All Forum Posts by: Tony Nguyen

Hey guys,

I'm debating about dabbing into the Section 8 housing pool as a landlord and want to know if any of you have had good or bad experiences. Do you recommend it? Why or why not?

I see green lights all the way, but from my general past experiences, this is when I should pull over, get out of the car and look both ways :cool:

Vikram - you're right, nothing is riskless.

Bryan - yes, these are all flips. No holding here =) I personally wouldn't use a HML for a buy and hold by the way. The cost would be too high for me to cash flow properly.

Joel - The lender I'm using is actually a hard money lender with points and rates (2 points at closing and 16% annually), but I think due to the relationship and past property performances, they are comfortable lending to us property after property. Essentially, we initial put out about 125k and they've lent us almost 300k already and that's only for 1 fund. In regards to our ARV, we're pretty conservative and have not seen any listing DOMs go past 30 days. You are right about being careful about burning the relationship with our lender and that is something I take care of personally. Thank you for your comment and thoughts.

Hi Vikram - Having a big equity cushion is a great idea. To me, that makes a ton of sense when you're buying a property you're holding for X amount of years. Do you still do the same when you're rehabbing a property you'll be out of in 3 months or less?

Thanks for all the responses everyone.

The average hold time for these properties with HMLs on them is about 2-4 months, tops. nothing has lapsed over 4 months. I do see that it is high leverage and will have to run the numbers (after I send this message) to see if it's over leverage or not. If I am still coming out w/ a profit in the end, is the over leverage still considered bad?

Surprisingly enough, the HML I'm using is just 1 lender, not multiples. They are whats called "relationship lenders" and are lending us based on our past performance. I would love to refer you guys the contact info, but they are local here in Orlando and drive by to inspect every house before lending. Don't think they'll go out of state =) If you do buy in Central FL though, email me and I'll be happy to send you their info.

Hey guys,

Like any other investor, I'm always looking for ways to grow. I will share with you a simplified scenario of what I'm doing below and I would absolutely love any feedback from you guys about if I'm using enough leverage, how can I leverage more, etc...

Property 1
Initial Investment/purchase price: 100k
Purchase ARV: 150k
Obtained Hard Money: 95k

Property 2
purchase price: 95k
Purchase ARV: 140k
Obtained Hard money: 90k

Property 3
purchase price: 90k
Purchase ARV: 130k
Obtained Hard Money: 85k

** This stream continues on for another 2-3 properties. I am basically taking out a HML on every property in order to help buy the next since my money is tied up in property 1. I wanted to see if you guys see any room for improvement in regards to leverage so I can grow faster (what we all want!). Thanks in advance!

speak to a mortgage broker. the one i use get pass the 90 rule very often.

good thought Joel.. what about the inside? type and signed? handwritten all the way? what do you prefer?

Bryan - good thing to point that out! I would prefer to use rules of thumb to SCREEN apt deals as well. What do you mean about 50% rule for the fomer activity and not the latter?

thank you, thats makes sense Jon. Yes, my list is only 50 @ this point. There are only that many in my area that has requirements that fall into my perimeters.

Jon - thanks for the advice. I'll take Lindahl's material and tweak it to make it more personal.

Andy - When you sent out, did you ever filter them based on LTV or do you just blanket all 5+ multifamilies between 100k-300k?

Ben - Great way to make money, I appreciate that.

Realtyman - I agree!

So do you guys have a preference - postcards or sealed letters?