Looking to Help Beginners ! (Investing , Financing, Managing)

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Looking to Help Beginners ! (Investing , Financing, Managing)

Account Closed
Upstate, NY · Member since 2016 · 200 posts · 277 votes

Hey all,

 I am on bigger pockets simply because I want to help beginners make that leap like I had to all on my own before I knew about bigger pockets.  A quick blurb on my experience : 

I am a serial House Hacker 

I am a Bank Manager for a large Bank 

My wife is a Real estate Agent specializing in Flips and Investment Properties

My friend and I have a total of 104 rentals in our area which are all self managed he owns the bulk of the 104 rentals

Also my father is an attorney and my mother is and has been a real estate agent my whole life.

I have lived with tenants , managed my own properties, helped grow and develop a property management team,  helped investors find deals,  helped investors get financing , and a bit more ! 

That all being said I have a bit of experience in buy and hold , financing traditional and creative , self managing, and MLS deals and using the MLS. I am still learning myself (always will be) but I feel like I can help people analyzing deals and making the leap into REI!

Please feel free to ask anything that comes to mind and I will try my best to answer all questions. 

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Pao Yang
Real Estate Professional · Oak Creek, WI · Member since 2016 · 4 posts · 9 votes
9y

Hello,

I'm new to REI, just graduated from college, and fell upon Robert Kiyosaki's books. It lead me to start watching REI webinar, and and attend seminars. Learned a great deal, and they keep saying take action. Only problem is, where do I even start?! REI is and has so many strategies and topics, where does a beginner even begin to take action? I'm currently enrolled in Rich dad's seminar 3 day beginners real estate program ( Plan to stop due to high fees for the program). I've been reading REI books, mostly general strategies. And I've been analyzing properties mostly on the MLS. I'm trying to connect with local REI clubs, and meets with local BP, as well as local REI investors/agents. All of this is a load of great information, but doesn't really have a decent structure on where someone like me with no experience even begin. Any suggestions would help.

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  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Jerad Gardner:

    hey there so I was curious about something, im looking into getting a FHA loan on a multi family property and house hack it in Minnesota in the St. Paul/Minneapolis area. this will be my first property I buy, so since I qualify for the first time home buyer programs could I use one of those down payment assistant loans they offer to help pay for the down payment on the FHA loan? if anyone could give me some answers about this or refer someone to me who might know that would be great!!

     Was your question answered ? If not I may be able to help ! 

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Pierre Toussaint:

    Wow, this forum has blown up.  Bryan's probably not able to get to a lot of questions. @Joseph Scott, I'm new too, but responding to your question 6 days ago, have you checked out local REI clubs? II have, and it's awesome!! You'll hear a lot about creative financing and more importantly, meet a lot of people who are using it. Could be helpful to get some one on one direction initially.

     It's been tough to get back to everyone ! 

    I didn't mean to come off as a guru ! I am still a newbie in many way myself but have started to gain momentum and wanted to help a few others get feet wet .  It turned into something pretty insane !  I just hope I can help a few people without giving any bad advice ! 

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Christian Uraga:

    I am 20 years old, do you think lenders will take me as a joke?  I feel that if I ask for their help, I will get denied.

     Hey Christian sorry for the delay I have been traveling with my day job for a couple days !   The simple

    Answer is no !  It's more about income and other qualifications .  Actually it goes against federal regulationl for a bank to judge anyone or make decisions due to age .  I believe it's the fair lending act if you want to look it up !  Debt to income ratio , income , credit score , etc are always the key factors . 

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Brandon Johnson:

    @Jonathan Heltz

    I recommend getting your agent to set you up with email searches from the MLS that match your criteria. It could be for certain neighborhoods you want to be in, certain zip codes or they can even draw an area on a map for you. I would ask for a notification every time a listing either becomes a new listing, changes price, goes pending or completes a sale in your area.

    You may get bombarded with emails, but if you look at all the listings that ping your criteria then you will start to develop a good understanding of what the comps are in your area just by looking at so many deals.  When I ask for comps from my agent I am requesting the year of sales prior to the flood as well as all sales since the flood.  

    The "MLS client view" will allow you to see photos if they exist and you can know if you are looking at a flooded and gutted house or a rehabbed house, but the listing and sales price should tell you right away if it is gutted or restored. I also get the "CMA summary" view which is a spreadsheet format to easily run through all the listings and see things like square footage of living area, number of bedrooms, days on market, list and sales price and average and median prices per square foot.

    Keep at it and you will get the right deal. I also recommend you attend your local real estate club which is The RING / Baton Rouge REIA and connect with local wholesalers. Wholesalers are bringing tons of deals right now that can often be purchased for less than those on MLS.

    Take massive action and I'll see you at the top!

     This Is great advice !

