All Forum Posts by: Ray Hage

I know it is crazy to think but is there private lenders to talk to that will work with you on rates, terms...etc? I have a 6 unit all 1 bedroom 1 bath units. they are asking $625K. If I did $2500/mo for 25 years they make $125K. Would anyone work with that? Tried hand at seller financing but they just want to sell and retire.

I am a private lender. Let me tell you, private lenders' rates are higher than the banks and they generally don't over 1-2 years. You'll need to get a loan through the bank and even then, you'll have a higher cost than 2500/mo

0 Votes

Milwaukee, Wisconsin

Quote from @Bruce Lynn:

So the project is 100% bust. Sponsor is offering 2 options. One is to get a K1 for the full amount of the investment loss. Option 2 is to get a promissory note for the full investment amount, payable over five years, if they have profits from other projects. They're making it sound like if you take the payout, you will not be able to take future losses, even if they don't pay out the full amount. Does that sound right?

Sorry to hear this. Syndications are so risky. I looked at a few but I couldn't justify the risk vs reward. I would only trust a CPA's answer on what the right move is in your specific case.

2 Votes

Miami, Florida

Quote from @Nicholas Bacon:

Thanks Ray, my first deal was actually in the Buffalo, NY metro area. So not quite the same as South Florida, but I do have aspirations to move my investments south, where the commute is a little less!

Still great. I am not familiar with that market but if as long as the numbers, property and tenants make sense, you'll be doing well. I assume it's far cheaper than here haha

0 Votes

Miami, Florida

Quote from @Wayne Poisson:

Hey all, I’m looking to purchase a rental property in Cleveland, but I’m getting mixed messages about whether or not I would qualify for a mortgage because I’m Canadian. One broker told me I need a residency visa (but couldn’t actually tell me which visa to get), another said I couldn’t get a mortgage at all (since I don’t live in the U.S.). It would be great if someone could provide some clarification on the matter. Thanks in advance!

You have plenty of options to get a mortgage. You just need to find the right broker. I live in Florida and Canadians are the biggest group of foreign buyers here.

1 Vote

Without knowing all the info, I would lean towards holding it and taking a loan against it to use for other investments. I know rates are high at the moment but there is still money to be made out there. I agree the ROI is a bit low. If you sell, are you planning to invest into another property with much higher returns?

1 Vote

Austin, Texas

Quote from @Justin Whitfield:

Hello everyone,

I'm relatively new to real estate investing and I'm looking for some advice from you experienced investors please. My personal goal is to generate as much cash flow as possible so I can reach FIRE status as soon as possible and then just invest in RE full time. I have $500k in cash to invest as well as a credit score between 750-800. I also currently have 2 rental properties (1/2 of a duplex and 1 SFH) I currently have about $400k in equity in the 2 properties and they generate $2k/mo net income (before repairs)

How would you invest this $500k if you had a similar goal as me to reach FIRE status asap? Would you buy many SFH's or would you by a few 2-4 unit MFH's or would you go for the big one and use all $500k as a down payment towards the biggest MFH you could find that you qualified for? Also, how would you use the $400k in equity that I already have in my other 2 rental properties? Any help is greatly appreciated and thanks in advance!

Justin

With 500K cash, I would use most of it for one building if you can find a good cash-flowing one and the rest can be kept as reserves and/or private money lending. There is risk in everything so always keep some reserves. Regarding the 400K in equity, you could also pile that into a building if the returns are high enough. As of late, I have been using my extra cash for PML and but I am also going to look at the mid-west market smaller MFs.

0 Votes

Hi. I don't own any condos but if I did, I would aim to sell ASAP. Prices are going down and insurance/assessments are going up. I am also RE agent and have already advised my clients not to buy any condos unless they are really financially and emotionally ready for the risks involved.

I agree that FL is a still a hotbed for investment but I am not sure condos specifically are worth the risk. I would advise to aim for SFH and smaller buildings at the time.

1 Vote

Miami, Florida

Quote from @Victor Arocho:

Is there a good book or post/podcast to help me figure out the best strategy for my goals? I am having some trouble deciding which strategy to pursue (Fix and Flip, BRRRR, etc.)

Hi Victor, what is your primary goal? And what is your current situation? This would determine which may be the best strategy to pursue. I am generally biased towards house-hacking if possible and also BRRRR. Flips can be good money as well but I would avoid unless you have a very experienced partner in it.

0 Votes

Fort Lauderdale, Florida

Quote from @John Kilhafner:

So this is my first application that has had a eviction on their record, its a couple that are applying together for a house. One had an eviction on their record 5 years ago and the other has nothing bad on their report. Trying to get some opinions on what to do in this situation, the applicant that has nothing on their record is the primary earner in the relationship. Already reached out to their previous landlord and waiting to hear back about their payment history.

I'd generally agree with @Dennis McNeely's answer on this. I'd also add, you need to be sure they can pay and have some savings put away. For example. is the primary earner's income enough to pay rent and other monthly bills? If they got a nice cushion of savings say like 10-20k, I would probably accept them as tenants assuming all the other ducks are in a row and if they are willing to put first, last and security down (if legal in your county/state).

1 Vote

Quote from @Michael Weleski:

I am a 20 year old college student looking for advice on what to do in my current situation. I work 2 (soon to be 3 jobs), live at home, attend college, have 20 grand saved up on top of stocks and an IRA. Should I pull the trigger on a investment property now or should I wait until I graduate college to purchase something?

What's your major and what is your plan for your college degree (for example, are you a finance major and planning to work for a large investment firm)? Without more info, I would probably tell you to wait till after college to get an investment property. I would imagine 3 jobs and college is enough on your plate! You got plenty of time to get started.

0 Votes

Pittsburgh, Pennsylvania

All Forum Posts by: Ray Hage

Ray Hage has started 1 posts and replied 1069 times.

Post: How to find private lender for terms you know work??????

Post: LP syndication investment 100% bust.

Post: Introduction - Newbie Investor

Post: Obtaining a U.S. mortgage as a Canadian

Post: Should I keep paid off house?

Post: How would you invest $500k solely for the purpose of cash flow and FIRE

Post: South Florida Condos - Buying, Holding or Selling?

Post: Real Estate Investing Strategy

Post: Two applicants one has a eviction

Post: My Situation (First Post)