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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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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  • Stan Taylor
    Murfreesboro, TN · Member since 2017 · 17 posts · 2 votes
    9y
    Hell sir I'm Stanford Taylor, I have just started research on wholesale real estate and want to get some insite on the process as a whole. I'm in process of increasing buyer list and trying to increase my knowledge on rehab estimates.
    0Reply
  • Nolan Gray
    Investor · Milwaukee, WI · Member since 2014 · 69 posts · 13 votes
    9y
    Bryant Schur Whats your take on holding structures such as LLC's Do you have suggestions? And have you ever had to risk triggering the due on sale cause by putting a personally financed property into an llc ?
    2Reply
  • Alex Figueroa
    Real Estate Agent · Hartford, CT · Member since 2016 · 13 posts · 12 votes
    9y
    Bryant Schur thanks for being willing to help us out! My biggest concern at the moment is how to analyze a property to see if it truly is a good deal. Just because the price is low doesn't mean it will make you money. I currently live a duplex that we just bought in October from my mother; 20% down, gift of equity. After listening to some BP podcasts I am looking to do a HELOC and use that money for another down payment on a buy & hold or BRRRR, although I don't have that much to use on a rehab (around 20k-40k). I feel like we got "lucky" with the duplex - in the sense of the equity but it's not cash flowing for obvious reasons. So back to my original concern. How do I analyze a deal? So that the next deal will really push us forward.
    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Nolan Gray hey ! I use an llc and I buy my new properties in the llcs . I would recommend using llcs when possibly but I stay away from transferring into an llc on my properties owned in my name. The ones I got early on in my name are staying that way because I do not want to trigger a due on sale . It's a nightmare of mine !
    1Reply
  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y

    Hey @Account Closed

    Wanted to give you a big thumbs up for putting yourself out there and helping people out.

    Keep up the good work!

    Kuba

    1Reply
  • Nick G.
    Investor · Plainfield, NJ · Member since 2016 · 21 posts · 4 votes
    9y

    Hi @Account Closed thanks for doing this.

    I have a couple of things I'd like to ask: Over the past 5 years I have bought three (two 2-unit and 1 single-family) rental properties in NJ which I own free and clear. The properties are all in my name. In addition I have my primary residence which has a mortgage. The cash flow from the rental properties is about $3000 per month. and this is essentially my only source of income.

    I'm looking to buy an additional rental investment property and am looking in to getting cash out for the equity in the three investment properties. I'm working with a broker and my debt-to-income ratio (based on my tax returns) won't qualify me for a traditional bank loan. This is in part due to one property being rehabbed for most of 2016, so not much income along with deductions. He said he'd look at commercial loans. What advice would you have regarding financing future purchases?

    Also I was thinking about forming a LLC to hold the investment properties. What implications would having the properties held in a LLC have as far as financing go? Do some commercial lenders require that properties are held by a business entity?

    Thanks,

    Nick

    2Reply
  • Manny Pena
    Springfield, MA · Member since 2016 · 2 posts · 1 vote
    9y

    hey I wanted to now if I'm better off house hacking OO to pay less down or just go straight NOO with 25% down plus closing, or hard money loan like BridgeWell. I'm a first time investor looking to make my first deal. Thanks

    1Reply
  • Nolan Gray
    Investor · Milwaukee, WI · Member since 2014 · 69 posts · 13 votes
    9y
    Understood ! Bryant Schur stay connected my bp friend
    1Reply
  • Chris LittlePro Member
    Alvin, TX · Member since 2017 · 20 posts · 8 votes
    9y
    I am brand new beginning this journey. Any help or mentorship is greatly appreciated.
    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Manny Pena I am a huge owner occupied house hack, low downpayment guy . Honestly when I started I was a bit nervous and the best way for me to get over that nervousness was to benefit from free living or cheap living . The reason I love owner occupied house hacking on your first deal is because you end up finding out if you want to continue to grow this business . Investing is NOT for everyone and it's not all unicorns, butterfly's and rainbows . It can be sad and mean and tiring and amazing and incredible and every other adjective ! I feel like if you move into your first rental you get the best idea if you want more and if you have the right attitude and strengths to continue ! And worst case scenario you have a place to live for free .
    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Nick G. Commercial lending typically just means lending on non traditional terms . Basically you may not qualify for traditional lending anymore but some commercial lenders maybe able to help. Since you do have equity I would look for a portfolio or commercial lender that is willing to do a blanket loan over your properties in order to pull equity . These lender can get more creative and do more with the loan to qualify it as opposed to traditional lending . Speak to some local smaller banks commercial lending reps and talk about blanket loans ! That's a great place to Start .
    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Kuba F. Thanks ! I can't believe the response I have received ! It's great to see so many people that are motivated to start their journey !
    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Alex Figueroa You are right ! A cheap property Doesn't mean a good deal ! What is the market rent in your area for a duplex ? What are vacancy rates in your area . If you can rent a 30k property out for 1100 or more a month that's a great deal most likely but if you can not keep it occupied or can not get good rent it's probably a bad deal. If you want to message me or post details here with your areas metrics, I can give you a better idea.
    0Reply
  • Elliott Kim
    Rolling Meadows, IL · Member since 2016 · 15 posts · 3 votes
    9y

