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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  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Tom Chen I have done one Homestyle loan (Similar to 203k). It was very paper intensive. The qualifications were similar to any FHA loan. Once the loan was closed the money draws to contractors were very smooth.

    1Reply
  • Matthew Sadowski
    Austin, TX · Member since 2017 · 2 posts · 5 votes
    9y

    @Account Closed, I'm looking at getting into my first deal for a quadriplex @ 220k. After analyzing the deal it looks like my project is going to cost about 55k including the 20% down payment, closing costs, and renovation budget. Given this, what are the top ways that I can recoup the money paid into the project so I can continue rolling onto other projects?

    The ones that come to mind are

    1.) FHA loan for low doawn payment and house hacking

    2.) Refinancing - I don't think the value will be increased that much in 1 year though

    3.) Seller financing?

    Thanks for your time.

    1Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Isaac Huerta I think you may have a hard time finding a money lender for a home you are going to occupy. You are turning their investment into your primary residence and here in Florida that would be a court nightmare for your investor if things feel apart.

    0Reply
  • Kaley Jones
    Sulphur Springs, TX · Member since 2017 · 1 post · 1 vote
    9y

    @Account Closed Thanks for the willingness to help... I am SO very new to REI! This is my first post/reply. What do you mean by "House Hacker?" Also... I live in rural east Texas, where there is a steady real estate market. We have about 100K in cash currently and can't decide what we should do. Do we try to flip 2 or 3 houses, or try to buy a rental property? My husband is a contractor, and we would self-manage any properties we acquire for renting. Do you have any advice as to where to start to get into this business??

    1Reply
  • Colby Stoker
    Ogden, UT · Member since 2016 · 6 posts · 1 vote
    9y

    @Account Closed

    Hey Bryant,

    Thanks for being willing to help. I am new to this all and am trying to educate myself as much as possible, but I feel I have read/heard different things on analyzing deals. When you come across a property you are looking to buy (Single family home, duplex, triplex) to rent it out what numbers do you use to see if it is a good deal?

    1Reply
  • Tom Chen
    Real Estate Investor · Flushing, NY · Member since 2016 · 210 posts · 77 votes
    9y

    @Clayton Plank,

    Thank you for your reply. 

    So with that said, I'll need to look for property as if I'm flipping...

    If I'm looking in the Syracuse market, which is 4 hours away, would you as a beginner, work with an agent who is also an investor?  Or would you try to drum up you right own leads and/or contact people straight from sites like realtor.com or zillow, etc.?

    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Tom Chen are you looking for this as your primary or to flip? I would work with whoever has a good deal. Everyone you talk to should know you are investing in the real estate world and what you are looking for. You never know where a deal may come from. I bought my first house from my neighbor over "fence talk". 

    1Reply
  • Isaac Huerta
    Real Estate Investor · Austin, TX · Member since 2016 · 21 posts · 10 votes
    9y

    @Clayton Plank Thank you for your input, Clayton. However, in my opinion, I think that can easily be avoided if both my money partner and myself come to clear terms regarding the stake of each party in this deal, possibly signing a contract if necessary.

    What do you think about that? 

    0Reply
  • Tom Chen
    Real Estate Investor · Flushing, NY · Member since 2016 · 210 posts · 77 votes
    9y

    @Clayton Plank,

    Again, thank you. I'm looking to do the BRRR for buy and hold. But to make it work, I'm thinking I need to find undervalued property hat needs some work.

    0Reply
  • Emily McCabe
    Investor · New Windsor, MD · Member since 2016 · 28 posts · 23 votes
    9y
    Hi, I'm new here, thanks for offering to answer questions! I really want to collect buy-and-hold multi-unit properties, but I'm having trouble getting started. I need a 25% down payment to buy my first one, but I think it'll take me quite a while to save up that much cash. The properties I like in my area are going for 150-250k. Should I just wait it out and try to save? Would it be a mistake to try to come up with the money more creatively? I think I have a bit of equity in my home, also have some retirement savings I could borrow from, or could even go the route of credit cards, etc. I think I'm just afraid of borrowing too much and getting myself into trouble. I could also try to go in with a partner, but I'm afraid that could get messy, and it would limit my potential cash flow. Any advice?
    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Isaac Huerta I agree with coming to terms up front. I know that my private and hard money lenders will not loan on owner occupied. So are you going to pay rent to your money partner? Are you going to manage the property for them for a fee or for your rent? The typical managing fee around me is 8-10%. That means at $1000 a unit you would have to manage 10 other units for you to break even on the money your money partner is not getting for the unit you are living in. I'm just not seeing how it is benefiting your money partner. I'm not saying that it can't be done as everyday I learn something new in real estate or a different way to do things. 

    0Reply
  • Ryan LubyPro Member
    Rental Property Investor · CT · Member since 2016 · 258 posts · 227 votes
    9y

    Thank you both for the response!

    @Clayton Plank All great questions lol. I have a general price, the towns public records have it appraised around $247,000 however this number seems off and out of date. Most other estimated prices I find for the property have it somewhere around $190,000. This is definitely closer to the real value I think the property is worth. I have done a decent amount of research thus far but I still want to talk to the current tenants (at least I think that's a good idea) and I wanted to talk to the owners. There has been a for rent sign outside the property for a long time and that recently was changed to have both a for rent and for sale sign but it is not listed for sale on the MLS sites that I have access to. I will absolutely get in touch with the owners and try and get a better idea about where they are at. Thanks for the help!

    @Account Closed I agree about reserves and will try not to rush this. I will mainly work on saving some cash while I find out more about this property, and hopefully find a partner who is willing to work with me. I have been eyeing the REIA meet-ups in my area but they have all been around an hour drive from me and at times when I work but I kick myself every time I pass up the opportunity to attend and I will absolutely commit to attending as many as possible throughout this year, including the next one that comes up.

