All Forum Posts by: Percy N.

Depends where it is. Philly and even suburbs vary greatly. PM me the address and I can share some thoughts. Who is going to manage the unit? Does your expense include PM and debt service?

Did you get a T12 from them? That should have the expenses and you can even confirm that via bank statements. Not that unusual for new or just renovated properties but you can underwrite it at 40-45% if that makes you more comfortable. What is your strategy here (buy and hold, value add, etc)?

Originally posted by @Chakits Krulsawat:

How are investors syndicating deals without the lender requesting everybody's credit history?

 I think most lenders will require anyone owning more than 20% of "the syndicate" to be on the loan.

Have you asked what if the loan is for a LLC for which you are the manager? Your LLC might have part of the 35% as debt from others.

Agree with the reviews of Michael Blank's tool. 

It is apples and oranges with the deal analyzer on BP.

BP's tool is great for a property - SFR or multi-family under $1MM.

Michael's tool is great for large projects ($5MM - $10MM+) where you can plug in different scenarios and compare them to the OM or T12. It also calculates IRR with a preferred return for LP investors as well as the GPs.

Another option is to partner with someone via a Joint Venture and split the risk and profit.

OR

If you are looking at a more passive investment, go to one of the crowdfunding websites which let you invest as little as $5k-$10k

Alex Ray with $20k, you should be able to leverage it for a loan of 70-90k Or you can look at Hardmoney and use your funds for the rehab.

No harm in letting them know you are the designated "property manager".

As the name suggests, these are liens placed by the Home Owners Association on the property for past dues and fees/fines. Be aware that buying an HOA lien is still subject to the mortgage and other liens of they exist. Liens and fees can add up. In one case a REO I purchased had $14.5k in HOA dues.

@Khoa Hajust make sure you do a proper title search on the property and know what liens might exist.

In one instance, I actually won the auction (had done a preliminary title search) only to find out that the title was clouded by the previous owner and the current owner had liens from the IRS and was a little crazy and had tried to set fire to the property. Decided to pass on it and let the $12k deposit go.

Auctions are not for the faint hearted (not saying that you are), so go in eyes wide open.

Jordon McMullin there is about 3 days worth of non stop reading about this topic on BP alone. Also do a search on YouTube to see how people rehab. The key is going to be remembering that you make your money when you buy. Don't fall for overpaying for a property which my need more work than you initially anticipated.