Anyone else in Madison doing buy and hold?

10 Replies

Looking for other Madison investors to network with!  

Yep. We have 2 buildings we've been renting since 2001.

East side and North side.

I am! I have one duplex on the east side so far, and hope to buy another one in the next year. I'm always looking for people to network and chat with about real estate.

I have been buying in/around Madison for the last 5 years, and with a short break do to a large amount of work travel have been able to pick up 2-3 buildings a year.  I haven't sold anything yet, and go into each acquisition with a ~10 year plan so I count that as "Buy-and-Hold"  

I have thought of doing some flips, but I'm not particularly handy and once I find a quality property I have a hard time letting go of it.  I guess I'm a bit of a hoarder. :)

Would enjoy connecting.

@Paul Haviland I'm pretty new to part-time Real Estate Investing. I recently purchase my first buy and hold property a few months ago as an owner-occupied duplex with conventional financing up in the Fox Valley area. 

I have an interest in investing in the Madison area, since I usually spend my weekends there, so I'm curious what methods you are using to be able to purchase 2-3 properties a year?

My wife and I bought a 2-unit in November near East High, owner-occupied. We're hoping to buy more properties over the next several years.

@ Dave Wilson

My pace has been dictated by two limiting factors

1. Down Payments

2. Finding Good Deals

My goal is to acquire positive cash-flowing properties while utilizing as much leverage as possible (these two forces act in opposite directions - often, more leverage = less cashflow).  By increasing my leverage, I have been able to maintain reserve requirements and ultimately save for more down payments.

More specifically "how" do I increase leverage is a much longer discussion, and I have utilized several approaches.  (Commercial Financing, Seller 2nd's, full seller financing, bulk purchases and often several of these in combinations)

@Paul Haviland

Just curious as to what lender you have that still allows a seller 2nd?  Haven't been able to find one anywhere.  

Sorry - I accidentally "posted" before I was finished, and I didn't see where I could edit/update my post.  To finish my above post...

Finding the "deal" I don't do anything special here, but just look at a lot. I find some of my properties on the MLS (typically they have some type of a problem that needs solving), however more often now they are not on the MLS and I find them through networking.

@Darren Budahn

Good Question - What I typically do is have my offer contingent upon the Seller providing a  promissory note of $X (typically 10-15% of sales price) on another property I have.  Obviously the Seller would want to know that they will have safe position (enough equity to cover the 2nd).  The bank I have been working with doesn't mind.  They asked some questions the first time, but I have a half dozen loans with them, and are OK with it now. 

 By utilizing this method, you have to buy the first one and create enough equity, but then you could repeat again and again and cut your down payments in half.  Typing this out makes it seem very easy, but it can be a challenging discussion with the Sellers or their Realtor to make sure they feel comfortable and know their money is secure.  

Originally posted by @Paul Haviland :

Sorry - I accidentally "posted" before I was finished, and I didn't see where I could edit/update my post.  To finish my above post...

Finding the "deal" I don't do anything special here, but just look at a lot. I find some of my properties on the MLS (typically they have some type of a problem that needs solving), however more often now they are not on the MLS and I find them through networking.

@Darren Budahn

Good Question - What I typically do is have my offer contingent upon the Seller providing a  promissory note of $X (typically 10-15% of sales price) on another property I have.  Obviously the Seller would want to know that they will have safe position (enough equity to cover the 2nd).  The bank I have been working with doesn't mind.  They asked some questions the first time, but I have a half dozen loans with them, and are OK with it now. 

 By utilizing this method, you have to buy the first one and create enough equity, but then you could repeat again and again and cut your down payments in half.  Typing this out makes it seem very easy, but it can be a challenging discussion with the Sellers or their Realtor to make sure they feel comfortable and know their money is secure.  

 Hi Paul, I would love to know what lenders you are working with.  I have had mixed results with the lenders I've worked with.  Thanks!

Brian

I'm just starting out - currently looking for our first property but plan on doing strictly buy & hold unless a phenomenal opportunity comes up for something else. Still not sure if we can pull this off yet as we're on the tail end of the effects of a short sale on our primary residence long ago but jump right in right? :)

Hoping within a year or two I can be doing 3-5 per year

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