All Forum Posts by: Vaibhav Puranik

HI all, we are going to meet on Zoom for our first event on December 17th at 6 pm PST. If you are based in Los Angeles and invest in multifamily anywhere else in the country, this meetup is for you. 

In the first meeting Savannah Arroyo will present her multifamily deal. You can RSVP at -

https://www.meetup.com/los-ang...

Hi Ron, I recently got my 5th mortgage. There are many lenders out there who will give you 5th mortgage, especially given that you have equity in the houses. Don't go to bigger lenders such as Bank of America or Chase. Go to smaller lenders such as Cardinal Financial (I am not sure if they do business in TN). Local banks and credit unions will be great. 

You can also try with online only lenders such as better.com. You can also try submitting an application to LendingTree.com or lowermybills.com. They will sell your information to 3 to 5 lenders and those lenders will call you. 

@Amit Lala I would recommend the following two books:

The Book on Rental Property Investing: How to Create Wealth with Intelligent Buy and Hold Real Estate Investing by Brandon Turner
Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple by David Greene

Hi @Leland James - This is just a tactic to effectively reduce buying cost. There are two things a buyer can fiddle with. The actual buying price or the terms of the contract. They are simply asking you to change the terms so that their cost can be saved. This gives you a good feeling of selling the house at a price you want, but actually you are giving up something else, thereby reducing your effective sale price. I know an investor who always offers sellers the selling price they are asking for, but asks for different kinds of seller credits.

I am assuming that you have a real estate agent representing you. If yes, he or she is the best person to explain the monetary impact of these terms. 

Whether you should accept it or not depends upon multiple factors, but the most important factor is whether you can get the price you are asking for with the normal terms (buyer pays their own closing costs). 

In the current scenario, I would prefer to have it all rented out with renters who have paid the rent throughout the COVID lockdowns (or renters working in an industry that's not affected by COVID). 

@Stephen Lynch - I am exactly in same boat as yours. I have 4 investment properties and 1 primary residence. I recently did a cash out refii to pull some cash out as capital for my next property. I hated paying closing costs, but a friend and mentor asked me to run IRR numbers given the fact that I am getting money in hands right now that can be reinvested. But I only did it because I didn't have extra cash at hand!

If I had ample cash at hand, I wouldn't have done the cash out refii. 

But another thought would be to take advantage of the situation - low interest rates and high property valuations. It's' possible that property valuations will go down and you may not have the option of cash out refii next year. 

I think the answer really depends upon lot of factors and mainly your tolerance level. I have had a condo that was negative $500 cashflow per month! But again I am in California and I had a solid income from my w2 job and the I knew the condo would appreciate really well. Exactly that's what happened. I sold that condo for $300k more than what I had bought for. Thus my IRR was approximately 17%.

You will have to ask these questions to you - Is the negative cashflow $50 or $500? Ultimately will the investment be profitable if you keep it for say 5 to 10 years? Do you have solid income stream to support the negative cashflow? Because it's easier to buy this property (as the seller is your parents), will your real estate journey begin finally? I would say, if this property makes you jump in real estate, then it might be worth it as you will learn a lot out of it. 

It's very important that you modify whatever Biggerpockets podcasts or members say based on your situation. 

Hi @James Balducci, what you are attempting to do is known as 'House Hack'. Usually it's a great strategy to get started. getting a mortgage at a low downpayment really depends on your risk tolerance, but in general, it's not a bad idea at all. 

I would recommend you to read the following books -The House Hacking Strategy: How to Use Your Home to Achieve Financial Freedom by Craig Curelop and Set For Life  by Scott Trench.

@David New There can be multiple types of private lending - one by buying notes and other where you are lending money to real estate 'sponsors' for their syndications. Here are couple of good books for syndications - 'The Hands Off Investor' by Brian Burke, 'Raising Private Capital' by Matt Faircloth. There is also 'Real Estate Note Investing' by Dave Van Horn. 

@Cameron Lim I have experienced the first transition as I have more than 4 properties. I have yet to experience the portfolio lender transition. 

I invest local as well as remote. I have properties in TX and CA. 

You can learn more about portfolio lenders by googling about it. Here is one such link - https://www.investopedia.com/terms/p/portfolio-lender.asp#:~:text=A%20portfolio%20lender%20is%20a,lender%20who%20services%20the%20loan.