All Forum Posts by: Orkeem Davis

I have 2 investment properties - Duplex (112k HELOC) and Condo (138k HELOC). I'm looking to possibly sell the condo to payoff the HELOC and use those funds to payoff the Duplex HELOC. It will appraise for approx. 200k. Once the HELOC is paid off, I will get a new HELOC for 160k. This downpayment should allow me to purchase a 4Plex. Any suggestions?

Great!  I will be waiting in the Borgata Casino food court at 2pm on this Saturday.  I look forward to meeting you this Saturday.

Hi All,

I will be in Atlantic City the next few weekends.  Saturdays are a good day for me to meet, greet, and discuss real estate.  Borgata Casino's downstairs food court seems like a welcoming place to grab a good meal and talk.  Anyone open to meet this Saturday around 2pm or so.   Open topic discussion, networking, and discussing South Jersey real estate opportunities. 

Hi Latasha,

I like your motivation! Like other investors, I am voting for you!  I think you should gain as much information as you can via meet ups, workshops, BiggerPockets.com, other investors, etc.  Do not pay hundreds or thousands of dollars for your Real Estate Education.  If you do, you may end up with 3 loans instead of 2.  Contact me or other investors if you need assistance.

Best Success!

Orkeem

Start out with the approved unsecured line of credit of 15k and make payments on time. You can probably get an increase to 20k or 30k in 24 months with a good repayment history.  Real estate financing starts with a ripple effect for many unless you have a massive saving amount or family and/or friends backing you financially.  It could me some time to build up my unsecured lines of credit to over 40k.  Of course, it must be noted that a steady, good income reflected on W2 helps and most times required.

You definitely want to earn your IT degree -- Real Estate Investing is not going anywhere.  I have 2 masters degrees - I have a MBA w/emphasis on IT.  I also have a MA in counseling.  I am also a part-time real estate investor.  Needless to say, my monthly income and source of funds are diversified.  Right now, you are in a great position to also have cash coming from a few different directions.  Stay focused and finish your 3 semesters -- it will payoff long-term.  All of those people giving short-term advice, are not being strategic thinkers --- I am self-employed 90% of my time and I am working towards 100% self-employment and full financial freedom.  One final point, it is always easier to apply for a credit line, unsecured loan, or mortgage, when you can show part-time or full-time salary.  IT degree will assist you in that way.  Best success!!      

Update - The COs are scheduled and hopefully everything is approved and we close in the near future. Worst case, the COs need a great amount of work done prior to receiving approval and the present owner wants us to chip in on the cost of repairs. We will sprint away as fast as we can --- no go. I appreciate the honest feedback from all. I never said this was a Great Deal or even a Good Deal, but it works for us. It's an off-the- market-deal where there are obvious pros and cons. Even if I explained all of the present facets of the Deal - point for point - operating income, NOI, exit strategy, etc., there would always be naysayers. I get that. At the same time, we are all real estate investors with different levels of expertise and I am comfortable with my standing and return on investments.

Great story and very motivational ---- thanks for sharing.   I like how you just got a  8 flex under contract, then plan to visit property, and then inspection.  Extremely proactive and I agree with this approach.  

@Pat Gage I have a few commercial banks with direct contact persons in my area interested in providing financing for this mixed use property when I have sufficient equity. The taxes are low in this town, and the taxes for this property is around $3900.  If the taxes increase, a higher appraised value is not too far behind.  I am not too concerned about that.   Since this mixed-use property will be paid off in full in 8 years, possibly sooner, we will analyze what is going on in the RE market and make our next financial decision with regards to using the equity to purchase additional properties.  I already have a few unsecured cash lines.   Hopefully, this property or another one of my properties will put me in a position to have a 100k - 150k cash line available at my disposal at all times.  As you know, every time you purchase an investment property, you are required to put 20% - 25% down.  This requirement will become easier for me and I will be able to transfer larger amounts from this line of credit -- access 24/7 -- to reach more RE goals.  Banks and other financial companies move faster when you can show you have the down payment in hand.    Thanks again!

@Jim Walker Thanks for the feedback.  Yes, I am a professional along with my wife - we both have steady employment in addition to being RE business partners.  Our personal finances are in good shape, but can always improve.  This mixed-use property will be my second Closed Deal this year and I have another 3rd Deal (multi-family apartment building) in underwriting as we speak.   We own additional properties from prior years, and 2017 has been a very busy year for us.  Bottom line, we are diligently investing and plan to reach projected gross yearly rental income of around 150k in the immediate future.      I hope your RE portfolio is also working in your favor as well.

@Pat Gage - thanks for the feedback. I would be more concerned too if this was my 1st real estate deal. I have a few RE Deals under my belt and my portfolio is fine. Actually, my attorney is starting to step up to the plate -- he is requiring the seller to produce CO (Certificates of Occupancy) for the mixed use property prior to Closing. All rent rolls for Oct 2017 and security deposits will be used to offset by required down payment. This the 2nd deal I worked on with this attorney. The 1st deal closed and I have a positive cash flow of $900 after PITI. I'm no invoice, but each deal is an adventure and sometimes bumpy roads will occur. I must admit this is a sticky deal, but no risk no reward. Thanks again.