All Forum Posts by: Scott Hollister

Welcome @Gary J.,

We have our meeting tonight, March 7th at 6:00pm at @Kit Crowne's office, 110 main street, Manchester, CT 06040. It starts at 6pm and will end at or before 8pm tonight. Hope to see you there! 

@James Denon

You have a lot of unknowns going on with this potential investment. You have already told us why not invest in this:

1. It is site unseen. Not even a walk through contingency... 
2. "50k repair or is it 250k repair?" I don't see how you can make a realistic offer unless you budget for everything new on the inside, down to studs. But what if there is a structural problem? 
3. Neighborhood is rough
4. Fish joint next door
5. Drug deals
6. Crime reports
7. No parking
8. Not being able to attract good tenants

My advice would be to stop trying to talk yourself into this "investment". Even if numbers look great, you still have to factor in the above mentioned. 

Hello @Hasam Ashraf,

Why not perform the rehab yourself? Im assuming the work is hired out for 20k? Seems like a "lipstick" flip? 

Hello @Mark Hayes,

Come to our next meet up to network and connect with others:

https://www.biggerpockets.com/forums/521-events-and-happenings/topics/412753-central-connecticut-rei-march-meet-up-manchester-ct?page=1#p2586861

We always have a great time! 

@Jim Piety just updated with a link! Thanks for letting me know Jim! 

Hello BP, 

Come network with other Real Estate Investors from Connecticut, Massachusetts, Rhode Island, New York, New Hampshire, and Vermont! (400 seats available) On April 6th we will bring together residential and small balance commercial property investors, REO experts, industry experts, and other real estate professionals for a night of networking and education.

Attendees will be treated to an Italian dinner and refreshing drinks as they connect with industry peers, develop new business partnerships, meet prospective clients and catch up on key trends and topics in the real estate investing markets.

Please enter "BiggerPockets" in the discount code box for 20% off! 

Drink Tickets: Registered guests (age 21 and over) will receive two complimentary drink tickets for the event.

Prize Drawing: Attendees will have the opportunity to win a Free Appraisal for a 1-4 Single-Family Home with a $650 value which will be raffled off at the end of the event.

Evening Agenda

Early Bird Networking
5:30 - 6:00 PM

Networking Dinner Begins
6:00 PM

"REO Inventory" - Panel
Featuring: Rebecca Smith, David Mackenzie & Josh Martin
7:00 - 7:45 PM

Networking Break
7:45 - 8:00 PM

"Fix and Flip Investing" - Panel
Featuring: Jonathan Gineo, Tom Truong, Scott Hollister & Jeffrey Tesch
8:00 - 8:45 PM

Closing Remarks & Prize Drawing
8:45 - 9:00 PM

Please ask any questions below or contact Erica at [email protected]

Directions: RCN Capital in TicketNetwork Event & Dining Complex 

75 Gerber Rd East
Suite 102
South Windsor, CT 06074

Yes @Timothy Jacobson, set your notifications for Connecticut and you will get a notification of the meet ups. 

Hello @Ryan Tetter, 

I think the article is interesting. I think the author is wise for steering the buyers away from real estate for now. They should not lock up any more capital in their current position. The risk is very high and here is why:

• They are asset rich and cash poor. 
• They took a home equity line of credit. ...and for what? I only recommend someone take a HELOC when you have a higher and better use above the costs of that line. And the method of investment has to be repeatable. That means you can take "your" money back out. 
• They have one loan that is interest only. They should look into consolidating that into another favorable loan. They would have to weigh out the benefits seeing how there is only 6 years of payments on the London apartment. 
• They pay 3k in rent. If they must rent, they can find cheaper rent while they hunt for an investment, not a home. 
• Like @Brent Coombs said, no sympathy for someone who spends $1400 on eating out. 
• Also, their grocery bill is astronomical and it should be cut drastically while still eating healthy food. 
• They have a financed car. Millionaires don't finance cars and seeing how they make $17,500 a month, I am not sure why they choose financing. (Besides being cash poor) Read Millionaire Next Door for reference. 

I agree with the "Pro" that this couple should build up their reserves. (I loved the Total Money Makeover by Dave Ramsey. Everything he said except for real estate advice.)

She also gives more wise advise: 

• Build up reserves or safety net. 
• Have more cash.
• Save more money each month.
• Look at budget and cut unnecessary spending. 
• Make saving automatic. 
• Maximize contributions.
• Save for retirement.
• Run the numbers on their rental properties. Make sure the returns are worth the investment. 

All these things are great advice if we look at them objectively. Everyone knows that financial advice should be tailored. Now this is the part I disagree with, they should buy a "home".  This home should be an investment, not a home! 

• It could be a owner occupied multifamily. 
• It could even be a single family home with a strong exit strategy. Like a live in flip. 

Hello @Timothy Jacobson,

Glad to see another BRRRR business model. I, like you, find the cash out refinance the difficult part of the BRRRR strategy. Specifically the seasoning period.

You should come to our local meet up on the 2nd Tuesday of each month. We typically have two finance regulars. @Kit Crowne is gracious enough to host us. He is also a great contact to perform your cash out refinance. (Conventional) 

We also have @Bill Couture if you're looking for lending (more along the lines of commercial lending) Also look into portfolio lending as you grow your business in the coming years. 

Feel free to come to our next meet up! 

@Geronimo Valdez

Time of Event: 02/07/2017 at 06:00PM
Location: 110 Main Street, Manchester, CT, 06040