Thank You BP!

Real Estate Deal Analysis & Advice
10yFollow

Thank You BP!

Marshall Downs
Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes

I have been a member on Bigger Pockets for 3 years now and got significantly more serious about my investing about 2 years ago. Full disclosure, I had a fair amount of experience prior to getting on the forums, but what really pushed my business over the edge was this community which for me was a sounding board, mentor, mentee and fantastically unorthodox education. So, over the last 2 years here is what played out – all due to BP:

Year 1

Wholesaled a property which I had never done (I know – mixed reviews on this approach)

Flipped 3 homes with private lenders found on BP

Purchased 12 rental units with a BP partner

Year 2

Flipped 3 homes – 2 with a lender from BP

Spearheaded the purchase and rehab of a 22 unit condo conversion project of a former school with BP members and others

QUIT MY JOB!!!

So here I am in year 3 of this journey and we are about 6 months from finishing the condo conversion. We are actively purchasing more rental units, looking for another mid-sized project to renovate and building better systems for the future. I am extremely grateful for the creation of this awesome website.

Newbies, do not spend thousands on education you can get here for free! Spend the time to learn, connect with good people, ask questions and get on the forums. If you want to get the information to move ahead it is out there.

Anyways, thanks BP community and Josh Dorkin and Brandon Turner for a killer site!

21Reply
36 views

Most Popular Reply

Julie MarquezPro Member
Investor · Skagit County, WA · Member since 2016 · 1k+ posts · 807 votes
10y

@Marshall Downs I think that's a great background for real estate investors! I work construction project management for a large general contractor, and all the tasks and skill I'm learning now directly relate to real estate. I always suggest to those young kids on BP looking for a college degree or internship jobs to check out construction management. And you're a testament that it's a great background!

1Reply
See this reply in the discussion

50 Replies

Jump to latestLatest
  • Aaron HowellBusiness Member
    Real Estate Agent · Crozet, VA · Member since 2014 · 436 posts · 223 votes
    10y

    Cha Ching $$$ !  Awesome post !  

    Story House Real Estate529 Reviews
    WebsiteView Page
    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    Thanks @Aaron Howell. I've been meaning to share this for a while, but sadly, I don't get on here as much as I did when I had a job! Lots of late nights cruising the forums!

    0Reply
  • Tony Robinson
    IL · Member since 2016 · 17 posts · 5 votes
    10y

    @Marshall Downs thanks for sharing this success story! I am new to the site and REI. It is post like this that inspire me to continue my pursuit to get into the market place and start realizing my REI goals. Thanks again for sharing and continued success!! Tony

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    Thank you @Tony Robinson! You will enjoy it here! Feel free to reach out with anything I can do to help.

    1Reply
  • Tony Robinson
    IL · Member since 2016 · 17 posts · 5 votes
    10y

    You bet @Marshall Downs and thanks!

    0Reply
  • James MasottiPro Member
    Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
    10y

    Awesome stuff @Marshall Downs! What's next for you now that you're transitioning out of the corporate world?

    Podcast Guest on Show #312
    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    We are always looking at prospective projects and have offers in on a small multi-unit as well as a commercial property. The multi-unit will go into the rental portfolio which I want to grow to 100 units in the next 4 years. 

    The commercial property would be a great addition of another 4 units, but will also provide a retail opportunity for us to open a small building material retailer. In the process of getting vendors lined for the condo project we found a great connection for a particular building material at 1/3 of the price I could find for anywhere near us with great quality. So, we plan to open up a storefront and sell direct as well as offer wholesale pricing for builders.

    Lastly, we have been looking at several buildings to do another condo conversion. Haven't settled on one yet, but there are some prospects. Possibly another school building and maybe even layering some state or federal incentives which is a whole other interesting, but fickle territory.

    0Reply
  • Brett Snodgrass
    Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
    10y

    Congrats @Marshall Downs. Keep it up!

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    Thanks @Brett Snodgrass. The hustle is real!

    0Reply
  • Jason Lewis
    Investor · Cincinnati, OH · Member since 2015 · 7 posts · 1 vote
    10y

    Congratulations @Marshall Downs always a great thing being able to do REI full time. I about 6 months away.

