All Forum Posts by: Michael Doherty

@Jean Torchon awesome stuff Jean- way to get creative. As a fellow realtor and investor I can agree that nothing decent lasts on the MLS. I have also used Lima One as a hard money lender on 2 projects now. Did you go right to Lima or did a broker source the company for you?

Additionally, if you could provide any context on where to go for the State's judicial website for auctions that would be helpful!

@Kyle Richey it seems like you got your answer from others here but I'll add my 2 cents. When you BRRRR and you get the new ARV a bank will most likely loan 75% of that new value (75% LTV). BUT.... you DONT have to take the full 75%. Maybe your ok with a 65% LTV and having a lower mortgage payment.

There is a happy medium between too high of an appraised value and too low. If its too high and you take a loan at 75% of the ARV you may be left with little cash flow but all your down payment recouped.

On the flip side- if the ARV is too low... you may be stuck with a good amount of your cash in the property but high cash flow. My point being... it's up to you what you would rather have depending on what the ARV comes in at.

On the most recent BRRRR I did.... I was left with $1200 cash flow after PITI and 75% LTV. I was only able to pull out 70% of my initial investment but for me...... I was OK with having some capital stuck in the deal for the extra cash flow.

There is no hard set rule of what you have to do! 

@Melissa T. I would try looking into truesubmeter.com

I personally have not done this but it seems like it could work. 

@Jared Maches Welcome! I invest in the Central Ct area, New Britain, Bristol, Manchester, Middletown and have had some success. I target C class markets and look for cash flow. I have had success flipping, BRRRR'ing and buy and hold in this market.

Let me know if I can be of any help. 

Has anyone on this thread actually received any leads from this? I’ve Requested access, joined the FB group but haven’t received anything. Maybe I’m missing something? Or perhaps they are still gathering Data and setting up everyone to receive notifications? 

@Frederic Mileo hey Frederic... I'll share my 2 cents. I have been investing in New Britain, and other Central Ct markets since 2016... not as long as some others but I have had success with it. I've also lived in New Britain for the past 4 years now and have seen the MF really pick up. There is a large fuel cell plant currently being developed which is poised to bring thousands of jobs over the coming years. I continue to invest in New Britain for cash flow primarily, but have seen some appreciation as well. 

Other towns to consider are Manchester, Bristol and Middletown. I own/have own in those towns as well and have had similar success. Let me know if I can be of any help. 

@Patrick Hagerty congrats on getting started. If your looking for cash flow consider Central ct- towns like New Britain, Manchester, Middletown, Bristol, East Hartford. I house hacked from 2016-2019 in my duplex in New Britain- it is now a great cash flowing duplex since moving out. Currently I house hack with my gf in her 3 family in New Britain. It will also be a great cash flowing asset when we move out. 

If you less concerned with cash flow and more appreciation, consider towns like West Hartford, Avon, Farmington. Let me know if you ever have any questions about house hacking or running the numbers.

@Dan Mackin 27 yrs old here- Started investing in 2016 after graduating college and living with some buddies post graduation for a year. 

1. Found BP, moved out bought a 2 family and house hacked in 2016. Saved all my $$ from my W-2 job and put 20% down on another 2 family property in Jan of 2019.

2. February 2019 realized I cant keep doing this (putting 20% down) and learned everything about the BRRRR.

3. Bought my BRRRR (2 family house) in April of 2019 and did a cash out refi in Aug 2019. Pulled about 85% of my down payment back out.

4. Recycled that money and purchased a flip in Aug of 2019. Just sold the flip last week for 47k profit.

5. Bought an off market 2 family in Jan of this year well below market price (no work needed).

6. My strategy is to buy distressed property and add value to be able to re use my capital. 

@Luis Melendez if your are doing a cash out in the name of your LLC you are going to be hard pressed to find a portfolio lender with that flexibility to be below 5%... if you do... please let me know.

Without knowing your financial situation, you may have a better time trying to do the cash out in your personal name and quick claim it to an LLC to get the better rate. I've been told that particularly in Ct, there is no due on sale clause any longer which would of been a risk previously.

@Anthony Palmiotto agreed. So the question is- as an investor, would you rather (if possible) borrow the purchase and rehab money from a private lender at say 10% but your paying interest on the entire amount from day 1? Or pay as you request the money?

In the first scenario you are essentially free to do what you want with the money and no one is 'checking on you' but you're paying for it. 

On the other hand, after talking with a few private money lenders, the better route would be to defer interest payments until the end and pay your capital plus 10% back at closing.