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. 

128Reply
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Most Popular Reply

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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  • Raymond Lucas
    Albany, NY · Member since 2016 · 1 post · 0 votes
    9y
    Hey Brian, I really appreciate what you're doing by making yourself available to the newbies such as myself. I'm actually living in the Albany area and I'm set on starting my real estate journey this year while doing it in the most efficient ways possible. Obviously everything isn't going to go perfectly every time and there is a learning curved involved, but I would love to connect with you and pick your brain about our market and various REI strategies. I'm currently interested in house hacking, buy and hold, and BRRRR (2-4 unit properties) so we may have some of the same goals in mind. So far I haven't done much but research the market and soak up information on the BiggerPockets forum/podcasts. However, I would like to start to familiarize myself with the next steps and avoid the paralysis by analysis rut. Thanks again and I look forward to chatting with you. Cheers, Ray
    0Reply
  • Jon B.
    Maspeth, NY · Member since 2016 · 75 posts · 62 votes
    9y
    Originally posted by @Account Closed:

    Jon Brandt I am going to private message you. Those areas all have different advantages but I consider them all investable areas ! I really like this area a lot ! I will PM you shortly .

     10-4.... I 'followed' you on here, maybe that'll help with sending PM's on here since neither of use are paid memberships... Never did PM's on here before.

    0Reply
  • Delmas Edwards
    Warren, MI · Member since 2015 · 140 posts · 36 votes
    9y
    Hey Bryant Schur! I just purchased a home FHA and in June it will be a year and I was thinking about renting it out to get started in buy and hold. I wanted to do a HELOC but I have little to no equity so I'm definitely trying to find funding for buy and hold investment properties. I don't know where to start or whom to go to. Can you give me advice? I definitely appreciate it.
    0Reply
  • Ryan Hilbun
    Investor · Scottsdale, AZ · Member since 2016 · 40 posts · 19 votes
    9y

    @Account Closed I also like to buy, rehab , and hold. I've done 3 deals over the past 7 years that make money and I'm at a point in my life that I'm going to concentrate heavily on investing. I can buy one or two more properties with 20% down but in the near future I want to acquire properties much faster than conventional loans would allow me to, which is why I'm interested in private money. I'm just not sure how much experience most private lenders are looking for before lending to a new investor. I would love to flip also, but I don't think my market is right for that right now and I don't the team and relationships established yet that would allow me to be successful. I definitely see flips as a viable opportunity in the future once I have a good team in place and the market is right.

    0Reply
  • Ramon Cuevas
    Liberty Hill, TX · Member since 2016 · 85 posts · 96 votes
    9y

    @Account Closed First of all, I would like to say thank you for putting yourself out there and trying to be a resource for some of us who are just getting started. I grew up in nyc and went to school in Albany, man I do not miss those winters up there..lol

    How do you self manage so many properties? I hear from all the guru's and on a lot of these forums, that you as an investor should concentrate on more high level activities, like finding more deals and outsource the property management part.

    My goal is to try and rent my primary home in the near future and find a 2-4 unit that I can house hack for a while to build enough capital to eventually get into larger apartment buildings. Instead of hiring a property manager, I want to initially handle the management side of things and buying home warranties on both properties to try and keep maintenance expenses as low as possible.

    Any advice/guidance will be appreciated.

