All Forum Posts by: Scott Wolf
Scott Wolf has started 43 posts and replied 1796 times.
Post: Our First Fix, A Little Flop, But Survived, And Success!
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Christian Solaita:
Investment Info:
Single-family residence fix & flip investment in Fayetteville.
Purchase price: $108,000
Cash invested: $35,000
Sale price: $187,400
3 bedroom, 2 bath, 2000 sq. ft.
What made you interested in investing in this type of deal?
My wife and I took the leap of faith not knowing what will happen. Our mind was set that if we don't start now, we will never begin. Our expectations were to learn as we go, seek advice, and always stay positive. It was hard staying positive especially when unexpected repairs came up, but we stayed the course.
How did you find this deal and how did you negotiate it?
It was on the MLS. We reached out to Realtors in the area and let them know of what we were doing. We kept looking on FB groups and found this property. Immediately called within 10 mins of the property posted. It was first listed at $120K. We negotiated down to $110K, my wife wrote the contract, and accepted within hours. My wife and contractor walked the property to do rehab estimate, found more damage than expected. We got it down to $108K.
How did you finance this deal?
We had a private lender. My wife was her Realtor to sell her house and buy another. Then my wife asked her what she was going to do with her money. My wife then told her we were looking for private lenders willing to become our equity partner in all the fix/flips. She agreed and offer to $150K first and is willing to go higher after the first deal.
What was the outcome?
We listed the property for $187,400 and accepted an offer for full price. Looking to make a profit of $22-$25K. We will split it with our private lender 50/50. Then do another project again.
Lessons learned? Challenges?
- We will now use staging. We had showings everyday with 4 offers but they were all low offers. We just had photos and virtual tour (Matterport). But my wife decided to add staging and the next day we had a full price offer.
- Don't go cheap on the oven. We upgraded the single oven to a double. Big difference.
- Always budget for unexpected costs.
- Don't ever paint 1970's cabinets to save costs. Just replace them. We spent more money on labor and time.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes. My wife. Sarah. I am biased but she has been a Realtor for the last 12 years in Fayetteville with vast experience. She worked for a builder as Director of Sales and Marketing, managed numerous rehab projects for out-of-town investors, and continued to sale/buy real estate. Sarah Solaita works with Fathom Realty.
Congratulations! Just an FYI, the private lender seems more like an equity partner here than an actual private lender. Having them be an actual lender that charges you interest instead of taking a portion of the equity, will help you net more dollars in your pocket.
Post: "1 hour from New York City" challenge
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Patrick Ruff Stamford has a direct morning train that is under an hour, and you get the benefit of lower CT property taxes. You may not make the $300k price range, but that's slightly more achievable in Norwalk CT, which is right next door.
Post: Multifamily Outlook in Manhattan New York
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- Boca Raton, FL
- Posts 1,916
- Votes 932
@Jared Forman, obviously everything needs to be underwritten properly, and using 2019 numbers right now is just unrealistic. Vacancy for some of the landlord's I know are already over 10% and a few are just taking the money they can from tenants.
I do believe NYC will bounce back, due to the diversity of all the businesses here. There will definitely be pain in the comeback on the landlord side, as the business side is already feeling it.
Post: If you were in my shoes
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Jesse Nelson, perform well, and after you pay him back, ask him to roll it into the next BRRRR you do.
Post: New York Real Estate Lawyers,
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- Boca Raton, FL
- Posts 1,916
- Votes 932
@Marvin Bobb did you get in touch with him? Otherwise, I can recommend another attorney if you'd like.
Post: Looking for Househacking Advice..
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Jason Ruello:
I live In New york and I'm looking to start my REI via househack. Being that this is all New to me, the one thing that worries me is landlording. Having the emergency funds for random repairs and so on is my biggest concern. I know you cant put a number on it, but roughly hiw much should be put aside for just in case scenarios? Is this a ridiculous question? I'm open to any and all advice. Thanks ahead of time for anyone willing to help. - Jason
Welcome Jason! While you'll never be able to put an exact amount on anything that comes up, this comes down to due diligence. Make sure your inspection report is on point, and if something needs to be done in the near future (say a roof) you need to add room for it in your budget. For a general rule of thumb, a lot of people model in 5-10% that they put aside every month for repairs and maintenance.
Post: Living in New York, Considering Out of State Investments
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Ali Syed:
@Scott Wolf, Scott! Thank you for jumping in! While house hacking sounds great, I don't think my situation needs it. I am currently happy living at my parents home for the foreseeable future, so i'm not concerned with where I will need to live. Regardless, I appreciate your advice and think it's super valuable. Maybe I should consider using an FHA loan and pay a small downpayment on a home regardless outside of NY. Do you see any disadvantages of me purchasing a rental property in Florida while living in NY? I have the ability to travel if needed.
Also, while a pay increase sounds super nice, I think that my company might adjust my salary if I "moved" to Florida, so there's that. But worth a shot and i'll keep it in mind!
Would love to get your perspective on what strategy or venture I should consider pursuing first btw. Considering I can afford a higher risk, should I be focussing on finding foreclosures or homes that need work, get a loan to fix them, and then flip? Or stick to a passive rental property as my first unit?
You can't use an FHA loan if you don't intend to live in the property.
As for the strategy you should use, only you can decide that. I have no idea what your risk tolerance is, or your free time to focus on a flip. Best of luck!
Post: Living in New York, Considering Out of State Investments
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Ali Syed, since you will be working from home, I'd look into house hacking using an FHA loan to get into RE with a small downpayment. The area is up to you, but your money will go further outside of NY(and if you're truly remote, you can move somewhere like Florida and get a pay increase by avoiding state income taxes).
Post: How would you invest $60,000?
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- Boca Raton, FL
- Posts 1,916
- Votes 932
Originally posted by @Taylor L.:
Originally posted by @Scott Wolf:
Originally posted by @Forrest Faulconer:
Originally posted by @Scott Wolf:
@Forrest Faulconer, I'd invest in a syndication.
Any particular syndications you look for? What terms do you find favorable?
I look for multi-family, industrial or data center deals. For most, you need to be an accredited investor. I also look at the syndicators track record, and references. As for deal specifics, I like a 8% return with at least a 2x equity multiple and a favorable waterfall (at least 70/30 hopefully better).
Data centers sound interesting. I've focused on multifamily and self storage for my active & passive syndication investments but data centers sound like an interesting one. Any particular sponsors you'd recommend looking into?
My answer to the OP's question is exactly what the plan is for my current cash: My next multifamily syndication deal.
Hi Taylor, I'm actually still looking into Data Centers and syndications of them. It's taking a lot more legwork to find, as a lot of these are deep pocketed institutional guys. But I know I'll get there!
Post: New York Real Estate Lawyers,
- Lender
- Boca Raton, FL
- Posts 1,916
- Votes 932
@Marvin Bobb Henry Graham of Cooper Paroof is great. A Google Search will turn up his contact info. You can let him know I sent you.