Rental Property Investor · Chattanooga, TN · Member since 2020 · 2 posts · 0 votes
Hi everyone im Clayton Ensminger a 46 yr old newbie looking to get into buy and hold for long term wealth and passive income generating. Starting late in the game but better late than never.. I find myself getting overwhelmed with info but feel like buy and hold multi is the way I need to go. My wife is currently in RE school (fulfilling a long term desire) and we have some money to invest. Our goals are to generate passive income and march toward financial freedom. I would love any advice, connections or recommendations from anyone on getting first property, which i know will be the hardest. Thanks for any help!
Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
6y
@Clayton Ensminger One of my partners is 74 and loves talking to motivated sellers, lending private money, and managing rehabs. How much can your money compound in the next 30 years if you already have money and can start generating 20-50% IRR?
Once you do a few good deals and realize how amazing this game is, you'll be in it for life. Shoot, I'm not even going at a fast pace...just a few new rentals every year. Some of my clients are doing 5-6 BRRRR deals at a time! Multi is a very competitive space in Chattanooga right now, but deals are certainly still out there. How do I know? Because we fund over 10 HM deals every single month in Chattanooga.
Too many new investors wait for that perfect deal and never find it. Get a decent deal that doesn't need a full gut rehab, and jump in. You'll at least want to read a few books first though...
Here are some great reads when just getting started:
Investor · San Diego, CA · Member since 2019 · 326 posts · 266 votes
6y
Never late, never too old.
If multifamily is your focus, do not waste time. Start picking your target market and analyzing deals. Does not matter the size, it could be 2+ units all the way to 100+ units. This will only make you better and show you the inner workings. If you can meet certain criteria such as multifamily experience, net worth, liquidity, or capital raising- you can find and partner with a group of syndicators.
If you do not have any of that, I am a proponent of acting NOW. Find a good 2+ unit and start house hacking. Make sure the numbers make sense and the location is good. CASH FLOW is key. Make some remodels on the property to force some appreciation, but do not go overboard. Look at your market to see what remodels make sense. Find a lender and start the refinance process to get some tax-free money. Save some of that money for reserves and move on to the next property.
Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
6y
@Clayton Ensminger One of my partners is 74 and loves talking to motivated sellers, lending private money, and managing rehabs. How much can your money compound in the next 30 years if you already have money and can start generating 20-50% IRR?
Once you do a few good deals and realize how amazing this game is, you'll be in it for life. Shoot, I'm not even going at a fast pace...just a few new rentals every year. Some of my clients are doing 5-6 BRRRR deals at a time! Multi is a very competitive space in Chattanooga right now, but deals are certainly still out there. How do I know? Because we fund over 10 HM deals every single month in Chattanooga.
Too many new investors wait for that perfect deal and never find it. Get a decent deal that doesn't need a full gut rehab, and jump in. You'll at least want to read a few books first though...
Here are some great reads when just getting started:
Investor · Elmhurst, IL · Member since 2016 · 10 posts · 0 votes
6y
As a seasoned investor I can tell you few practical things:
1. When starting out, invest close to where you live so you literally can go to the property.
2. Learn the basics of how mechanicals, plumbing, roofing, WATER MANAGEMENT ((ie gutters, downspouts, pooling water) all work. You don't have to fix them per se, but it'll go a long way in not getting bamboozled by potential contractors when something eventually goes wrong. Or you'll realize that certain things are not too hard to fix yourself.
3. Start small. No need to rush into it. There will always be plenty of rental property available to purchase.
Best of luck,
Andrew - Investor and Insurer of Investment Properties (Nationwide)
Rental Property Investor · Chattanooga, TN · Member since 2020 · 2 posts · 0 votes
6y
Thanks so much guys! Yes reading those 2 books now Dan. The hardest part is trying to figure out what type of property to start with but I think a Duplex would be a great first start I just need to get with a Realtor that invests locally. I really appreciate all the comments.