All Forum Posts by: Sean McCluskey
Sean McCluskey has started 15 posts and replied 214 times.
Post: How To: Cash out 1-4 unit Property

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Andrew Postell Thank you again for this wonderful knowledge!
I am employing this strategy on my latest BRRRR. I told my escrow/title about it, in order to register the lien and escrow rehab funds on my HUD-1 settlement statement. The title officer asked me if the LLC would want lenders title insurance.
Do I need to pay for title insurance for my own LLC that is giving me a note, in order to get the lien recognized and paid off in a delayed finance exception? Would my next lender care about this? The next lender will require lenders title insurance anyway, so I don't need it on my own transaction, right?
Post: Flipping a property in southern California

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Andre Walker No, I think you pay income tax, at whatever tax bracket you wind up hitting.
Post: Attempting to wholesale Grandmothers Uncle house...

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Jordan Foster it sounds like you should help manage the properties for the benefit of your grand uncle, without taking a bunch of profit from family members.
He keeps owning them, you manage them for him as rentals, you charge 10% of rent like a property manager. And that experience will make you feel ready to take over if he passes and your grandmother wants to sell them to you, at a later date.
Hard for us to know all the variables but I don’t like the idea of selling my demented uncles’ houses for cheap.
Post: Studying Business at OSU, now looking for RE internship

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Steven Foster Wilson This would be your typical networking email, nothing complex about it.
Something like one of these:
1)
Hi Patrick,
I'm an MBA with 2 years of experience working for a real estate developer in China. While there, I worked in project management, acquisitions, market research and asset management.
I'm currently looking for a new role in southern California, and I'm very interested in the Acquisitions Analyst role at XYZ Industrial.
I believe I have all the skills your team is looking for in an Analyst, and I would love to give you a call to discuss.
Do you have 20 minutes free at some point, perhaps tomorrow or next week, for a quick call? I promise not to take too much of your time.
Thanks so much,
Sean
PS. I've attached an office acquisition, IRR-based waterfall model I built using the Argus AE cash flows I laid out to underwrite an active OM, as a work sample.
2)
Hi Ray,
I'm a fellow Boston University alum (2005), reaching out to you in the effort to build up my Orange County CRE network.
I've heard great things about XYZ, and I would truly appreciate the chance to learn about your experiences there and how you got to your current position as Senior Managing Director.
I'm going to be in the Newport Beach area all next week, and I was wondering if you might have time for a quick coffee chat near your office? I promise not to take up too much of your time!
All the best,
Sean
Post: Getting a line of credit with assets / credit but no job in USA

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Michael Kinsella Thanks for sharing this interesting idea.
Can you talk a little more about how this would work? Say you have the $130k of cash in a bank account after the cash out refi. Do you open a LoC with a lender and deposit that cash into an impound account, in order to get the LoC committment? And what would be the typical terms of the LoC, on rate / appraisals / term / etc?
3x the liquidity amount is the same leverage as taking the $130k and using it as a 25% down payment, 4x is the same as a 20% down payment. So I'm curious about the benefits, outside of the fact that this would not be an income based traditional mortgage?
Post: Studying Business at OSU, now looking for RE internship

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Steven Wilson You should go bigger for your internship. Get a list of all of the largest apartment owners in your area, largest developers, and all of the commercial real estate brokerages.
Contact all of the alumni at those shops with a professional email, follow up call, and real estate or financial analysis work product sample.
You can always decide to leave the bigger investment shops once you are there. But you can’t break into those roles very easily after graduation if you don’t start out in the industry.
You will learn how to work as a professional, and then be much more qualified to do your own syndication later.
Post: What would you do with $200k?

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Justin Wotring Looking into joining 3-4 syndication deals is definitely a more passive approach to investing it in real estate.
I’ve been working on the numbers for out of state multi family deals (about 60 units), and it’s truly incredible that you can still find deals that cash flow in today’s market.
Post: Credit Card Churning Using Plastiq to Pay Your Mortgages

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Frankie Woods I’ve read that only certain mortgage companies will work with Plastiq. Is that what you’ve found? How exactly do you use it?
Post: Is it WORTH Finishing my BA in Finance...?

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Andrew Pettit This topic makes my heart hurt for you. Please don’t make a mistake. You should definitely finish. How many more classes would you need?
People here on BP don’t have a good idea of the big picture, as far as high paying careers are concerned. As a Caleb H said, you can make lots and lots on money in finance.
There are hundreds of billions of dollars invested in real estate being managed by finance majors, and none by political science majors. That major won’t get you in the door. Finance would.
And even if you don’t work in finance, learning as much as you can for free while you’re young is worth the effort.
If you want to do RE deals, do the finance major and then go work for HFF, JLL, etc. as a broker. So multi million dollar deals. Go read the real estate forums on Wall Street Oasis. Raise your sights higher.
Post: What Rates are you getting right now? When Should I refi?

- Rental Property Investor
- Newport Beach, CA
- Posts 217
- Votes 138
@Adam Kay I think that these rate cuts are already being priced into the forward yield curve. The real question is, will the new larger spread between the 10 year treasury and the mortgage backed securities that our individual 30-year mortgages feed into, remain in place? Or, will MBS yields chase the 10-year treasury downwards when fixed income investors start looking for yield again?
I'm betting that the spread maintains itself longer than I want to wait, as fixed income investors currently want to lock in safety and the MBSes already traded on the market are going to be faced with substantial refi prepayments (which no new MBS buyers would want to receive right now, without a place to reinvest the proceeds).