All Forum Posts by: Ray Hage

Quote from @Jason Bu:

I’m Jason Bu and I live in Miami, Florida. Been looking into buying either an apartment down here or a house or multi-family in a city like Titusville or Fort Myers. 

Hey Jason, I am an investor and realtor here in south Florida. What's your plan for the property? For example, are you for a turnkey or fixer upper, STR or LTR? etc

Quote from @Rhianna Cultrona:

Looking for recommendations

 Hi. I am also a PML and have a great lawyer in Orlando Florida for this. Are you planning on lending for properties in Florida or Ohio or where? I would strongly suggest you get a lawyer for whichever state/s the property/ies will be located in.  

Quote from @Robert Ellis:

Quote from @Ray Hage:

Quote from @Haley Cisar:

Hi everyone! We are hoping to start the process of becoming a private lender to investors. 

I would imagine our first step in this process is speaking to a lawyer to make sure we have the needed documents and protection. We are looking for recs on lawyers you have worked with around Tampa Bay. Also any advice you have to two young people just getting started would be appreciated! 

 Hi there! I am also a private money lender here in Florida, but down in Fort Lauderdale. I would be happy to talk you through it. I also help raise private money for flips mostly in the Orlando area. 

You probably won't need a lawyer to come up with your own documents if you'll be dealing with an experienced flipper. However, you will want your lawyer to review those documents to make sure you are as best protected as possible. If it is a new flipper you'll be working with, then you would probably have to draft documents from scratch. I work with an attorney in Orlando that can probably help you in that. I'll send you a dm.

 what do you do in south florida? 

 Primarily, I am an investor and realtor in Fort Lauderdale. I also loan money and raise money for flips. 

I would strongly advise against it unless they are a true handyman, carpenter, plumber, electrician, etc. If the work gets done incorrectly, you'll have to fix it again later.

Quote from @Keegan Darby:

Quote from @Kyle Spearin:

@Keegan Darby when you sell, what's your goal with the proceeds? I ask that because that would help inform the strategy.

 I would lend it out via hard money, which I'm currently doing, at 10%. 

 I think right now that's the best use of the money. I also loan out as private money lender mainly in the Orlando Florida area. Returns can be much bigger than 10% (at least here), especially if willing to take 2nd position.

Quote from @Kyle Z.:

Thank you all - I will not be able to deduct passive losses against earned income, so I won't have that benefit. Timeline for IRRs I sensitized around 5,10,15, and 20 years (and at 2% appreciation). I am already maxing out retirement contributions. 

Let me ask in this case; in what scenario would you want to pay down your principal with a high interest rate??

I suppose if you don't really have another reason to use the money (no plans to buy RE in the future, no interest in stocks/PML/other investments). Another reason could be to lower insurance costs as you will be covering less. I'd only be paying off very high interest debt like credit cards or another type of high interest loan you might already have (I don't consider 7% that high). 

It looks like it is a gas water heater but if you're still not sure, you can always check the model number in a google search. That will tell you 100%. It doesn't look too old. You can check the age via the serial number as well

You can definitely make a lot more than 7% in other ways through the stock market, buying another rental or private money lending. I'd tell you to not put it into your current mortgage and look for a better way. Personally, I put my money into stocks and also I lend money for flips mainly in the central Florida area. Also, considering getting into my own flips when I have more time to manage them. I think those are far better options to consider.

It's a bit of a tough position especially if they have been living there for a long time with the previous owner without having a security deposit. I suppose it depends. If your goal is to keep all the current tenants, it might be wise to avoid it. If the $45 rent increase + security is tough for the them, maybe you can go a little higher with the rent increase and not ask for the security. Either way, it is tough. 

I'd probably lean towards just increasing the rent a bit more than you originally planned and only for new tenants, require a deposit. That way you don't have to immediately worry about a big loss in cash flow starting in Aug.

Quote from @Haley Cisar:

We plan on using our own money. We have roughly 70k sitting in a high yield savings and also our heloc on our current home.(paid off) Estimated 350k. Pros/cons for using either one?

I'd lean towards mainly using your 70K as borrowing via HELOC is more expensive as rates are 8-11% right now. I would imagine you HYSA is closer to 4-6% so I would start there and with a smaller loan.