    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Gilbert Joseph:
    Originally posted by @Account Closed:

    Scott Schreiber I personally do not invest in those areas but I'm sure they support buy and hold investors . If you are willing to work within a 2-3 hour of your home there is going to be a great market in that area somewhere !

    As far as predicting rents the best tool I have used is honestly Facebook . It works like this.

    Each city, area, and or county I have ever seen has a ton of group Facebook pages dedicated to apartments for rent and garage sale pages. You can search for the pages and join them . For instance my area has " XXXX county garage sale " and " XXXXXX apartments for rent." Groups. These pages are littered with apartment postings from Large Multifamily's to SRF . These posts are usually a landlord posting picture of an apartment for rent along with price . Just by seeing the amount of interest and comments that post has you can begin to gaging market rent . People will literally comment "this is to expensive for a one bedroom" or "wow what a great price " and you can see how
    Many people are begging to go see this property . For me this has helped me immensely . IMO most of the online rent estimates are terrible in my market . One of my properties is supposed be rented for 1200 per apartment or some nonsense when they rent for 600-650 .

    All in all trust the end renter on Facebook and see what they are willing to pay and rent these
    Properties for . Use your judgement to adjust based on comps .

    This was amazing advice, so simple yet very effective. Thank you !

    Thanks it has worked wonders for me !  It's one thing to see what zillow says a place will rent for but it's much better to see what real people say and pay ! 

    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Tom Chen:

    Hi guys,

    Here's a bit of a predicament.

    Currently, I plan on investing in Syracuse. Multi-family homes on the low end can be around the $30k range that needs a lot of work or up to $80k that won't need any work.

    I have about $20k liquid...

    The issue is, if I buy a low end property, I don't have enough to do the rehab.

    If I buy the higher end property, I'm afraid I won't be able to BRRRR out because the area doesn't appreciate in value.

    What would be the best move if you were me and this is the first deal?

    Thanks in advance!

     I would assume the area is similar to mine .   If you can get a nice cash flow do you need to refi out ?  I don't usually refi out because my area doesn't support it . I just close the deal fix the property and then earn cash flow . It just isn't In the cards for me at the moment either . 

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Kuba F.:

    Hey @Conway Churaman

    There's no shame driving an entrepreneur mobile and living with your parents, especially when they're not well.  I think that's time well spent.  

    You should hang out in the wholesaling forum https://www.biggerpockets.com/forums/93-wholesalin... to get more of an idea if it's for you.  Many active folks in that forum are in Florida, so I'm sure you'll connect with someone.

    This is great advice !  Family is important 

    1Reply
  • Jorge Ubalde
    Real Estate Investor · Glen Burnie, MD · Member since 2017 · 58 posts · 21 votes
    9y

    hey Bryant - newbie investor here as well as well as newbie to the posts/forums. I just completed a cash out refi of my 1st property that I tsubsequently turned into a rental property in Miami, FL. I withdrew $45,000 and still able to cash flow $400+. Im ready to hit the floor running but would like to leverage OPM to allow me to keep more cash available for addtl properties. Any suggestions? If you were in my shoes, what strategy would you use to pick up your next property? Thanks

    1Reply
  • Jorge Ubalde
    Real Estate Investor · Glen Burnie, MD · Member since 2017 · 58 posts · 21 votes
    9y

    Sorry about the e in front of your name Bryant. :)

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Jorge Ubalde:

    hey eBryant - newbie investor here as well as well as newbie to the posts/forums. I just completed a cash out refi of my 1st property that I tsubsequently turned into a rental property in Miami, FL. I withdrew $45,000 and still able to cash flow $400+. Im ready to hit the floor running but would like to leverage OPM to allow me to keep more cash available for addtl properties. Any suggestions? If you were in my shoes, what strategy would you use to pick up your next property? Thanks

     Wow what a nice way to start on accident lol !  As far as strategy I would find out what's important for you .  I like monthly passive income so buy and hold works for me ! That may be a way to go for you as well . If you like larger lumps of cash and don't mind working for it flipping or

    Wholesaling may be better for you . It's just all about passion.  

    1Reply
  • Jorge Ubalde
    Real Estate Investor · Glen Burnie, MD · Member since 2017 · 58 posts · 21 votes
    9y

    Bryant - thanks for taking the time to rep,y to my post! I too would prefer buy/hold strategy. Talking to a real estate buddy from Miami, he says market is saturated with folks trying to work flips. Im not trying to compete with those folks. One of my passions is multi-family investing to help create multiple streams of passive income. The issue is MF properties are a pricey in Miami, FL which is why I would entertain leveraging or partnering up with someone to help share the upfront costs. As I mentioned, I am pretty new to the creative financing, private/hard money arena. Any advice?

