All Forum Posts by: Michael Doherty

@Caleb Heimsoth 100% right on that, would be very awkward and set a bad reputation if it didn't. For that reason alone I would be hesitant to partner with him. But if a no brainier deal comes up, it's another option which didn't exist before. 

All valid points. To answer @Jim Goebel I am probably in scenario 1 because I like talking about real estate in general, not necessarily about my success or deals but answering other peoples questions. If they inquire about my deals, to your point Jim, you have to build credibility so getting into specifics may be appropriate. 

@Caleb Heimsoth take this for what it is but... just last week after discussing some potential deals with a co worker who is well-to-do, he actually admitted he has been looking to invest passively from a diversification standpoint just without all the work. I am now looking at deals which I could not entertain before because I know I potentially have the capital. My point being, this wouldn't be possible if I had not brought up my past deals/experience. I wouldn't completely keep silent to co workers or anyone for that matter but rather gauge the person and play it by ear. Appreciate all your responses and thoughts. 

Hi all,

Generally speaking, do you think it is a good or bad idea to discuss your success in real estate with friends, family and co workers? Discuss not in a gloating or bragging way but talking about specifics of past or current deals like purchase price and cash flow. Let me explain. 

Scenario 1: You let everyone know you are a real estate investor, they know it's your full time occupation and you are doing very well from a financial standpoint. You've divulged how many houses/units you own and perhaps the cash flow from those houses and you tell other's they can be successful too with hard work. The problem here is you may receive UNWANTED attention and could lead to headaches down the road.

Scenario 2: You fly under the radar, you let people know you do real estate full time but keep to yourself and never get into the specific financials of the deals your doing. The problem here being, by not promoting your success and passion for the industry you may lose out on connections, private investors and potential future deals. 

Obviously both scenario's have their pros and cons, but generally speaking, as people build a their portfolio's what scenario do you find yourself in and why? 

If seller financing is on the table I would absolutely pursue that. It sounds like it needs a substantial amount of rehab (to your benefit) so if you can get into it for a low price with seller financing that would be ideal. Then rehab, cash out refi and you could be into it for nothing. I am in negotiations now for a property seller financed and can keep you updated on the terms to give you an idea of interest rate, loan payoff ect..... if your interested. 

Is the property in South Eastern, Ct by any chance?

Currently rented through 6/30/2019. Large colonial in a wonderful neighborhood that offers a great layout with plenty of space. Have tenants pay mortgage. 

Walk to boating, swimming and all the fun at Andover Lake from this large colonial that is a great value in a quiet and serene neighborhood. This home boasts a large layout with plenty of space, including a ¾ finished basement. Expansive backyard and plenty of privacy! New roof, hot water heater, and boiler installed in 2011. Fresh laminate flooring on second floor. Driveway repaved in summer of 2016. This house has solid bones and is just waiting for your personal touches! Includes snowblower, chainsaw, and a/c units!

@Peter LaBreck I started with just friends and family, people you know and have a personal relationship with. I will say after it makes it easier if already have a deal or 2 under your belt as they can see the success you are having and want to be a part of it. 

@Peter LaBreck I am in the exact situation as you- bought first property using FHA and now looking for the 2nd.

After reading a lot of posts and articles, I think the most feasible way to acquire that second unit is BRRR. Find yourself a hard money lender, portfolio lender or private investor. Many will do 80% LTV and 100% of the rehab. Just make sure the numbers work when you cash out refi.

The advantage here is obviously you aren't breaking any FHA rules, and you can hopefully recoup most of your down payment or investors down payment back if you run the numbers right.

For example. While currently living in my FHA purchased duplex, I found a private lender who will do 80% LTV, 100% rehab for 10% interest and 2 points at closing. I am currently looking for deals where the numbers will work to cash out refi get back my down payment and pay back my investor.

Hope this helps. 

I would suggest kill 2 birds with one stone and buy a 2,3 or 4 family and house hack. You can get the benefit of having a rental property with using very little o f your own funds 3.5% to be exact. Use an FHA loan live there for 1 year and move out and repeat the process.

@Nghi Le Appreciate the insights. The lender I was talking to was a conventional lender and he required 25% down for an investment property. I have some money saved up but not enough for 25% down. I reached out to some friends and family to help with the down-payment and they said they would gladly lend me 5-10k to help. 

After mentioning this to my lender he said the funds would have to be in my account for 60 days which took me off guard. I don't want to tie up someone's funds for 60 days while looking for a deal. In a perfect world I would find a deal, then get private money for (part) of the down-payment and move forward with conventional financing. My idea was to pay off my private money investors with the cash flow generated from the property over the course of a few years. On second thought however, it may make more sense to just save up the 25% myself and BRRR a house to repeat and scale.

@Jamaal Johnson The 5% equity was in regards to my current Multi. I brought that up as an example of having to use a hard money lender on my second property because I do not have enough equity to Cash out REFI or use HELCO (hope that makes sense).

So in other words... if you were currently house hacking a Multi you bought last year with FHA loan but wanted to buy another Multi this year..... What method/strategy would you personally use to purchase your second house? Would you save up the 20-25% for down payment on Hard Money Loan and do cash out REFI or would you pursue another strategy?