    @Account Closed My girlfriend and I just got an FHA pre-approval for a 3 unit multi-family. We're excited to have taken this step in the process as we've been patiently waiting to get a favorable credit profile in order to get approved. Now we're in the process of finding the best deal possible in the saturated market of downtown Chicago. I see that you're based in another saturated market of New York. Have you invested in any multi-family properties in that area and if so, can you share details about your experience? We are looking at two different scenarios: 1) invest in a higher-market proven hot-spot in the area that will be easier to find tenants and 2) invest in a potential up-and-coming neighborhood that is near one of the hot-spots. However, this area is going through gentrification and we are unsure about the volatility of occupancy as well as the types of tenants we might be renting to. Based on your experience, what do you think is a better choice for first time investors?

    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Elliott Kim amazing post and question! Congrats on getting this far . Personally I love and have only invested in the. It so hot up and coming areas . Cash flow is a bit more but it comes with more questions . My buddy and I started with the idea we could help the up and coming area with better housing , better services , and a better attitude than the other investors in the area . A few years later I am happy to report we play a big part in the community , we are great friends with the mayor and city officials , we have taken poor buildings and turned the reputation of them around. That being said if you can find a great deal that cashflows in a proven area it also a great investment .
    0Reply
  • Carrie Cha
    Real Estate Agent · Shakopee, MN · Member since 2017 · 1 post · 2 votes
    9y

    Thanks @Account Closed for offering your advice!!! I don't know if this may be been discussed before, but I'm currently renting right now and have been here for 3 yrs. We live in a side by side duplex, each side is owned by a different owner. Our landlord is looking to sell our rental and has offered it to us if we want to buy. I don't want to lose out of this deal, so my husband and I are working on getting a FHA Loan etc to purchase it. Only thing is, as a startup investor, my heart was set on purchasing a whole duplex, where we'd live on one side and rent out the other. However now we'd only have one side. The rental income in our area is definitely lucrative, so I don't want to lose out on the deal either. What would you suggest? Pass on the deal and look for a duplex/multifamily? Or purchase anyway and then rent out later?

    2Reply
  • Jack Decoto
    Investor · Stanwood, WA · Member since 2016 · 3 posts · 2 votes
    9y

    Hi

    My wife and I are working with my adult daughter on investing in Washington State, just north of Seattle. All of us are new to BiggerPockets and investing. We are PRO members and have watched many webinars. I am still working a full time job. 

    I have been to a local small (3 branches) bank to speak with the MLO once, he was out. I will try again.

    We have several properties that will be sold at auction next month.  The typical bank loan will require 20% or more down.  Where do I find a Private Investor that may be interested in a property that may be interested?  

    I can try to submit an offer to the current owner prior to the auction or buy at auction for something under the calculated $$. I will be using BP's calculator of course.

    Thank You

    1Reply
  • Scott Schreiber
    Attorney at Law · New York City, NY · Member since 2015 · 40 posts · 26 votes
    9y

    Thank you @Account Closed for your excellent advice! I learned a lot just from reading through this thread. Like many on here, I'm in NYC, and can't get started in the city. I'm a member of the NY Bar, and got my Broker's license. In a few weeks, I'll be starting a position at a residential and commercial real estate law firm, and am hoping to learn a lot about the process that way.  

    I have a few questions. I'd like to stay within 2-3 hours of the city, and have been looking at places like Poughkeepsie, Peekskill, and Hudson. Do you have any experience with these places? Any advice on whether those markets are good for BRRRR, fix and flip, or something else? My ultimate goal is to build up monthly income of at least $10,000/mo in the next 10 years.