    0Reply
  • Christian Uraga
    Bayonne, NJ · Member since 2017 · 16 posts · 1 vote
    9y
    Originally posted by @Account Closed:
    Originally posted by @Christian Uraga:

    I am 20 years old, do you think lenders will take me as a joke?  I feel that if I ask for their help, I will get denied.

     Hey Christian sorry for the delay I have been traveling with my day job for a couple days !   The simple

    Answer is no !  It's more about income and other qualifications .  Actually it goes against federal regulationl for a bank to judge anyone or make decisions due to age .  I believe it's the fair lending act if you want to look it up !  Debt to income ratio , income , credit score , etc are always the key factors . 

    Is it true that some lenders don't check your credit score, you just have to prove the outcome of the flip and they will take a percentage?

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Christian Uraga:
    Originally posted by @Account Closed:
    Originally posted by @Christian Uraga:

    I am 20 years old, do you think lenders will take me as a joke?  I feel that if I ask for their help, I will get denied.

     Hey Christian sorry for the delay I have been traveling with my day job for a couple days !   The simple

    Answer is no !  It's more about income and other qualifications .  Actually it goes against federal regulationl for a bank to judge anyone or make decisions due to age .  I believe it's the fair lending act if you want to look it up !  Debt to income ratio , income , credit score , etc are always the key factors . 

    Is it true that some lenders don't check your credit score, you just have to prove the outcome of the flip and they will take a percentage?

    I have never heard of a lender that doesn't pull a credit score .  Some lenders care more about the deal sometimes with a commercial large unit building however they will still underwrite the buyer and pull credit .

    1Reply
  • Account Closed
    Real Estate Investor · Fort Lauderdale, FL · Member since 2016 · 49 posts · 6 votes
    9y

    Hi Bryant,

    Quick question:

    In this "sellers market", is it smart to try and stick to my numbers, so to speak when I am making offers? For example, if a house is listed at $249k, but based on calculations using the 70% rule and subtracting estimated repairs, my MAO ends up being $205k--- is that too low? Should I offer higher just to get the contract? If so, how hi should I go? Does it even make sense to do that? I wary of fudging numbers that might bite me in the butt in the end. Does it matter if it's an MLS property versus a property NOT on the MLS? Should I make full price offers, knowing I will get an inspection and then ask for credits based on what's in that report? (Won't I get a bad rep with agents for doing this after a few times?) Do I start using an 80% rule? I don't like making offers based on numbers that I know don't work. But if that is how the game must be played to make a deal, please let me know. Any helpful advice and suggestions are appreciated. Thanks.

    0Reply
  • Dave Caccia
    Contractor · Ellwood City, PA · Member since 2017 · 10 posts · 1 vote
    9y

    Hi All, Looking at a deal in my area and would be greatfull for any input, It is a 6 plex , for me this is a pretty big deal most of my experence has be with SFH, Looking at the numbers not sure if they work or may be just nervus because there bigger than what i'm use to working with. Please let me know what info I can provide .

    thanks in advance.

    0Reply
  • Esther Benson
    Savannah, GA · Member since 2017 · 2 posts · 1 vote
    9y

    @Kuba F. Thank you for the response and advice! I'm using the next few months to read/research and use this website and forum for advice before I begin anything to avoid heartache later. Thanks again

    1Reply
  • Hope A.
    Atlanta, GA · Member since 2017 · 19 posts · 4 votes
    9y

    Thanks @Account Closed for your willingness to help out the newbies. 

    I'm new to BP and am really excited about being part of the community.

    I'm new to REI and potentially see a great opportunity to rehab an apartment complex. I wanted to know on average, how much will it cost to rehab a 6 building dilapidated apartment complex? Additionally, how much time would it take to rehab the property on average?

    Any rough estimates would be great!

    Thanks - Hope

    0Reply
  • Jonathan Heltz
    Flipper · Baton Rouge, LA · Member since 2017 · 4 posts · 2 votes
    9y
    Originally posted by @Account Closed:
    Originally posted by @Brandon Johnson:

    @Jonathan Heltz

    I recommend getting your agent to set you up with email searches from the MLS that match your criteria. It could be for certain neighborhoods you want to be in, certain zip codes or they can even draw an area on a map for you. I would ask for a notification every time a listing either becomes a new listing, changes price, goes pending or completes a sale in your area.

    You may get bombarded with emails, but if you look at all the listings that ping your criteria then you will start to develop a good understanding of what the comps are in your area just by looking at so many deals.  When I ask for comps from my agent I am requesting the year of sales prior to the flood as well as all sales since the flood.  

    The "MLS client view" will allow you to see photos if they exist and you can know if you are looking at a flooded and gutted house or a rehabbed house, but the listing and sales price should tell you right away if it is gutted or restored. I also get the "CMA summary" view which is a spreadsheet format to easily run through all the listings and see things like square footage of living area, number of bedrooms, days on market, list and sales price and average and median prices per square foot.

