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re: Information for my fellow Real Estate Investors
Posted on 8/23/16 at 10:33 am to stevengtiger
Posted on 8/23/16 at 10:33 am to stevengtiger
Are You Going for the Gold, or Were You Not Even Invited?
quote:
As I write this, the summer Olympic Games are going on in Rio. And as I watch the competition, I can’t help correlating the Games to my life as a real estate investor in Dallas, Texas. At the Olympics, we see the top athletes from around the world competing at the highest level of their abilities, against the highest level of competition they will probably ever face in their entire careers. No matter how accomplished they are as athletes, it is their level of preparation that determines their success—or lack of it—in that competition. It reminds me so much of what we are seeing today in the residential real estate markets across the U.S. Many investors, including myself, are seeing levels of competition among investors we’ve never seen before. The housing markets are booming all over the country—metropolitan markets, rural markets, big markets and small markets. The number of investors in the marketplace is at an all-time high. And whether you’re looking for single-family homes or multifamily condos, the inventory levels are at all-time lows. It’s very much comparable to an Olympic competition where you’re competing amongst some of the best and you’re competing at some of the highest levels to succeed. I look at the level of preparation some of these Olympians have gone through, and I think about what it takes today for a real estate investor to prepare himself or herself to compete successfully in markets that are so competitive, so hot and so tight. What I see are three key differentiators that will enable a real estate investor to elevate himself or herself above the rest in order to compete at the highest level possible, much like what our Olympians are doing right now in Rio.
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Posted on 8/23/16 at 11:02 am to stevengtiger
quote:
We have been able to add an extra $250 to principle on each loan per month with cash flow and still be able to have a good supply of cash on hand.
good strategy. Mine is a little different. I'm just building up the cash flow from all properties until i'm finally getting an amount annually where i can start paying off remainder of loans. Basically building up with leverage to use later when deemed necessary.
Posted on 8/23/16 at 11:04 am to Fat Bastard
quote:
Basically building up with leverage to use later when deemed necessary.
I like this too.
We have enough cash on hand to handle any emergencies but I would rather get our loans down as much as possible. We have two properties fixed and two on 5/1 deals. Trying to get them down enough when that 5 years runs out, we are stuck with a huge balloon if rates go up more than a few points (which doesn't seem likely anyways).
Posted on 8/23/16 at 11:12 am to stevengtiger
quote:
We have enough cash on hand to handle any emergencies
smart and wise. me too.
quote:
but I would rather get our loans down as much as possible.
i get it
quote:
and two on 5/1 deals.
tell me more about this? some kid of lease option?
Posted on 8/23/16 at 11:18 am to Fat Bastard
5/1 ARM with a 15 year amortization
5 years at fixed rate and ARM at the sixth year.
Banker wouldn't offer fixed rate deals after our first two properties without a higher rates. Kind of sucks but we are cash flowing pretty well and paying them down fairly quick.
We are looking into bundling them into one loan soon. I know a guy who just bundled 5 homes into one 15 year fixed loan around 4.25%. Have researched this a little but haven't had the time to meet with the bank yet.
5 years at fixed rate and ARM at the sixth year.
Banker wouldn't offer fixed rate deals after our first two properties without a higher rates. Kind of sucks but we are cash flowing pretty well and paying them down fairly quick.
We are looking into bundling them into one loan soon. I know a guy who just bundled 5 homes into one 15 year fixed loan around 4.25%. Have researched this a little but haven't had the time to meet with the bank yet.
Posted on 8/23/16 at 3:38 pm to stevengtiger
gotcha
I know a company who does this. They give commercial loans also and do not check your credit. Only look at the deal. I am about to get with them for my next purchase and check it out.
quote:
I know a guy who just bundled 5 homes into one 15 year fixed loan around 4.25%. Have researched this a little but haven't had the time to meet with the bank yet.
I know a company who does this. They give commercial loans also and do not check your credit. Only look at the deal. I am about to get with them for my next purchase and check it out.
Posted on 8/23/16 at 3:41 pm to Fat Bastard
If you have some success with them, we may need to exchange contact info. Keep me posted.
I enjoy my banker and the team at the bank I use but if I can find a deal that makes sense, I wouldn't mind shopping. I would always let them have a look before I moved my business to see if they could match but I would really like to hear more.
I enjoy my banker and the team at the bank I use but if I can find a deal that makes sense, I wouldn't mind shopping. I would always let them have a look before I moved my business to see if they could match but I would really like to hear more.
Posted on 8/23/16 at 3:51 pm to stevengtiger
quote:
If you have some success with them, we may need to exchange contact info. Keep me posted.
not a problem. As aggressive and driven as some of us RE guys are on here i had a feeling some of us may be exchanging info through back channels before it is all said and done here.
Posted on 8/23/16 at 5:00 pm to Fat Bastard
quote:
quote: I know a guy who just bundled 5 homes into one 15 year fixed loan around 4.25%. Have researched this a little but haven't had the time to meet with the bank yet.
