might do the trick?  I would have to figure out the details of ensuring sellers are paying the bank, or maybe I make the bank payments and send the remainder to the seller.  

Any guidance would be greatly appreciated!!

I’m looking to cash out refi up to 10 properties for 30 yr fixed rate. Can anyone recommend a lender licensed in both IL and AL?

@Tamar Hermes I bought last two with connections I made on here at BP and got better deals than RWN was offering.