All Forum Posts by: Nnabuenyi Anigbogu

I guess in the end its just a personal preference thing. I have noticed that smokers tend to smell like smoke a majority of the time (at least all the ones i know and come in contact with). Some of them dont smoke in their house or apt but since their clothes can carry the smell, the apt still reeks of it.

My biggest pet peeve are those that smoke in public in front of an entrance where it is impossible to go around them. So every non smoker that wants to enter the building HAS to go through a cloud of smoke. Other than that i have no qualms with smokers and have good friends that smoke.

Another key thing to factor in is if the 2% rule actually applies in your area. I don't know anything about Waterford but if the rule doesnt apply in the area and you keep trying to use it you might not ever get a deal. 

For example, in my area of Chicago (Northside/ Albany park) it is impossible to get to the 2% rule. I dont know any area within 5 miles of where i live that would even come close. Reason is property values are too high. For me to get 2% rule on my 4-unit i would need approx 10k a month in rent which is not happening. However i can get 1% of PP in rents and that works for this area.

@Brandon Hall @Neal CollinsI really like your private investor and raising funds suggestion and fortunately i had lunch with a friend yesterday that is interested in investing some money in me. I have started down the route of trying to get friends and family to invest in my business. My only issue is that the fannie mae deal is on a short timeline since they require 10% earnest money within 2 days of offer acceptance (21K). I dont want to rush any of my potential investors and potentially lose them. I want to take a month or two and slowly convince them to lend to me. Unfortunately fannie wont wait. :)

I might pass on this deal and then focus on raising private money for future deals. I know i will need it next year if i want to continue growing.

@Steve Vaughan Thanks for the kudos. It has been a busy and hectic but fun year. You input is always appreciated and i am leaning towards stabilizing. Havent decided yet though.

Morning,

I am posting this to get some advice and also to hopefully give other newbies something to think about. 

I jumped into REI intensely in February this year. As of today i own 5 cash-flowing units (1 condo and a 4 unit) worth about 700K, I am an investor in a flip that is 60% done and just closed 2 weeks ago on a 180K flip with 140k rehab (450k ARV) that is entirely mine. So i own approx 900k in real estate. As things go i think i have done ok in real estate this year.

However i keep feeling like i haven't done enough and keep looking to push and get more deals under contract. I put in a bid on a fannie mae homepath property for a flip. It has good numbers (215K purchase + 130K rehab with 475K ARV). The bid just go accepted, however the HELOC that i was going to use to fund it fell through at the last minute (last minute credit pull showed a new account that wasn't there before and messed with DTI).

I can probably fund the deal using credit cards and mess with my credit score (i have pretty high credit limits) but I am thinking that this might be a sign that i should slow it down and stabilize everything before the next deal. I keep going back and forth between pulling out of the deal and waiting till next year or pulling out cash from CC's and trying to get creative.

I just wanted to get peoples take on this. I know some of it has to do with personality and risk tolerance too.

Congrats. Glad to see people getting a good use out of BP.

It would depend on your end goal. If its a property that you intend to hold for less than a year i would go the credit card route. I know i can easily get 20k interest free for 12-18 months due to my credit score. Only charge would be the 3% transfer fee. 

Also you could look for a private or HML that makes loans that low. Lowest i have seen in my area is 75K but that is the higher cost area of Chicago.

Now if this is a long term buy and hold then it might be trickier since you dont want to pay hard money rates long term. Im not sure how to go about that.

Welcome Todd. Always good to see a new face join the fray. As for me i lived and breathed the podcasts until i listened to every single one. I was actually very sad to be at the end and have to wait a week for the next release that i went back and re-listened to some of them. lol.

Check them out if you haven't yet.

Are you saying the most current appraisal was from before the previous owner upgraded the house? That is the only thing that makes sense. Then the upgrades are worth the 700K extra.

If the most current appraisal was done recently and you are paying 700k over that, what is the reason?

Haha. Unfortunately i have a Condo that i am selling at the moment. I guess i picked the worst month. Dang buyer financing falling through. Well we will see what happens.

This all depends on your risk level. What are the interest rates on the credit cards and what is your current job situation?

In my opinion i would use the money for a down-payment on an investment property. One strategy that i am a fan off is to have others pay down your debts. I.E. i have student loans that i could have paid off but it would have taken all my cash. I used the cash to buy a multi-unit and the rents from that are paying off my student loans (and also covers the property payments including maintenance and cap ex). Long term i believe that i would come out ahead with this route. However my student loans are also lower interest so factor that in.