All Forum Posts by: Victor Vella

@Joshua Filkill

I’ve done quite a few of double flips in Lakewood over past few years, let me know if any how I can help.

@Jay Hinrichs

we’re on the same page Jay - I was arguing coastal towns have apprectiating values like sports teams - not the Midwest.

Additionally in sports and real estate( that keeps going up and up) Credit based on the assets potential value is deployed to cover often what is a negative carry. 

Sounds like that was a hell of an investment!!! Honestly I would have struggled not selling the property before it reached that max value. Great zen like patience!

@Jordan Meyer

Coastal market are like owning a sports team, constant rise in value and constant tapping equity lines to reinvest in the asset.

@Caleb Bryant

Doubling down on reserves and backing off average deals. Slowing my cash burn.

Im a flipper that will slowly start to convert to a rental investor.

Are you still investing in real estate through the Covid-19 crisis?

2. Why or why not? Yes. Hard money loans and credit dries up, credit dries up competion for distressed deals disappears you may just have to wait for reflation of a cyclical. The guys that did this last time made some big money.

3. What niches are you most focused on and why? The return of cash is king.

4. Is that the same focus you had before Covid-19 or not? I’ve gone from 80% aggressive to 20% defensive to 80% defensive.

I’ve increased my cash and doubled my lines of credit. I’m looking to quadruple my Lines of credit accessibility.

@Chai Jonn

Hi Chai I do a decent volume of properties in what I would consider “starter homes” in high demand neighborhoods in Cleveland.

Lakewood, Shaker, etc

I see too many rental investors that are not overly concerned about the exit just be somewhat mindful of the exit.

Also if your interested in cash flow - have you considered partnering with a flipper in the form of a hard money lender. That market has fallen out so you might have a market looking for deals and more passive income. Not financial advise just a thought

@Hai Loc

Listed a unoccupied duplex in Cleveland Ohio last week. 33 showings in 4 days and is under contract.

I have two more properties listing in next week

Duplex in Lakewood Ohio and mid price poijt house I wonder if being unoccupied is a major advantage.

Also wonder how multi family will do over the next 6 months.....

Fingers crossed. Hoping to sell recapitalize, run to the hills and live to fight another day.

@Russell Brazil

Great words of wisdom.

I flip in sellers markets and BRRR in buyers markets.

@Kevin Lefeuvre

Massive reallocations of capital

- Stocks to cash

- margin calls (loss of capital, forced liquidations)

- destinations cities will be avoided for travel and investment

- cities like Cleveland, Columbus, Indianapolis will be preferred over Orlando Vegas

- rural and suburban options may again be a pretense over popular urban trends

Cash to where - Banks. Banks which will soon charge you to keep Capital there with negative rates.

I don’t think people are afraid of the virus , I think the fear stems from the actions takin by government agencies - maybe it’s justified maybe not.

Thoughts - In a negative interest rate environment what does the big money do and why? 

1) Real Estate

2) Stocks

3) Gold

4) Cash

Often? No.

Banks could restrict draws and convert it to a fixed line of credit, most would probably go that route.

Could it be asked to repaid in full in 30, 60 days....read the contract of the line your looking at.

It’s not a matter of how often it’s a matter of how does that affect you if they did.

Full disclosure I’m not a financial advisors, agent - just a full time investor. 

I use lines of credit but do not overleverage my self to them and basically use it to bridge deals.