    Keep at it and you will get the right deal. I also recommend you attend your local real estate club which is The RING / Baton Rouge REIA and connect with local wholesalers. Wholesalers are bringing tons of deals right now that can often be purchased for less than those on MLS.

    Take massive action and I'll see you at the top!

     This Is great advice !

    I really feel like I have found the agent and team I've been hoping for. Her broker is amazingly knowledgeable about everything to do with REI and I learned a ton of tips and strategies from him in a 1 hour meeting this week. Moving forward I feel like I have put ourselves in the best position possible to find our 1st of many great deals. I didn't even have to ask her for the CMA report on the few properties I wanted to take a closer look at - she gave me everything I needed and really understood what I was after as an investor. Thanks to everyone who made suggestions and those of you I've connected with offline locally for your much appreciated help! BP Rocks!

    0Reply
  • Sean Wait
    Wholesaler / Investor · Hastings, MN · Member since 2015 · 58 posts · 32 votes
    9y

    Hi @Alexander McNeely just wanted to give you a little feedback on your post.  As a Mortgage Lender just wanted to say to make sure to talk to your mortgage lender about your plan as just because you are prequalified to buy a home for 85k does not mean you would be able to buy 2 homes totaling that amount.  Also as you probably know an investment property may require a larger down payment and have a higher interest rate than the primary residence you will be living in.  There are many different types of Mortgage programs so you will also have to navigate thins and outs of those, which a good mortgage person will obviously be able to help with.

    Let me know if you have any questions or want to confirm or back up or question what your current mortgage person is telling you.

    Good luck!

    Sean

    0Reply
  • Morgan Clark
    Real Estate Investor · Odessa, FL · Member since 2017 · 4 posts · 1 vote
    9y
    For wholesaling & REI what's the next step after the little steps of gaining knowledge and education. Just don't know what my next move should be.
    0Reply
  • Aaron Jernigan
    Atlanta, GA · Member since 2017 · 31 posts · 3 votes
    9y

    'Hello! I am a 23 yr/old recent college grad. The past few months I have also caught the REI bug and have been learning, reading and listening to as much as I can. This summer I plan to buy& house hack or BRRR a multifamily condo or Duplex in Atlanta, GA. This will be my first property and plan to secure w/ owner occupancy FHA. A couple questions I would your appreciate insights on;

    -Would you recommend a condo or multiplex unit such as a duplex? I am willing to live in the property while rehabbing although I dont have great experience in rehabbing.

    -How can i determine whether to go after a higher end condo or a cheaper multi-unit?

    Any other advice would be greatly appreciated. Thanks!

    0Reply
  • Patrick Martone
    Engineer · Monmouth Beach, NJ · Member since 2016 · 132 posts · 25 votes
    9y

    @Aaron Jernigan The FHA requires you use an FHA Certified contractor to get the place to "liveable" conditions prior to inspection. You can still do cosmetics to force some appreciation after the contractor is done and everything is settled. I'm in the same boat as you now.

    1Reply
  • Nathan Sigars
    Investor · San Antonio, TX · Member since 2014 · 18 posts · 2 votes
    9y

    Bryant, first and foremost Thank you for giving assistance through the ever changing game of Real Estate.  I'm in the process of purchasing my 3rd buy and hold property, with closing "hopefully" taking place at the end of this week.  We have renovations to do once we assume the property, so my question to you is, what accounting measures/tracking should I use during this process?  I'm a user of QuickBooks, but really rusty on the software, however am self educating that tool.  ON my last property I just used Xcel, but didn't feel I tracked my purchases and out of pocket expenses very well.  Please help....

    0Reply
  • Jonathan Boyd
    Flipper/Rehabber · Springdale, AR · Member since 2016 · 79 posts · 41 votes
    9y

    @Account Closed, wow, thanks making yourself available! Very generous of you! As a learning beginner myself. to see someone so successful and yet real and helpful is both encouraging and exciting! I'll remember to shoot idea/questions your way when I'm near "the plunge". Thanks again.

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Originally posted by @Nathan Sigars:

    Bryant, first and foremost Thank you for giving assistance through the ever changing game of Real Estate.  I'm in the process of purchasing my 3rd buy and hold property, with closing "hopefully" taking place at the end of this week.  We have renovations to do once we assume the property, so my question to you is, what accounting measures/tracking should I use during this process?  I'm a user of QuickBooks, but really rusty on the software, however am self educating that tool.  ON my last property I just used Xcel, but didn't feel I tracked my purchases and out of pocket expenses very well.  Please help....

     Hey Nathan ,

    Quickbooks hasn't worked well for me because my accountant wants everything divided by property . I am struggling currently with the same issue as you . I just starting looking at accounting softwares specifically for properties like buildium but I am unsure what the best move is at this time .  Sorry ! 

    0Reply
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