All Forum Posts by: Chris Licavoli

Yes we are holding rental property. In the right neighborhoods 1% rent to value is the norm.  The keys are to avoid double property taxation via county AND city tax and to avoid HOAs if possible which only adds to your expense line. 

They are missing the boat if that's the case. I would be interested in converting my IRA into a 401k

Yes CCB actually creates for you an LLC in who's name, the credit is established. You can probably use your own entity if you have one already, but they said that credit card companies are more likely to lend to certain types of businesses over others. CCB recommended using a "consulting" type of business as most likely to be funded to the max.

Hello BP

Here are some facts and figures of our latest SFR Flip. This was a little 1965 all brick 1350 sq ft starter home at 617 Valleybrook Drive, Savannah GA. Its location advantage was that it was within walking distance to local university.

Purchased from wholesaler for $73,734 on 12/31/2014

Repairs  $27,668 that's $20.49 psf which included new carpet and tile, paint, molding, bathroom cabinets, resurfacing tubs, new ceiling fans, lighting, doors, faucets, handles, granite counters, backsplash, appliances.   What was good already on the house was the AC, roof, windows which are normally big ticket items we did not have to spend money on.  The 2 best improvements we made were flipping a coat closet originally facing the living room 180 degrees to face the kitchen to be used as a pantry, and the installation of a center island and range which allowed us to add a dish washer that previously did not exist in the kitchen.

The property was originally marketed as FSBO and we got it under contract with 2 buyers, both of which fell through because they could not qualify. We finally listed it with a real estate agent who did bring a qualified buyer and got it sold. Selling price was $145,900 ($108 psf). Cost of sale was $11,754 including commission, buyer concessions and private money interest costs leaving a total profit of $32,744 which was over 30% total return in 150 days in to out. This flip took longer that expected because of the false starts with the FSBO unqualified buyers and delays in developing a new low cost granite solution. We ultimately purchased 3 standard precut slabs from Floor and Décor for $480 and had a local fabricator cut and install them with an under mount sink for another $975 in mostly labor costs and it turned out great.

This was a prototypical flip for us. The nice thing about it was that we used some private money and paid 10% simple interest and also used personal self directed Roth IRA funds which meant that the gain is mostly tax free. I hope this inspires someone to go out and pull the trigger on their first flip. The keys to success: don't over pay, don't over renovate, and price it at or below the market value for the area so it will sell fast!

Best Regards

Chris

Oglethorpe Properties Savannah GA

I am not familiar with the 3rd party institution they talk about the the tricks they suggest in their package are as follows:

1. Open CitiSavings Accounts - $5000 at a time, open, fund, transfer, close, open again etc

2. Use cards for purchase materials at zero interest

3. Use the cards to balance transfer to pay off other higher interest credit cards

4. Request "Balance Transfer Checks" and write yourself a check for the funds to put in your bank acount

5. Balance transfer to a line of credit or Heloc (this is what I did successfully)

6. Overpay on another credit card, the request a refund

7. Use existing merchant account strategy (I did not understand this one)

Hope that helps.  

It's not their fee. Each individual credit card has a crazy high fee that must be avoided. Credit Card Builders gives you like 6 tricks to bypass the fee. None of the tricks are simple or easy except for the balance transfer trick to pay off a HELOC.

Well I just wanted to let everyone know that I pulled the trigger with Credit Card Builders. For $3000 I got 1 year of service for both me and my partner. I have to say, they did exactly what they said they would do. I received a seasoned business entity and $75K in first round credit, and my partner also got an entity established with $120,000 in credit in the form of 3 or four credit cards each. The next step is for us to "eliminate inquiries" and then they will apply for more credit. The credit is zero % interest for a year. I immediately paid off a higher interest rate HELOC and zeroed out the balance so that it was available for large purchase like a property again. If you don't have that situation, getting the cards liquidated into a cash account is actually not as easy as they lead you to believe. But still, I have $75K in credit that is not in my name, that I did not have before and the cards can always be used for paying for things like renovation materials and making minimum zero % payments until the property sells. Can you do this yourself? Of course you can. But the question is will you? I am working multiple jobs and only have so much time in the day. So its really a convenience service. I figured we will have made back the cost of the service with the very first property deal we do with the funds. Compare this to 12-14% interest HM loans and its really not a bad deal .

Thanks for all the great advice and insight.  Clearly taking one of these types of deals down is not a simple undertaking and I can see how difficult it would be for a seller of a portfolio of SFRs to sell it kit and caboodle to another investor.

No advice so far?  Really? there must be someone out there in BP land that knows how to analyze and offer on a portfolio of single family homes! 

Hello BPers!

I have had in the past and anticipate in the future being offered a portfolio of rental properties from a retiring investor. Back then it was like...deer in headlights response. I would love to get some advice on how to analyze and take down such a deal. Would one have to analyze p&l of each property and try to cherry pick or prepare some sort of business proposal for a bank commercial loan. Should it be analyzed like a multifamily on NOI or computed based upon comps for each individual property? One thought I had was compute the owners net monthly CF, purchase for him an annuity that gives him equivalent CF and take over all properties subject to existing loans.

Any advice would be appreciated