All Forum Posts by: Ricardo S.

@Adam Johnson

I almost lost out on a property doing this exact same thing as you did with an escalation clause.

Next time offer your highest bid and call it a day if you really want that property.

@Samuel W.

The new (to me Atleast) loan product on the block is

40 year fixed loans , first 10 years are interest only payments. Cash out refi at 80 LTV as long as your DSCR works. They require a 6 month seasoning.

Based on how the market is going I would Personally pay the point and refi to get as much capital back as you can. That point will be a tax deductible expense anyway.

Good luck

The reason those contractors want so much money upfront is because they know you are inexperienced and you want them to pay for materials upfront.

If you allow a contractor to pick materials they will buy the bare bones cheap stuff most of the time.

What you need to do is ask for a material list from your contractor if you don’t know what to buy and purchase it yourself and pay for LABOR ONLY.

Good luck.

In Atlanta, my current market;

The profit margin I shoot for is 15% of the ARV as a general rule for my flips.

Hope that helps

For full Guts I’m around $60 a square foot. Right now though good deals are hard to find. Most investors are pivoting towards 2nd floor additions to get a decent profit or new construction, but those are about $150-$250 a square foot due to all the work involved and your level of finishes.

Your best bet is to try areas outside of the 285 perimeter or go direct to seller.

@Alexandra Preziosi

I was looking to purchase in Jersey a few years ago because I was priced out of NYC. I ended up buying in Philadelphia because the numbers made sense aka the 1% rule.

As far as your example. If the cash flow amount works for them then let them be. But generally speaking in New Jersey the 1% rule can be reached for 3 and 4 units not so much duplexes.

I generally look for a 15% return yearly at the very minimum on my money.

And this is after PITI, Vacancy, Capex, Management, etc.

@Martin Neal

How long did the rehab take? From closing to being “rent ready”?

Congrats btw

My units all meet the 1% rule or better. I price my units at the top end of the market and do not raise rents unless my expenses increase significantly enough where I fall below the 1% rule. In my opinion its not worth increasing rents every year just to keep up with the market. Unless you did a major improvement to justify it. If you have a good tenant let them stay. They will be there for a long time and overtime will realize they have a good deal but in reality you had the better deal because 1 tenant could potentially pay off your property. Now if they move out then the next tenant will pay market until they move out and so on.

@Nicole (Dunlap) Pendergrass

Congrats!

@Andrew Syrios

Hmm, Sounds like a good title for a future real estate book lol. I haven’t tried raising money yet but it’s in my future plans