    Secondly, what tools do you use to analyze what you think you can rent out a place for? I've used Zilpy and Rentometer, but it's hard to know how accurate they are. 

    Again, thank you for your time and advice! This thread is awesome.

    4Reply
  • Francys Crevier
    Arlington, VA · Member since 2013 · 13 posts · 2 votes
    9y

    Hey @Account Closed! I am trying to buy a townhouse to buy and hold (and possibly rent out/ airbnb the basement). I haven't really wanted a realtor, and I have seen weird things in Suitland, MD to take advantage of consumers or not help at all.

    That being said, I found a place that I would like to buy. I Maryland also has buyer assistance programs, and I'm trying to figure out how to navigate that? I need to get pre-approved, and I want someone to run numbers before pulling credit. a big bank just told me they won't deal with the assistance program. Who should I target? How do I put an offer/contract in? What clauses should it have? What other due diligence must I do? What are the next steps? Hellllllp!

    Thank you! I may have asked for too much lol

    2Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Carrie Cha for me this situation would be based on cash flow once you move out . If he is offering it cheap enough that you could make a solid profit once you move out it may be worth it . That being said If it wouldn't cost much more to get a multi Unit property I would certainly go that route . A single family home that you live in will always be a liability in my mind because it is not pulling in any cash flow . Furthermore I look at what I can purchase a place for per unit . I like to try to get deals around 20K per unit in my market(this is just my market this is not realistic in many markets). I am currently focused on getting buildings with 4 or more units . That being I was not actually searching for 2 units but one came up that I saw that I was able to get for 32K that was super easy to fix up and only cost me 2-3 k to finish remodeling . So I went against my plan of 4 or more units and purchased it . The moral of the story is if you can get the single unit for dirt cheap it may be a nice asset down the road, however while you live in it it will always be a liability . Also you may be able to get a duplex for just a tiny bit more that brings in money while you live for free or cheap !
    0Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    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 .
    3Reply
  • Justin Charpentier
    Poughkeepsie, NY · Member since 2017 · 32 posts · 4 votes
    9y

    @Account Closed What a great thread you've started. Thanks for your help.

    I'm in the mid Hudson valley but I travel weekly to the lake george area. I have been contracting for the past 6 years all over southern New York CT and NJ, and my family has also done so for the past 30 years. In terms of investing, we built a spec home at the peak of the RE bubble and ended up not being able to move the inventory after it burst, until fairly recently. We were however, able to rent it out and we didn't take much of a loss on the process. It was a great learning experience. That being said, I'm planning to form a new LLC this year and begin flipping. The numbers are obviously different than a hack, but a lot of the principals are the same. I would love to talk to you more about the markets that you're in and even more diversification in my investment choices. My ultimate goal is a lot like yours, i want to be able to make a difference in the communities that I invest in. I should also note that I have developed some good relationships with several private lenders and I may have unique access to funding on multiple scales. What I am lacking is insight into the local markets. How do I find what type of homes are selling? How do I find the right realtor who is on the pulse of market values after rehab? I'd also love to hear more about clifton park and Saratoga from your perspective. .

    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Francys Crevier when you talk about assistance programs are you talking about seller assist / seller concessions ? Also I would highly highly recommend using an agent. The legal homework and documents you would need figure out would not be worth it. Remember the agents commission technically comes out of the sellers price not your pocket .
    0Reply
  • Scott Schreiber
    Attorney at Law · New York City, NY · Member since 2015 · 40 posts · 26 votes
    9y

    @Account Closed Wow!!!! That is such awesome advice! I never would've thought of that, and am definitely going to try it out.

    1Reply
  • Account Closed
    OP
    Upstate, NY · Member since 2016 · 200 posts · 277 votes
    9y
    Jerry Poon This may sound crazy but I can tell a good MLO as soon as I talk to them . Usually I look for hustle and how confident they are in my loan . That being said I would scrub local banks by positive reviews and BBB score and then call the top 5-10 banks , ask for an MLO and then ask what type of loans they are currently looking for as a company . Hopefully you can find 2-3 that are currently motivated to work with investors . These banks are out there you just need to find them . I have 2 MLOS I recently found that both have closed deals for me in the last 4 months that did not even flinch when I told them what I'm doing and the amount of leverage I have . Another MLO I called while searching for these MLOs said the bank they are in will not allow me to use rental income as income so I should probably find another bank . I am not even sure she legally can do that but either way you can usually tell who is willing to go to bat for you and help you push a loan through and they know what the underwriters will and won't like to see !
    1Reply
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