All Forum Posts by: Steven Goldman

@Emily Lien  From a lending perspective it is a flip or a no go. It does not cover for debt service coverage purposes. If a lender will not give you a loan on it due to insufficient debt service coverage, you should not buy it as a hold. In my opinion is a flip is too tight. Values are likely to fall, rents also, rates could rise during rehab. and the project could cost over run. Three strikes its outta here. Good luck! 

Your contractor is incompetent. You should find a new contractor make sure you get recent references or as @Jay Hinrichs says: Be your own contractor since it sounds like you are. I hope you have not advanced this contractor funds as they are probably unrecoverable. 

If you have not already read : https://store.biggerpockets.co...   I recommend it. J. Scott explains when it is customary to advance money and when it is not. It is a worthwhile reference guide while you are acting as your own GC. Good luck.

I want to buy a new car. The sticker prices are pretty universal I'll just pay the sticker price. 

@Nathalie Smith Of course all real estate is local. Nonetheless, I have lived through 4 of these cycles. At the beginning of a recessionary period interest rates rise and the housing prices are too high resulting in a squeeze on the investor. After a few months the market adjusts and prices taper off with pricing more in line with the interest rates. BRRRR is not dead. However, any deal you are considering during the adjustment period must be a great bargain. You must also make sure you have allowed for the potential increase in the refinance rates and lower LTVs. We are already seeing a decrease in purchase LTVs to 25 percent for funding companies and some DSCR banks. The greatest opportunities are when the market is in flux. Our cash buyer's are all getting liquid in anticipation of the impending buyer's market. Time is your most valuable commodity. you do not know how much you have so every day is precious. Work harder and smarter but keep pushing forward! Good luck.

@Andrew Diamond    I agree with @Scott E. that while cash on cash return is important the key to real estate is to select locations and properties that will appreciate over 5-10 years. If you are holding the property the gold will be in the increase in value, the tax benefits and the increasing equity through payment of principal. This is why when we reach the end of a long upward market many investment property owners sell to take advantage of the increase in equity, They than bank the cash and pay taxes if necessary. They buy back in when the market has depreciated from a recession. Think long term not short term. 

@Jason Medina    It is only a matter of time before prices recede to match the current interest environment. Time on market is increasing which will result in prices decreasing. @Andrew Postell has good wisdom when he advises you to make the numbers work by reducing your offers to match the new rate reality. Having been through numerous cycles, those who keep moving keep growing those who stand pat lose time. Time is your most valuable commodity! Good luck.

@Holly Harvey   Bigger pockets has published a book which discusses how to calculate rehab costs. I have read it and I have rehabbed numerous properties. It is a good guide. I also suggest that you have a contractor look at the house. That is no substitute for you acquiring the knowledge you will need to be successful.

Good luck!

@Jessica Price

I have always found that seller financing is based on developing a  relationship with the seller.  When you are searching for target and make contact with the owner it is important to show interest in the owners life. Especially senior seller's. Many senior sellers do not necessarily need to instantly cash out of their house. But you will not know that until you have spent time talking to them. Ask about their future plans. It is all about rapport. Many seller's do not even know they may be a candidate to seller finance. It is an education process. You do not receive 100 percent of the things you do not ask for! Find out their retirement plans? Ask if they would you like to make a ___return on your money secured by a mortgage on property? 

As the market turns there will be many more seller financing opportunities. It is all in your relationship skills and I hate to say it, sales skills. Good luck.

As a seasoned investor, former attorney and title and mortgage brokerage owner, I have found finding and maintaining a good relationship with a contractor is by far the greatest struggle when assembling a real estate team. You never really have a contractor on your team he is just part of the process. Almost all contractors are lone wolfs and are not good team mates. Even after you have commenced a good relationship with a contractor you must be vigilant to ensure your current project does not get away from you. 

I agree with @Laura Cabral  in the future never buy a house that is not vacant unless you are assuming a lease from the seller. It is the first rule of real estate and one of the basic rules of life. Possession is 9/10 of the law. As a former practicing lawyer and investor I strongly recommend you find competent legal counsel have the entire transaction reviewed, and follow the attorney's advice as to how to gain possession of your property. Good luck.