    Thank you both again for the advice it is greatly appreciated, and best of luck in your work!

    Best,

    Ryan

    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Tom Chen that sounds like a great strategy. Just make sure you know any of the restrictions that may come with it. When I did mine there was a three year time that I could not refinance or I had to pay a penalty. Good luck to you sir.

    0Reply
  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Kaley Jones:

    @Account Closed Thanks for the willingness to help... I am SO very new to REI! This is my first post/reply. What do you mean by "House Hacker?" Also... I live in rural east Texas, where there is a steady real estate market. We have about 100K in cash currently and can't decide what we should do. Do we try to flip 2 or 3 houses, or try to buy a rental property? My husband is a contractor, and we would self-manage any properties we acquire for renting. Do you have any advice as to where to start to get into this business??

    Kaley, I would look for flips since your husband is a contractor. It could be an easy (er) way in your case to build up equity. If it's a keeper then rent it out. If not sell it and repeat.  

    1Reply
  • Tyler Stokes
    Garden Grove, CA · Member since 2017 · 3 posts · 0 votes
    9y
    Are you going to do any meet ups? I'd love to sit down and hear what you have to say! -Tyler For USI
    0Reply
  • Isaac Huerta
    Real Estate Investor · Austin, TX · Member since 2016 · 21 posts · 10 votes
    9y

    @Clayton Plank Here is how I see this working out:

    The property is a duplex of two units of 3 bedrooms and 2 bathrooms. One side is being leased out to a family for $1,200/mo while the other side is vacant. I move in into the vacant side and I rent out two of the three rooms to friends from a nearby college. Each pays a $600 rent fee every month.

    How did I benefit?

    My benefit is that I'm living there for free.

    How did my money partner benefit?

    My money partner benefits by collecting the rent each month. 

    What do you think about this scenario? 

    0Reply
  • Mikki McIntyre
    Investor · Sewell, NJ · Member since 2016 · 17 posts · 3 votes
    9y

    Hello! First, congrats on your success, and thanks for your willingness to help newcomers.

    My husband and I currently own 2 rental properties and want to add more to our portfolio. I am working towards turning real estate investing into my full time job. However, I'm having trouble understanding how to fund these transactions. We both are self-employed ( i own one of the largest apartment leasing companies in Philadelphia so DUH, i should own a ton of properties). We have some private money lenders we are looking into because its difficult to get more mortgages because of debt to income I guess, although we haven't looked into traditional lenders for a 4th mortgage. We both have EXCELLENT credit and both rentals are positive cash flow. My concern though is when its time to refi these rentals into standard 30 year loans, won't we still have the same debt to income issues? will we be able to get refi's for these? I don't know anything about commercial mortgages but is that what we should look into for these? We also flip houses but that is a seperate business with another partner. Any advice would be helpful. 

    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Isaac Huerta what is the cost of this duplex and are you going to title in as you both have ownership of it?

    0Reply
  • Binyomin K.
    Brooklyn, NY · Member since 2017 · 21 posts · 1 vote
    9y
    Bryant Schur I'm looking to purchase off market multi family properties in south Florida. I have been having a hard time finding these types of deals
    0Reply
  • Pierre Toussaint
    Atlanta, GA · Member since 2016 · 20 posts · 4 votes
    9y

    Hi Bryant,

    Thanks for volunteering your time. I am new to investing and BP as well and have been learning a lot. I decided to start my drafting my business plan.  It's not robust, but hopefully can keep me on track.  Do you mind taking a peak at it and letting me know your thoughts?  What's realistic or not realistic?  What can be more clearly defined? Recommendations? 

    You can put comments in the document or right back in this forum.  

    Thanks a ton!!! 

    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Binyomin K. Network! Let everyone you talk to know what you are looking for.

    0Reply
  • Kevin HaPro Member
    Brooklyn, NY · Member since 2016 · 22 posts · 5 votes
    9y

    Hi Bryant, 

    Thank you for opening your heart and brain to us. I'm a completely new to R.E. investing. What would your suggestions be for me as I am single, in NYC and do not have a lot saved up. I've been working as a brand Ambassador (self-employed and on commission ) and ran a small Dj business so do not have a steady income, as far as the banks are concerned. I'm currently trying to work with NACA, and am reading books and listing to podcasts about R.E. investing here on bigger pockets. I am looking to getting into rentals outside of state due to housing prices, but don't know if i'm on the right track of where and what to look for. Hope i gave enough so you know how to lead me into the right direction? Thank you

    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Pierre Toussaint looks like a good start. The number one thing I see that stops new investors if the failure to act. Take you plan and put it into action. Good Luck Sir.

    0Reply
  • Justin Charpentier
    Poughkeepsie, NY · Member since 2017 · 32 posts · 4 votes
    9y

    @Clayton Plank thanks for adding your experience and guidance to this thread. Do you specialize in flips? I'm hoping to begin flipping as soon as possible. I looked at some properties today, but I didn't see anything that fits as of yet. Do you have any advice about finding the right market to flip in? Any advice in general about flips? I'm looking at using private money to finance the project(s) with exit strategies being 1. Sell and 2. Refi. I'm looking to close and be back on the market within 2 months. 

    0Reply
  • Clayton PlankPro Member
    Investor · Jacksonville, FL · Member since 2012 · 122 posts · 46 votes
    9y

    @Justin Charpentier I do not specialize in flips. I do like to find buy and hold properties that need extensive work for large discounts and rehab them with a buy and hold mindset. This allows me to get into a property at lower cost and allows me to rehab it in ways that benefit me for holding it long term as a rental.

    You make your money on the purchase. Plan for the worst in every deal. You are ahead of the game if your already have private money lined up.

    0Reply
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