All Forum Posts by: Todd Pultz

@Scott Lepore I think you have the frustration that many others do with Brrrrr! BUT, I completely disagree with 90% of your post. Let me start with what I agree with....

I agree with refinancing being harder to do than some think, but you have to develop relationships first. I can give you the number to 10 banks off top of my head that will do 70-75% LTV no problem which does not count local banks who will do it also, but 80% is fairly tough. But, seasoning is usually the challenge. Most people should underwrite their deals with the refinance being at the 1 year mark to be conservatively. However, realistically my group gets it done 6-8 months no problem. I suggest using a broker who will shop your loans for you to save time.

Where I disagree........it is not rare to find these deals, it just requires harder work! You have to be willing to hustle and grind. You have to be consistent and intentional every single day with your real estate actions! You have to be all in! This does not work for those that want to sit back and search MLS and wait for their realtor or mentor to bring them a deal. You have to get your *** out and find deals. You have to bird-dog, drive for dollars and emerse yourself in the game! If your not finding deals, it's YOUR fault! Don't blame it on a podcast that gave you rounded numbers for ease of explaining. Every single day you have to hustle and grind, answer your phone when others don't, never miss an opportunity and capitalize on others lack of work ethic. Put in the work!

Saying you have to have 290k to do 5 houses is ridiculous! How about you have to have 0! I'm not selling anything here, so don't dare try to beat this statement up, but we have closed 6 properties this years (50 doors) with absolutely 0 out of our pockets and 4 of those properties (30 doors) have already completed their refinance part at 75% LTV and all were 6-8 months. Every cent was pulled out plus cash. And on a 21 unit we stuffed close to 100k in our account after principals were paid out. Rough numbers were 290-295k purchase 90% LTP HML. Gap of 30-32k was covered by private money lender at 10-12%. 30-35k rehab was done and paid for by NOI over 6 months. Property at 6 month mark appraised at 650k. Again, you got to hustle to make relationships with private money lenders.

There is a reason why not everyone makes the NFL, MLB or other professional sports and there’s a reason why “Not every kid gets a trophy”. If it were easy, everyone would do it, but some have to work harder to get there, but understanding your flaws and weaknesses is where to start if someone is a new investor or old investor stuck in a rut. Too often, people fail at something and want to blame that something for the failure instead of holding themselves accountable.

Let me end with this. Change your strategy. BE CONSISTENT! drive for dollars every day! Get yourself lost in the city every day somewhere you have not been! Be relentless! Be a real estate savage! If **** ain’t working for you, kick yourself in the *** and change what your doing! Accept that if your not finding deals, IT’s YOUR FAULT AND NOBODY ELSES! The only person that can create change for you is yourself. How many properties did you write down and research in the last two days that had deferred maintenance or were vacant? When was the last time you talked to a wholesaler and said “THIS IS MY FORMULA, as LONG AS YOU BRING Me A DEAL THAT FITS THIS FORMULA, I WILL CLOSE NO QUESTIONS WITH YOU”? When was the last time you found a 18-21 year old aspiring real estate person and offered them commission on every single deal they bring you and offered them the opportunity to learn for free from a real estate professional like yourself?

Reading books, listening to podcasts and then griping about what you hear is one strategy! But , I prefer to hustle and grind and make **** happen instead of looking for someone to agree with me so that I can justify why I’m not able to perfect a strategy! If you want it, go get it!

@Aram Schwartz no problem friend!

@Aram Schwartz the title company is looking for defects and liens. They want to see a clear transfer of deed for X amount of years and will investigate any issues. If they report a clear title and you find otherwise, that’s what your title insurance is for. You can also check your own county records and see if anything has been filed on property. As long as the deed transfer was done from the old owner to the bank and so on, you should be fine. Title insurance would cover anything the title company fails to find. If they can’t produce a clear title they have to tell you that!

@Adam Sharp I’ve read all the comments and I think your question was a good one if your a new investor. However, your last post has me scratching my head. You listed it at 2k and had 0 bites? You listed it at $1,850 and you had 3 bites, so what do you want to raise it to? ($1950 since nobody bit at 2k??). I know you already conceded you were not going to try this and that is the RIGHT decision, but I want to make a simple observation here.

If you get $100 more per month, that’s an extra $1200 for the year. If $1,200 makes your numbers work and changes your life, you need to find better deals!

