All Forum Posts by: Simcha Davidman

@Tom Wagner I love this idea! Hard to do if you consume as a "multitask", e.g. while traveling or exercising, but seriously valuable suggestion! Thank you!

@Jon Hundley that's awesome! I don't want you to think I was doubting you - I just figured I'd push a bit :)

I'm sure you're gonna rock 21! Happy New Year to you too!

@Jon Hundley welcompe to BP!

I agree, it's great!

I don't know you from a hole in the wall, but I'm gonna go out on a limb here and say you're shooting way too low for 2021. Your goals need to include a lot more action. Listening to a fraction of the podcasts should give you enough info and motivation to start taking action - even if you don't yet know everything. (I'm not saying don't listen to all of them - definitely do.)

Some people are not disciplined/motivated enough to stick to their goals, and setting goals for these types is lip service. It's a waste of time and an insult to their potential. But for those that are disciplined and keep themselves accountable can accomplish just about whatever they set as their goal.

Your bio and this post lead me to believe that you're of the latter caliber. So go nuts!

Feel free to reach out if I can be of assistance.

@Mario Morales there's obviously a lot of info we would need to make a more informed recommendation. But if (1) you really know this market and (2) you can withstand the next 6 months (plus additional time for a cushion) of negative-to-break-even cashflow, then go for it!

One thing to consider is financing. How are you underwriting it so that it will break even - will a bank think there is a high enough DSCR to cover your mortgage until you can bump the income higher?

@Dean Galmidi there is a lot of info in the forums, blogs and podcasts about this. You need to really understand the risks involved before jumping in.

These deals are generally sourced by yourself (cold calls, mailers, building personal relationships with lots of people) or wholesalers who do all that stuff.

Good luck!

@Srikanth Katuru welcome to BP! While I think it's technically allowed (this is not legal or tax advice), it would be very difficult. You as an individual or an owner of any entity (or a number of related parties) CANNOT benefit at all from the ownership belonging to the 401k. So it would mean that any income/cashflow attributable to the 401k's ownership CANNOT go to you (or an entity owned by you, or one of the enumerated related parties or an entity owned by them) - e.g. acquisition fee, management fee, plumbing expenses if you do plumbing work, etc., but must go to an arm's length third party or stay within the confines of the 401k.

I would not recommend it.

But, it might also not be allowed anyway. I'm sure someone else who knows more will chime in and help out!

Hi @Melissa Perez I highly recommend @Jay Guttmann, office in Hackensack. I've known him for almost 20 years and he's a real upstanding guy. Also very good at what he does.

@Arn Cenedella thanks. Great point about the business plan! There are a lot of loan assumption deals now because people chose yield maintenance (instead of a stepdown penalty) without adequately thinking about how they will exit a few years down the road.

@Sonja Ratson welcome to bp!

Is that a quote from the commercial, or your experience?

The show notes have the sponsors listed, so it might be worth a look through the episodes you watched/listened to.

@Tj M. there are a lot variations. Are you looking at an agency (small balance) loan? Why size market, in Reno? Agency could be 3,5,7,10,12 years over 30 year amortization, anywhere from 1-6 year i/o (could possibly be full term with 35-50% down), rates 3-4% (possibly even in the high 2s), 70-75% ltv, non recourse. And getting into the loan will likely be more burdensome and costly than a local bank.

Local banks can range in amortization from 20-30 years, depending on the market, also 3-10 year terms. usually 6 months - 2 years i/o (if it's a big project), rates probably 3.5-4.5%, 70-80% ltv, recourse.

Sorry for the very large ranges...