All Forum Posts by: Sam Domach

Hey @Scott Wolf!

Thanks for the reply.

This would be a second. I have secured 80% from a credit union. Putting up 50% of the down payment myself and looking for the remainder 50% of the down payment through this private money loan.
Thanks!

Sam

Hello BP!

I am looking for debt investors for an 11-unit apartment building that I am purchasing at the end of August in Milwaukee, WI. I am offering a 7% return over a term and amortization of 15 years. I am looking for up to $125K in at least $25K increments if not funding all. Please reach out with any questions that you may have. Contracts can be provided upon request.

Thanks!

Sam Domach

Domach Properties, LLC

Hello BP Community!

I am looking for a maintenance manager in the Greater Milwaukee Wisconsin Area to help take care of a few properties that I have. Looking for someone that can handle a lot of the smaller level tasks that come up as well as apartment turnover, etc. If you have anyone that you know, please reach out as I would love to get in contact with them!

Thanks,

Sam

I used to work at the Kenosha plant, but now I am remote. I do my own property management currently

@Monique Pett I can't give out any good deals to a Bears fan :)

That makes sense on the property management, I would continue to include it. I would also verify the numbers from an inspection through an actual contractor if you haven't already. With raw material pricing skyrocketing lately, it could ultimately become much more expensive depending on the contractor.

I like the Milwaukee Area, good combination of cash flow and appreciation for me. 

Hey @Connie McGinnis-Loftin

The only other thing to note from what Benjamin said above is you will need to check with your lender to make sure they are okay with you getting a loan through an LLC for a residential property. There are a few ways to get around it, but you will want to make sure that they will still give you a personal, residential loan to an LLC. Sometimes if you are to borrow under an LLC they will make you get a commercial loan which will be a higher rate and typically not 30 years in term length.

Consult your lender to learn more from their end. 
Sam

@Monique Pett - Looks like a great deal!

As @Elijah Friedeman said, you should add money in for CapEx which are any major things that need to be updated/replaced. Think roof, furnace, water heater, etc. You can break these down to individual items with replacement values or usually it is typical to see a percentage there (~10% of income).

Additionally, when doing calculations, I always like to add in property management even if I am going to manage it myself because in the future, you may want to outsource that to someone else as you get bigger, so would be good to factor in.

Finally, I assume you will not be taking a mortgage out for the property and this is a single family home, so all utilities, etc will be billed to the renter? If those are the cases, then it looks like a solid investment from the numbers.

I see that you have $9K quoted for 'fixing it up'. Does that include everything on the inspection report? Are there any issues with the foundation, roof or other major components? 

Sam

@Brian Sherman - Stessa is a website/application that I have found super helpful for this. It is free to use and generates all reporting that you could ever need for real estate investing.

Hope that helps!

Sam

@Dhwani Shah - You will typically always see the appraised price lower than a listing price. That is because homes are appreciating assets and in a capitalistic environment people want to be paid for that. What I would look at is the market where you currently are. Are people leaving? Is population rising? Job growth? Etc? Those are some (not all) of the drivers that make real estate continue to grow in price.

The appraised value from the county is simply for property tax purposes. Now, if you were to choose to purchase this property in the 150K+ range, the next appraisal (either at the close of sale or next time the county gets to it) may increase quite a bit and you need to be ready for that with your numbers.

At the end of the day, run the numbers twice and then run them again. Trust them, but make sure you have them all accurate to account for repairs, CapEX, vacancy, etc. Biggerpockets has a great resource in the calculator section for this.

THanks,

Sam

@Kyle Black Well done Kyle! Great to see and will be nice to see the cash flow after the repairs.

One note: be careful with the HELOC for your next property. It always sounds like a great idea, but there are downsides. If you plan to hold the next house for the long haul, I would avoid a HELOC and look into a cash out refinance. If you are looking to flip or something in the short term, the HELOC can be the right move.

Awesome work!