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Ramon Cuevas well my goal just like everyone else is to focus on the bigger picture side of things. That being said we do not have a solid or reputable PM company in my area. That being said we could not comfortably hire out that part of the business . For us it started small with myself becoming a bit more handy , but as you grow you can afford to start to outsource . At this point we have grown a small team that answers phones and does all of the day to day maintenance and services . I am completely uninvolved at this point except for rent collection which I plan on switching to an automated system for that is well. The mistake I made was I wanted to be the landlord and give my number out and collect rent and kind of get my hands dirty when I started . The issues is as I have gotten bigger you realize it's not sustainable and is very stressful . I now just like to hire everything out and focus on the big picture .
    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Ramon Cuevas all in all my advice would be to self manage and learn the grind of being a PM but plan on hiring it out and run your numbers as if you are going to hire it out. I love that you want to move to a house hack as there is so many benefits to doing so ! If you find a great deal and a solid area with a solid tenant base you shouldn't receive to many calls or issues on a smaller unit . This is the best time to learn what it's like to be a landlord so that when you do hire it out you know what your expectations, rules, goals etc are .
    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Raymond Lucas there is so much potential in this are ! I have not invested in Albany particularly but there is so much around Albany that are really great prices. I am sure Albany has a ton of deals but I personally like the more rural areas. House hacking a FHA loan is an amazing way to start and that's how is started as well . Please feel free to connect with me on here and maybe we can meet up sometime or chat on the phone !
    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Jon Brandt So a few answers to your questions . I am a bit familiar with all of those areas as I am in that area currently. They all have a there pros and cons . I invest in the outskirts of the major areas because I can find some really good buy and hold properties at a fraction of what they would cost in saratoga , Albany etc. of coarse there is pros and cons to investing in a big city or outside of a big city . Saratoga is a very attractive place for home buyers so flips work well if you find a deal . Same thing with Clifton park . They have prestigious schools so all parents want those areas. Troy seems to be a better area for buy and hold but there is the ability to do all types of investing in this area in any market . Now on the FHA mortgage . The point isn't really the fees that some fees are financed and some are not . The deal is that you can get a 6% seller assist or also called seller concession . This 6% is financed into the mortgage and given as a credit at closing . the example I like to use is say you buy a house for 100k. Your downpayment at 3% would be 3k. Closing cost obviously vary but let's just estimate 7k for easy math. That would mean you would need 10k to close however You would actually get 6k in concession to help close the deal meaning you only need to bring 4 k to a 100k deal. It's pretty awesome stuff ! Hope that makes sense I was rushing on my lunch break to try to explain this lol!
    3Reply
  • Tera Carter
    Radiologic Technologist and Real Estate Investor · Severn, MD · Member since 2016 · 57 posts · 31 votes
    9y

    wow so much going on

    @Brian Towner

    I want to do actually what your are doing. I want to find a multi family house and live in it, but dont know how to go about getting it. I have access to a VA loan, or FHA loan. Can't wait to see @Account Closed

    My husband's job, is giving him the opportunity to get his real estate license.  I wanted to know also if it is worth it.  I'm new to wholesaling and trying to learn everyday.

    0Reply
  • Umesh Prajapati
    Chandler, AZ · Member since 2017 · 1 post · 0 votes
    9y

    @Bryant Schur: what are you looking to do ? Looking to invest in a property for Renting. if so SFR or Multi families? SFH. do you own a home ? yes

    0Reply
  • Benjamin Burket
    Realtor · Canandaigua (Rochester area), NY · Member since 2016 · 87 posts · 37 votes
    9y

    @Tera Carter That's great that your husband's job will allow him to get his license.  I am sure that will be valuable to your business.

    0Reply
  • Anthony Okin
    Rental Property Investor · Cumming, GA · Member since 2016 · 11 posts · 2 votes
    9y

    Hello Bryant my name is Anthony an Entrepreneur based in Atlanta. My Primary Business is based in Nigeria , which Provides me my Monthly Cashflows for Upkeep. I will have Savings of about $20,000.0 by February and i have been Provided some Flip opportunities in Atlanta which look interesting ; the Properties are based in Atlanta.

    Do you think it is too Early to Take a Leap in the Flipping Business in Atlanta, or should i start now and start building my experience? . My main goal it to make Profits on flips within the shortest Possible time for now, then start investing in rentals a year from now. What do you think?

    0Reply
  • Jerry Poon
    Real Estate Investor · Los Angeles, CA · Member since 2014 · 236 posts · 67 votes
    9y

    @Account Closed What is the way to go after having used up the debt to income ratio? How do I find additional financing after that?

    0Reply
  • Wendell De Guzman
    Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Account Closed:

    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. 

     It's awesome that you're doing this.

    So far, your answers are spot on and makes sense.

    I've been investing since 2003 and have bought over 160 apartment units in addition to being involved in hundreds of single family deals. Here's a link to my BP podcast: http://Biggerpockets.com/show65

    So I can (as well as the other experts here on BP) spot a fake expert here on BP based on the answers and so far, your answers look good. Continue doing what you're doing. Good job!

    7Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y

    @Brian Towner

    I am not a huge fan of the renting rooms out concept personally.  I would personally never want to move in that closely with strangers.  Also it depends a ton on your area.  Just looking at a 200K deal that property would have to pull in 2,000 a month in revenue after you move out to hit the 2% rule.  I would look more into a duplex that will cashflow when you move out and then rent the other half out and separate yourself from your renters with a nice wall lol.  also if you do this and have someone you know that you want to move in with you can rent a room in your half of the duplex and then also rent the other half of the duplex.  

    This is just my opinion for all I know your concept could wok  out amazing I just personally would never want to live so close to someone. 

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y

    @Wendell De Guzman 

    Thanks man ! I am still learning just like everyone but I think I can help some people out in the world of real estate ! 