I wouldn't mind knowing which bank does this if you're comfortable sharing I'm at 4/5, 20 yr amor, 7 yr balloon on my real estate. Option to lock the rate an additional 5 years at the balloon for either $500, or $1,500.
Posted on 8/24/16 at 1:26 am to Fat Bastard
Haven't read the whole thread yet, but are you guys talking about commercial real estate at all? I want to learn more about it. I have a couple residential properties in Hawaii and am looking to add a 3rd but with the prices I'm looking at and how quick they're scooped up I started wondering if maybe I could have a better return/more options with commercial. Any advice or where to start? I just joined BP and will start reading the forums. Glad this thread is here 
Posted on 8/24/16 at 8:21 am to Iowa Golfer
I have a call into my realtor this morning. I'll see if I can get the bank info and I'd be glad to pass it along.
Posted on 8/24/16 at 8:26 am to stevengtiger
Thanks, I appreciate it.
Posted on 8/24/16 at 9:03 am to Iowa Golfer
Aneca Federal Credit Union and Gibsland Bank and Trust.
Both are local NWLA smaller banks that can offer this type of package. Got word that the guy was able to roll 8-10 properties together on a 20 year fixed deal around 5.25%. He is a younger guy with not much capital besides his REI and my realtor gets the idea that with some more collateral and credit, you could get closer to 5% or less.
Both are local NWLA smaller banks that can offer this type of package. Got word that the guy was able to roll 8-10 properties together on a 20 year fixed deal around 5.25%. He is a younger guy with not much capital besides his REI and my realtor gets the idea that with some more collateral and credit, you could get closer to 5% or less.
Posted on 8/29/16 at 3:25 pm to stevengtiger
Steve and Fat -- appreciate the feedback on my previous posts.
Next question: how do you try and estimate property value before you purchase a property? Do you run a comparative market analysis? How do you run a comparative market analysis without access to MLS?
Next question: how do you try and estimate property value before you purchase a property? Do you run a comparative market analysis? How do you run a comparative market analysis without access to MLS?
Posted on 8/29/16 at 3:53 pm to TheOcean
I am still very green in my RE investments. I count on my realtor a lot on this type of information.
Usually when we walk into a flip property prospect, he gives me an estimate on rehab costs, potential issues and estimated selling price once work is completed. He has a few flips happening at any point in time and is typically pretty close on his estimates. He will have several properties pulled in the area and what they sold for in the last 6 months or so.
When we look at a rental prospect, he has the same information but also will have pulled rental listings for similar properties in the area. He will drive around neighborhoods and call for rental amounts to signs he sees on the street too.
He has been extremely important to us over the last year and a half and has made my LLC some good money for the amount of work we have put into it. If you are going to do it part-time and have no experience, I can't stress enough how important having a partner in the business has been to our successes.
ETA: On the flip side, I know he won't be right every time on every property. We also have certain things that we look for when purchasing. I'm sure we will lose money on a deal from time to time, but hasn't happened yet and I can't imagine how it will on the property we are currently working on.
Usually when we walk into a flip property prospect, he gives me an estimate on rehab costs, potential issues and estimated selling price once work is completed. He has a few flips happening at any point in time and is typically pretty close on his estimates. He will have several properties pulled in the area and what they sold for in the last 6 months or so.
When we look at a rental prospect, he has the same information but also will have pulled rental listings for similar properties in the area. He will drive around neighborhoods and call for rental amounts to signs he sees on the street too.
He has been extremely important to us over the last year and a half and has made my LLC some good money for the amount of work we have put into it. If you are going to do it part-time and have no experience, I can't stress enough how important having a partner in the business has been to our successes.
ETA: On the flip side, I know he won't be right every time on every property. We also have certain things that we look for when purchasing. I'm sure we will lose money on a deal from time to time, but hasn't happened yet and I can't imagine how it will on the property we are currently working on.
This post was edited on 8/29/16 at 3:55 pm
Posted on 8/29/16 at 10:04 pm to stevengtiger
Do you have a minimum hold time or some form of pre-payment penalty on these loans?
Posted on 8/30/16 at 7:58 am to Balloon Huffer
No minimum hold or penalty for early payments. Goal is to have all rental properties paid off in 10 years from date of purchase. We are on a good path to get that done.
Posted on 9/14/16 at 2:30 pm to stevengtiger
quote:
stevengtiger
just signed contract on a duplex. ran my numbers. NOT counting vacancies or maintenance this baby will yield a 34% COC return annually.
So i've gotten this ball rolling. Already got my insurance quote from provider. Getting documents underwriter will need lined up ahead of time. I'll update when I get reports from my inspector. They are almost done with minor rehab work.
Posted on 9/14/16 at 2:40 pm to Fat Bastard
Where abouts?
Posted on 9/14/16 at 2:54 pm to Fat Bastard
quote:
this baby will yield a 34% COC
Damn son! That is a homerun man!
Around Laf, assuming?
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