All Forum Posts by: Michael Keane
Michael Keane has started 22 posts and replied 48 times.
Post: First Time Partnership & LLC Formation
- Long Beach, NY
- Posts 50
- Votes 15
Kaylee, thank you! Any hints or teasers about the upcoming BP publication? :)
Post: First Time Partnership & LLC Formation
- Long Beach, NY
- Posts 50
- Votes 15
Hello BP Community!
I've been a solo investor in multifamily and now I am bringing in 3 partners for my next investment deals.
Looking for recommendations on resources (books, guides, etc.) on forming partnerships and LLCs for real estate investing.
Any suggestions or guidance are welcome and appreciated.
Thank you!
Post: Seller Financing: 0% Down Payment?
- Long Beach, NY
- Posts 50
- Votes 15
Quote from @Eliott Elias:
Why not? You never know the sellers motivation, what I have found is sellers are not educated enough on owner finance (especially if they have a loan on it) and the idea of it throws them off
Thanks, Elliott.
Post: Seller Financing: 0% Down Payment?
- Long Beach, NY
- Posts 50
- Votes 15
Quote from @Andrew Postell:
@Michael Keane wow, you are willing to offer 20% over the value of a house in a declining market? That sounds crazy. I would be trying every OTHER strategy besides that right now but you can certainly do it if the seller understands what you are offering. As mentioned above there are several things to the seller financing part....and to me, having a seller that has the ability to do what you are asking and then actually understands what you are asking will be very critical to it working.
Post: Seller Financing: 0% Down Payment?
- Long Beach, NY
- Posts 50
- Votes 15
Quote from @Charles Carillo:
In my experiences with seller financing; there are 3 main parts to the deal. Interest rate, down payment and price. You need to find out what is most important to them and edit the other 2 so that it works. For example; the interest rate (cashflow) might be most important to them; give them a higher rate and then offer a lower price and lower down payment. If the most important part for you (down payment) and them are the same; the deal will not work out.
Post: Seller Financing: 0% Down Payment?
- Long Beach, NY
- Posts 50
- Votes 15
Hello BP Community!
I am looking to purchase an investment property (duplex) and will be entering into discussions with the owner about a possible seller financing deal. I am willing to offer up to 20% above the asking price in lieu of making a 20% down payment.
Thoughts on this approach? Any sellers or buyers out there who have successfully closed on this type of deal?
Post: Ticket Needed - BPCON 2022 San Diego
- Long Beach, NY
- Posts 50
- Votes 15
Hello BiggerPockets Community:
I am looking to purchase one (1) ticket to the BiggerPockets Conference in San Diego.
Please reply to this if you have a ticket to sell.
Thank you!
Post: HELOC on a BRRRR in lieu of Cash-Out Refi?
- Long Beach, NY
- Posts 50
- Votes 15
Hello BP Community!
I have completed rehabs on a small multifamily (duplex) investment property and the units are rented and cash flowing. Not I am getting ready to move to the next step in the BRRRR: Refi.
Currently, I have a 30-year fixed at 3.625% from the initial purchase of the property.
With increasingly rising interest rates, if I do a cash-out refi, I'll lose the low interest rate.
Does anyone have experience with taking out a HELOC on an investment property in lieu of a cash-out refi?
Advantages? Disadvantages?
Welcoming insights on this...
Thank you!
Post: LTV and Cash Out Refi on Duplex
- Long Beach, NY
- Posts 50
- Votes 15
Thank you Torrell!
Post: LTV and Cash Out Refi on Duplex
- Long Beach, NY
- Posts 50
- Votes 15
Hello BP Community.
I purchased a duplex for $260,000, putting down 25% ($65,000) on a conventional loan (30-year fixed, 3.625%) of $195,000.
$56,000 of the $65,000 down payment was a HELOC on my primary residence. The remaining $9,000 was cash.
After rehabbing both units, I anticipate ARV to be about $370,000.
When in comes time to refinance, the principal balance on the loan will be about $192,500.
I understand the limit is 70% LTV for a cash-out refinance.
During the refi, will lenders take into consideration the fact that I used a HELOC for part of the down payment during the original acquisition? Will this affect the amount of equity I can cash out?