     I just Re listened to your podcast the other day and it is a great one ! 

    Please feel free to jump in on this post and help with some advice the amount of posts and messages I have been receiving has been incredible!

    2Reply
  • Emilia Sambuceto
    San Mateo, CA · Member since 2016 · 2 posts · 1 vote
    9y
    Hi, I am looking into rental properties out of state. I currently live in the Bay Area and it doesn't make sense to start investing here for me. I'm looking into Phoenix and Dallas as my city's of choice. Do you have any advice on research when considering out of state investing? P.s. I am a novice at investing. Thank you, Emilia
    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y

    @Jerry Poon Oh the fun DTI conversation ! for most banks this is a quick thing they will pull and abandon the loan if its not sufficient. I luckily have not run into this but anticipate it will be an issue every time I get a bank loan. as a banker I do see this issue all of the time. Due to federal regulations large banks have a real hard time getting past DTI. My first advice would be to see if some local smaller banks have less strict rules on DTI . Also please join your local REI or become actively involved with local landlord so you can begin to network. This will open up opportunities to partner up on deals or to even find off market owner financing available deals. The ladder happened to me and I ended up with 2 owner financed 4 units ! the other thing you can do is actually work on your DTI ratio so you are more attractive to banks. I will put a link at the bottom on a post from BP on what DTI is and how its calculated. Paying off a credit card or car loan can sometimes make a huge difference.

    Also you said what do you do after you used your DTI up. In my experience as I purchase rentals my income goes up and I actually help my DTI once I can prove the income with lease's and tax returns . I am getting traditntal financing right now on a home for myself and my multiple rental obligations where not even a concern because I am honest and claim all of my income and my properties cash flow!

    its a delicate game but as a banker my view is that if someone doesn't qualify with DTI it could be very risky for them to get into another investment until they can stabilize .

    lastly some private lenders and unsecured signature loans have less qualifications than a mortgage so check out the link below that explains these loans !

    https://www.biggerpockets.com/mortgage/home/debt-t...

    A good link on peer to peer lending options 

    https://www.biggerpockets.com/renewsblog/2013/08/0...

    2Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y

    @Anthony Okin I wish I could speak more on flipping but  I have yet to flip and sell a property :( .  I would recommend listing to Jay Scotts podcasts for sure though as  I do listen to every podcast including flipping podcasts and he seems like a great wealth of knowledge for flips  !

    0Reply
  • Anthony Okin
    Rental Property Investor · Cumming, GA · Member since 2016 · 11 posts · 2 votes
    9y

    Ok. Thanks for the Response

    1Reply
  • Jerry Poon
    Real Estate Investor · Los Angeles, CA · Member since 2014 · 236 posts · 67 votes
    9y

    @Account Closed Thanks so much for the response! Another issue I've run into is an individual loan limit. I will make these numbers up for convenience's sake. Bank A has an individual loan limit of $250k. Once you have borrowed that much from them, they refuse to make further loans to you even after you have proved to be very comfortably under the DTI ratio. How would you convince them to raise the individual limit on you? Or would you just go to another bank?

    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Jerry Poon so you can find mortgage brokers that work for many different banks and have access to so many different banks . I would find one of these loan officers and see what banks have better limits . Personally I don't care where the loan comes from I just want terms that work and company that is excited to give me money . If you have to try to break rules or bend rules to get money out of a bank it may time to move on from that bank.
    0Reply
  • Jerry Poon
    Real Estate Investor · Los Angeles, CA · Member since 2014 · 236 posts · 67 votes
    9y

    @Account Closed I am not in the finance world so I have a hard time learning to trust new bankers. Especially now in the internet age where you can fake so much information. I don't have the "eye" to scope out a legitimate lender or not. One bank I am working with has a very average website, but they are very legit and are great to work with. What questions/credentials do you ask from loan officers and banks to make sure they are legitimate businesses?

    2Reply
  • Timothy Metra
    Augusta, GA · Member since 2017 · 65 posts · 5 votes
    9y

    You're a bank manager for a large bank, your wife is a real estate agent, your friend has 100+ rentals with you, your father is an attorney, and your mother is a real estate agent...

    Wow.

    You know how some families have the military thing going? Mom, dad, brother, uncle were all in the military. Guess what Tommy is gonna probably do?

    You're like that, but with real estate. Hahaha, that's awesome. You're literally surrounded by everything pointing towards you should being an investor. I just thought that was funny (not in a bad way), glad you're using your knowledge to help beginners. You're doing a great thing, man. Just had to drop my praise for it!

    2Reply
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