All Forum Posts by: Patrick Menefee

Hey BP fam,

I’m in the renovation process for an 8-unit apartment in a so-so area of town, and unfortunately during some down time on the project we had some copper stolen. It made me start thinking about an outdoor security system for the future once everything is up and running.

Do you have any recommendations? These are all units with exterior doors so there’s so shared hallway or anything like that, just a shared laundry room accessible from the exterior. Any equipment I can keep locked up in the laundry room with power and internet access.

I’m considering throwing up cameras all around the outside of the building, but trying to figure out the best bet for monitoring. I live in a different city so I’d like something with remote capabilities, ideally with storage on the cloud so I don’t have to worry about a hard drive filling up.

What have you used? What else should I consider? TIA!

The Angry Ale's meetup is back! This event is scheduled almost exactly 2 years after the first one was hosted. Unfortunately we took a long break due to Covid, but we're starting back up!

If you've never attended, we keep a rather informal atmosphere for everyone whether you have a lot of experience or are just on your first deal. We don't do formal presentations or speakers, but rather present an opportunity to share lessons, ask questions, and truly help each other progress in our respective businesses. 

Ultimately, the goal is for this meetup to be a monthly check-in of sorts for your business:

1. Come prepared with something you're looking to get out of the meeting and give to other investors
   
2. Leave energized with a more clear picture of where you are going
3. Grind it out over the next month so you have an update to share with the group in the next meeting

Please comment or reach out with any questions, RSVP so we get a feel for how many to expect, and tell your friends!

What: talk real estate and business over a few drinks

Where: Angry Ale's bar in Montford (near the Park Road Shopping Center), Monday July 26 @ 6:00pm

When: the fourth Monday of every month

Who: anyone interested in expanding their real estate network in Charlotte and moving their business forward

Please pass the word to any friends or family who may be interested, and I look forward to seeing you there!!

@Samuel Liapis i would strongly encourage you to step beyond the books. They’re an incredible guide and starting point, but a single book can never and will never include every aspect of real estate investing. Additionally, you learn far more by taking what you read as a starting point and learning the rest on your own

The bottom line is yes, you absolutely can get a property 100% financed. It may not all be from the same lender or same person though, which is where the difficulty comes in. The reason real estate investing is valuable is because it isn’t easy, it takes some work to figure out

You ultimately have a few main options, although the combinations are endless:

1. Get a good enough deal that a hard money lender will cover 100% of the purchase price. This is hard to find, but there are some lenders who will do 100% of the purchase price as long as it's no more than 65-70% of the ARV. You still will need to find a way to pay for the points and closing costs

2. Get a private lender who will loan on 100% of the price. However, unless you know someone who trusts you beyond a shadow of a doubt this may not be likely until you have some experience

3. Get some combination of private or hard money + a personal loan, line of credit, etc. This is the most likely up front

The bottom line is you need to do your research and talk to lenders in your area to give it a shot, but don’t count on one or two people or a book to play Siri and give you the exact step by step directions. There are options! You just need to get creative and pull them together

@Rax Gupta everything @Joseph Cacciapaglia said is spot on. Nobody can answer that for you, but we can ask some questions to help you answer the question for yourself

What’s your long term goal?

Are you looking to receive monthly checks, or just allow your equity to grow without seeing immediate return?

What is your risk tolerance level?

How active do you plan to be?

Are you investing money you can stand to lose, or are you investing your last dollar?

What are your other areas of expertise?

All of these will help point you in the right direction, but the most important thing I’d leave you with is this...

There is only one person in the world who has that answer, and it’s you. If people answer you with a number, take it with a grain of salt and evaluate for yourself. Don’t ever take someone else’s opinion or number as fact, as right, or as gospel

@Alexis Jaramillo look at the overall ROI and ROE. What can you do with that capital? You're paying 4.5% to use that money...can you get a return better than 4.5%? If so, yes absolutely. If not, well...

@Sergey Pshenichkin I’m not a lender so this is just from my experience, but you’re likely going to have a difficult time qualifying with a conventional mortgage. They want to see W2 income, or 2 years of self employed income on tax returns. Underwriters will likely have an issue with how your income is pieced together

I’d recommend trying to find a co-signer to go along with you on the loan, or look at commercial/non-conventional lenders who will qualify the unconventional income you do have

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $153,000
Cash invested: $47,000

Each unit of this quad contains 2 bedrooms, 1.5 bathrooms, approximately 900sqft, and is currently occupied! It’s on septic, but tenants pay the remainder of the utilities

What made you interested in investing in this type of deal?

My entire portfolio is built on multi family properties. When I was presented with this opportunity it was a no-brained to add to the portfolio

How did you find this deal and how did you negotiate it?

A friend/agent in Fayetteville, NC sent me a message notifying me that this property was about to hit the market. After getting a little information we found that it was going to be listed for $159,000, and got a verbal agreement from the seller for $150,000. We added $3,000 to the purchase price to get some of the closing costs financed and the seller agreed!

How did you finance this deal?

I partnered with a couple who are out of state investors, and we used conventional financing to purchase the property

How did you add value to the deal?

The value add will be a work in progress. The neighborhood is rough right now due to some vacancies, a couple of condemned buildings, and a private road “maintained” by the owners of the neighborhood

Adding value to this deal won’t come from improving the property, but from working with property owners in the development to either fix up the houses and the roads or buy the rundown houses

What was the outcome?

The greater outcome will come in the future as other properties are acquired in the neighborhood, but in the meantime we’re going to capture a combined $500 of cash flow every month

Lessons learned? Challenges?

It’s always important to think outside the box, but maybe sometimes you need to go a step further and step outside the property altogether. In this case, working with other owners to change the neighborhood will be difficult and incredibly challenging but will ultimately provide a fantastic opportunity

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Thanks to Mike Glaspie and the team at Five Pillars in Fayetteville!

It's off of a small road called Hunt Street, right off of Old Salisbury Road. Do you know it?

@Ben Clark you won’t be able to do it through a conventional loan unless they send you the money 2 months before you initiate funding for a property

Check out commercial lenders and setup an LLC. I did the exact same thing on my first property and it worked out great, you just have to set things up properly and talk to the bank to see what their criteria is. Your best bet is using some type of local or regional lender and using a commercial loan where they underwrite your and don't source the funds

Reach out if you want to talk more about it...i spent a lot of time looking into how to make it work for my partner who was in the same boat!

@Timias Woods this was my first deal with him, although i knew him previously. But i do, i have one deal that’s 100% on my own (my first one) and the rest are with partners