All Forum Posts by: Mark Frattini

@Jesse Szakacs

Consider just putting it in your name for now. If you are looking for asset protection get a few quotes for umbrella insurance. I created an LLC early on and honestly it just complicated things. Make sure you understand all of the disadvantages of putting property into an LLC before deciding.

Quote from @Sarah Enero:

Quote from @Mark Frattini:

Hi @Sarah Enero

Before you get started with your renovation and upgrades make sure you ask you figure out what is going to give you the best ROI. For example, windows are expensive and don't always give you the best return. For every dollar you spend you should aim for at least 1.5x return. If you spend 15k and it only increases the value of your home by 10k then you're losing money when you go to sell. Since this is a live in flip and not your forever home just make sure the numbers make sense. They money you plan to allocate for windows and a slider may be better spent in a kitchen or master bath refresh.

Thank you so much for this! You are definitely right, to always think of ROI when planning on what to prioritize when doing a live in flip! Thank you again

Anytime!
1. Also, I would suggest playing the role of the general contractor and finding the right contractor for each job.
2. You can get all the bids you want now however they are usually only good for a set number of days and then they expire. At least you will have a general idea of costs.
3. This could go either way. Right now some trades are booked 1-3+ months out. Inflation and material shortages could get worse or they could get better. Cost of labor could go up or down. I would hedge my bet on continued labor and material shortages.

@Mark Baldwin

I would suggest reaching out to local commercial agents/brokers and offer to take them out to lunch or coffee. Make sure you have a really good understanding of what a typical day looks like. Ask if the courses you signed up for are going to help your chances. Are you already a licensed agent? Offer to work for free while you learn the ropes. If you are having a hard time getting your foot in the door you could start off by selling residential and then make the transition to commercial. 

Hi @Sarah Enero

Before you get started with your renovation and upgrades make sure you ask you figure out what is going to give you the best ROI. For example, windows are expensive and don't always give you the best return. For every dollar you spend you should aim for at least 1.5x return. If you spend 15k and it only increases the value of your home by 10k then you're losing money when you go to sell. Since this is a live in flip and not your forever home just make sure the numbers make sense. They money you plan to allocate for windows and a slider may be better spent in a kitchen or master bath refresh.

Hi @Eric Rodriguez

Are you buying this as an investment property?

Hi @Jana Craig

Start by looking at property which is located outside of the city proper. As previously mentioned the STR laws are changing and becoming more challenging to own and operate. If you want to look inside of the city limits make sure your numbers pencil out as a medium and long term rental. Feel free to connect and I can give you a list of cities and links for more info.

Hi @James Kim

Lot's of variables to consider however I suggest working with an insurance broker that has access to different coverage options and carriers for your properties. Before I started working with my current agent my rental properties did not have the right type of coverage and I was overpaying. 

@Carl N.

I've got a guy who can help. Happy to connect. 

Hello @Christine I.

Shop around for different loan options. Call a broker who can find the best terms vs a bank which is more limited in their offerings. Have you considered the possible downsides and risk to buying a luxury vacation property if we're entering or already in a recession? A multiunit LTR is lower risk, although admittedly not as flashy and shiny, and would be the better investment in todays market. People will always need a place to live. Tourism and travel could take a hit with high inflation during a recessionary period. 

You're not too late..the party is just getting started. Inventory is starting to build up, price reductions are more common and for the first time in several years buyers have a shot at being able to negotiate the terms. Experts in the finance space believe that once inflation in under control rates will fall again. Look into a 7/1 or a 10/1 ARM which are currently in the 3% range. The other option is to go with a 30 year fixed at todays higher rate and refi when/if they come back down. As a buyer it is a great time to take advantage of some of the fear that's out there.