The better way to look at this is to know what rent achieves your goal for the property. Use that number as long as its in line with the comp rents and don’t ever ask this question again.

Greed is the evil cousin of success and yes what your asking is unethical and in many areas, against fair housing or at least tip toeing the line.

And.......it’s not being “cute” to charge a pet fee. That’s what most experienced investors do if they accept pets.

@Isaura Orellana while a few of your posts had some crazy numbers that didn’t make sense, I’m with you on Detroit. I don’t invest there, but there are many similar markets where you can cash flow crazy! And you can get decent appreciation, but not crazy. PM means absolutely everything and section 8 is a sweet spot that many turn from. But done right, you can kill it! Now, did you really compare Detroit to Florida??????lol! Don’t lose me, I was starting to be a fan

@Brian Hood good question. I actually think you would be surprised at how many of us do compensate ourselves for time. We use the brrr method often and very successfully. I always charge a GC fee and property management fee and these numbers are calculated right in with everything else. Even if we use rents to pay for items instead of kicking cash in, when we refi out, we pay the property back and consider that as getting all of our capital back out.

The infinite return is real. The rinse and repeat talk is real and brrr’ing a property is absolutely real. You have to buy right, rehab correctly, and manage the heck out of the property. We’ve successfully used the method on 5 multifamily deals this year and it’s very doable even after you pay yourself for anytime you put in. Even when you self manage your property, you have to pay yourself a management fee etc.

Good luck to you

@Maria D'Aura the Midwest is filled with these properties but you have to be ok with a C area. These listings meeting the 2% rule come out every single day here. C areas can be challenging for the out of state investor and you have to be engaged with the right Property management team. There are very few PM’s that can handle true C areas

If you have the wrong PM, your 2% rule means absolutely nothing because you will get eaten up with vacancies and maintenances costs.

I’ve never bought a property here that did not meet the 2% rule and most are closer to 3%.

Now, you have to understand that your not going to get the high appreciation in these markets, but you will also not get the low down swing. You will be in a very stable market that cash flows! If you believe cash flow is king, the Midwest can help you achieve that if you stay away from the bigger cities, but if your looking for higher appreciation it may not be the market for you.

I know the gal brags about detroit and quiet honestly the numbers don’t add up in some of the post and I have called those out. But.....I’m trying to sell you absolutely nothing and will tell you that you can find 3-3.5% cash flowing properties often here in Dayton, OH.

Good luck to you

@Shakiah Naverre hopefully your ARV is quite a bit higher but assuming it's not, you would need to appraise at 33500 to get your money out at 75% refinance. We have plenty of banks that will go down to 40k, but as @Joe Villeneuve said, that does not even make sense after you pay fees and closings etc.

Do you have 2 other properties? If so you could use them and this one to do a portfolio refinance which could make sense based on the other property values. However, I would not want to leverage a 25k house if that’s all you have in it.

Heloc is an option as others have stated.

Maybe leverage it at the beginning. There are several lenders out there that will do a single close rehab to rental loan. Assuming you need rehab money and the loan amount would qualify. Typically, my lenders want a total purchase loan of 60k to fund it but that can include the rehab funds

@Tyler Dix everyone has had some good points so I’m not going to say the same thing over again. I’m going to change my advice a little.

While this is exactly what BP is for, your question indicates you have not taken the time to understand yourself exactly what you expect from people on your team. You need to be confident in your expectations. Once you know exactly what you want and expect you can coach in the moment if someone is not hitting the mark you set.

Have you given them clear guidelines on how you want to be communicated with? Every person is different.

However, I do agree with some else on software. I manage my own properties which is hundreds of doors and also run a PM company. We use software and update work orders in the moment. The tenant, owner and tech get the same update at the same time. You need your property management to be technology heavy to assist with communication and other items

@Dezmin McCoy @Mike De Lota I saw you say that you can't refi if the LLC holds the title? What are you referring to on this point? I'm just trying to understand before I comment.

@Dezmin McCoy LLC's, tycially are not expensive , but having the attorney draw up the articles and operating agreement will be a necessity.

So here is a few ideas and it would be contingent on the state laws as I don’t know them.

1. Whether you bought it in your name or the LLC, you could simply draw up a joint venture with anyone not on mortgage or LLC

2. If you bought in a personal name, you could sell on land contract to the LLC (state laws very) but land contract is common here in Ohio for more creative investors