All Forum Posts by: Reece Iovine

Do a walkthrough with a contractor or pay for an inspector to walk the property with you during a walk through and point out anything major then when you make an offer waive inspection as you already have done the inspection. Have to get creative.

Switch lenders...did you pull comps for the appraiser what was their justification for the value they arose at.

If the tenants communicate with me and have a plan to pay rent or be able to pay soon I will absolutely work with them...I have one tenant that is doing rehab work for me in order to pay his rent.

However if a tenant is not putting forth effort to find a new job, find money, or somehow compensate me, I am not going to let them live in my property for 8 months rent free...

While I have reserves, by letting a tenant stay who is not actively trying to improve their financial situation and pay me, I am losing money that I could use to help someone who is actively trying to pay rent like my tenant working for me.

Set up weekly touch bases. We need to be actively engaged at this time to find solutions.

Just do traditional financing...hard money or private money needs to be paid back quickly. IF you cant fully execute the business plan quickly due to needing to wait on tenants to move out how will you add enough value to refinance and pay off the hard/private money?

What are your partners responsibilities, 90% cash sure, but what else? Does he manage the rehab process start to finish, does he sign the loans or do you guys go all cash? 

What is the reason behind the 90/10 cash split. If the goal is to use the companies money in the future then why not just buy into the company 50/50 cash and then assign equity based on on going roles? 

I'm a fan of 50/50 partnerships with well defined responsibilities. I would think if you guys go 50/50 cash, you handle acquisitions and management and he handles rehabs, then 50/50 would be a decent split however I recommend partner on projects not a company. 

IMO it doesn't make sense to go 90/10 on cash unless you don't have the money right now in which case just partner on individual projects have a OA for each deal you do defining ownership and that way ownership can change per project. 

What if you guys want to buy a turn key deal that you find well under market value...well their is no rehab would it be fair for your partner to get 50% when you found the deal and have to manage it but there is no rehab...

you can find someone that will do 6 month seasoning...might be loan programs available with no seasoning but probably worse interest rate...id just wait 6 months 

As long as you have 3-6 months reserves for PITI on each loan and each loan/property is cashflow positive and global debt ratio is good then they don't care.

However once you get to 10 loans you will need to go commercial on properties

I would and do continue to invest in B-C assets that have strong cashflow. Something that I can add value too. I want to be able to increase value 25+% and have at least 250 per unit in stabilized cashflow. Highly unlikely even in an economic melt down I would have to drop 900 dollar rent more than 250 dollars in my market to get them leased up to people with good jobs.

I dont believe you should ever stop investing based on the market. I believe that your criteria should change...For example im much more strict now for safety but also because I think good deals are coming soon and so I won't stretch to invest in an OK deal now.

If the credit card interest is higher than your cash out refi (which im sure it is) then yes it makes sense.

The way you initially purchase a property has no effect on the BRRR method (Buy renovate rent refinance) Buy the deal how ever you can as long as its a good deal. Make sure there is no prepayment penalty in the seller financing note so you can refinance in 6 months to a year after the property has seasoned for a traditional lender.