All Forum Posts by: Jeff Filali

Have you really not found any deals, or not found any deals that you felt engaged to pull the trigger?  Maybe you need to broaden your criteria.  I cannot imagine not finding a single deal in two years, especially with being a licensed realtor.  Activity creates activity!! The more you grow your network, the more deals you'll find.  But at some point you'll have to stop having "analysis paralysis" and jump in with the sharks.

Thanks @John Leavelle 

I currently own all my investment properties free & clear with around $600K in total value/equity. (Which is a lot in the Midwest/blue collar areas where median home prices are below $100K).  I'm ready to start leveraging to scale and was considering financing all or several of them, but have started looking into just doing a business line of credit using all my curent properties as collateral.  

That would give me a large amount to use to acquire new properties and BRRRR. The LOC would basically become my own private lender for myself at very low rates. Use the LOC to purchase and close fast on deals, rehab them, get them occupied, & refinance to pay down the LOC. Then repeat.

Has anyone else had experience doing this LOC method instead of actually financing their existing properties?

@Caleb Webster mainly within my state, but have also had a few out-of-state deals. When I first started, I was targeting a five state region around me, anywhere I could find a good deal in the region. Now that I've built my name and reputation, I've targeted more within my state, and mainly about a quarter of the state. Moving forward though, as I transition into more multis, I'll consider JV deals anywhere the numbers are right.

I own properties all throughout Oklahoma and was paying very high rates, but switched all of them to REIGuard out of Kansas City over a year ago.  Saved a lot of money, they are very investor friendly, all properties on one invoice (even if held in multiple LLCs), monthly reminder to make any changes, only pay for what you use (daily billing), offers coverage for vacant properties, offers replacement or cash value coverage, and a lot more.

There's probably some local private lenders in his market that would do it, but they would probably want to mark the house up some closer to value, and want a decent down payment.  There's risk and cost involved if they have to foreclose.  Their question would be why is the landlord selling, and why don't you buy it and sell it to him?

Welcome to BP @Nolan D Frese and congrats on your athletic success.  NW Arkansas is a very hot area and there are many great people there who will be more then willing to help you.  Good luck!!

@Thomas S. even in lower income housing, you should still take care of major repair needs.  It's still your asset setting there. I look at it this way, if I had a hundred dollar bill that got ripped into two pieces, I would tape it together and fix it, maintaining the value of my asset.  I wouldn't just say oh well, it's just going to tear again and let half disappear making it worthless. 

@Account Closed check REIGuard out of Kansas City.  I use them on my entire portfolio.  They are great for investors.

NREIG - Insurance for Real Estate Investors:
• Coverage available in all 50 states
• Cash Value or Replacement Value policies
• Monthly Invoicing (All Properties on one invoice)
• Only pay for the time you need coverage
• Coverage for Vacant or Occupied Properties,
and many other benefits. 

I do use an Inspection Clause but that's because I contract to buy many properties site unseen, based on the owners word and photos, and after contracting we set up a time for my GC to fully inspect the property and bid it to make sure there's nothing major the homeowner didn't disclose.  But I let them know up front, that the contracted offer is pending no other major repair that wasn't disclosed. 

I also use this in all my purchase agreements now:

"Buyer reserves the right to do a final "walk through" the day of closing. Property is to be vacated by all occupants not on a current lease. Seller agrees to pay any legal fees and expenses required to remove occupants if property is not vacated on day of closing." 

I added that after having an issue getting a family member of a previous owner to move out after closing on a property.