All Forum Posts by: Michael Chiafulio

Hello BP Community

I am a seasoned real estate investor with the majority of my portfolio in single-family rentals in Las Vegas and the Midwest.  I am looking to diversify a bit and am seeking some solid Real Estate Debt Funds (REDF).

Could any of you share any REDF that you have been satisfied with?

So far I have identified the Cetan Income Fund.  I am sure there are many more, but most of my searches are coming up with funds that are not true REDF upon further investigation.  I would like to find 2 or 3 more and go from there.

Thanks!

As far as I know, Sundae is unique with their online auction model.  Net Worth is another wholesale company.  Their set price includes all fees and is first come first serve typically.  Sometimes they will have their clients meet at the property and draw cards to determine the winner.  No bidding wars.  I am not sure if they are in your area however.

@Brad Hunton

Thanks for sharing your experience and excellent job on growing your portfolio!  The best part will be the day you quit your W2 job.  I quit mine September 2020 and haven't looked back.  Like you, I made some changes to maximize the efficiency of my portfolio (1031s and refis).  I am also now flipping more properties and have gotten into private money lending.  

Continued success Brad!

@Jay Hinrichs In my experience, Conventional and FHA appraisals are tougher than VA. VA appraisers will review comps over a larger area which can often help a property appraise higher than FHA/Conventipnal.

Excellent decision to exit this deal.  You can do much better than this.

I have rental property in my local market and out-of-state as well.  I would recommend that you start locally, as long as your market is good for rentals.  As far as I know, there can be deals found in the greater Atlanta area.  You will want to be involved in the first deal or two, maybe more.  This will give you experience.  Get referrals for an investor-friendly Realtor and contractor/handyman.  A property manager too if you don't want to manage it yourself.

Do you own the home you live in now?  If so, one possibility would be to buy or rent yourself a new place if the situation warrants it, and make your current home your first rental.  

Once you have experience and if you still want to venture out-of-state, I would not recommend a turnkey provider.  At first, I thought that was the way to go, but then I realized these homes were usually in sub-par areas.  Mostly D class and maybe some low C class.  You would be better off building a team in the out-of-state market, starting off again with an investor-friendly Realtor.  It is more effort, but will be worth it for you.

For example, you may find a $110K house from a TK provider.  You could probably find the same house through your Realtor, possibly even a pocket listing, for $90K and do $10K in rehab.  You just saved $10k right off the bat.  This is a simple example, but I see it many times.  And you have equity right away.

Good luck!

The excuse I have received the most is when the rent is not paid on time "My employer messed up my paycheck"

I started back in 2002 doing flips in Las Vegas, and then adding some buy and hold.  I have had the same portfolio pretty much for the past 8 years and looking to grow using my Helocs.

Hello BP community! As a longtime REI, I am in a decent place. But I would like to scale further and increase my cash flow. Hoping you could review my situation and provide your thoughts.

I was recently able to add two HELOCs on a couple of paid off rental properties, in addition to the HELOC on my primary. My total HELOC available is $450K.

I am looking to buy SFRs in the $125K range.  I am stuck as to whether I should:

A. Buy 2-3 properties using my HELOCs as cash purchases, or 

B. Buy 8-10 properties using BRRR strategy. Buy cash then delayed financing once tenants are placed.

My current cash flow available to pay down the HELOCs/Mortgages would be $4,000 monthly, plus whatever positive cash flow is generated by the acquired properties.

If I went with Option A and bought 2 SFRs for $250K, I could pay back $5,500 monthly towards the HELOC (plus simple interest)

That is the easier math.  Where I could use some insight is if I took a bigger leap and went with Option B.  How would that play out?

Is there a better strategy I should use then either one I have listed?

Thanks!

Hello, I am new to BP but an experienced investor with 8 rental properties in Las Vegas.  I also flip 1-2 times a year when the opportunity presents itself.

I am interested in doing a 1031 on one of my Vegas properties and buying 2 properties with the proceeds in another part of the country.  I will have about $180K to work with, and can add a little cash if necessary.  I have been researching markets and the ones that seem to stand out are Indy, Memphis, Jacksonville, Cleveland, Pittsburgh, and a few others.

I would like to get some feedback from the forum on suggestions on which markets are most favorable, and which turnkey companies are the best in those markets.  I am familiar with Roofstock (not a true turnkey I know), Morris Invest (I have a scheduled call upcoming with them), and have contacted a couple of local turnkey providers in Indy and Memphis.

My goals are long term cash flow and to be in an area with lower property taxes.  Would prefer to stay out of D class neighborhoods.

Thanks everyone, and I look forward to seeing your responses.