    I have a question about your lenders. Do you use commercial loans with an LLC and if so who do you use?

    Great job again.

    0Reply
  • Ashley Pimsner
    Rental Property Investor · Saint Charles, IL · Member since 2014 · 304 posts · 222 votes
    10y

    Much respect @Marshall Downs!

    Posts like yours are invigorating and make me work harder.

    0Reply
  • Chris Bell
    Engineer · Dallas, TX · Member since 2015 · 16 posts · 0 votes
    10y

    Awesome stuff!  Can't wait to hear about the next three years!

    0Reply
  • Darren McGillvrey
    Real Estate Agent · Veneta, OR · Member since 2016 · 48 posts · 12 votes
    10y

    Thanks @Marshall Downs for sharing. I'm currently looking at a hard money lender who will do 100% financing for flips. I've done 5-6 flips with my father-in-law and everything was in his name but I really want to get one in my own name. Any comments/recommendations as to whether or not I should go hard money or try to find a private money lender as you did?

    0Reply
  • Victoria Creighton
    Investor · North Easton, MA · Member since 2016 · 29 posts · 4 votes
    10y

    @Marshall Downs  Great work!!! Would love to see some of you before and after pics. Do share if you can. But you're right this site is AWESOME!!!

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    @Jason Lewis Thank you! I have done commercial portfolio loans with an LLC with local banks. In my opinion that is the best way to go especially early on because they will do deals that larger banks will not by underwriting based on character as well as the other criteria. Additionally, you may be discussing the deal with a decision maker. Much different than being a faceless applicant. Good luck!

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    Thanks @Ashley Pimsner! Go get it!

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    @Chris Bell Just heard yesterday we got a very aggressive offer accepted on a commercial building so things are off to a good start! 

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    @Darren McGillvrey Your question really depends on the terms of the lender. In my search for a good HML I found lot's of excessive points and rate charges. That may not matter to you depending on your market and sales prices. Many of my private lender deals were structured at 100% financing at a certain rate then an additional share of the profits. Worked out really well for both parties because I made money without having to put up much if any and they got great returns while also having a secured interest in the property.

    Maybe your father-in-law would act as a more passive private lender and the property could be deeded in your name and he records a mortgage against it.

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    @Victoria Creighton I will, I promise! Maybe I will just do a new thread

    0Reply
  • Simon Elwardany
    Pomona, CA · Member since 2015 · 5 posts · 0 votes
    10y

    Marshall, thank you so much for sharing your story. I have been on BP for about a year now and I do think is the best thing for ppl like myself Newbies but I haven't made a strong enough move toward doing my first flip. I don't have enough cash to do a flip on my own and when I look for private money lenders I have no exprince to lend me the money. What would be your advice to someone in my shoes???

    Thanks in advance

    0Reply
  • Darren McGillvrey
    Real Estate Agent · Veneta, OR · Member since 2016 · 48 posts · 12 votes
    10y

    Thanks @Marshall Downs I appreciate the response. 

    0Reply
  • Nancy E.
    Rental Property Investor · Charlotte, NC · Member since 2015 · 128 posts · 29 votes
    10y

    Hello @Marshall Downs

    Thanks for sharing your inspiring post. The process of RE investment is possible and with the learning opportunities available on BP website, many more of us investors will achieve our goals.  

    Good Luck and keep writing motivational post like this one. 

    From Nancy

    0Reply
  • Ramona Chapman
    Investor · Gordonsville, VA · Member since 2015 · 3 posts · 2 votes
    10y

    Thanks for sharing your inspiring story...this truly is a great site for a newbie like me!

    0Reply
  • Ann Miller
    Moses Lake, WA · Member since 2016 · 12 posts · 9 votes
    10y

    Can you elaborate more on the loan you got using your LLC? We have an LLC but our first multi unit property was bought under our names (regular bank) because they wouldn't give us a loan under the LLC. Were you able to purchase under your LLC because of working with a local bank? As you can tell we are newbies and would like to learn how we can purchase under our LLC.

    0Reply
  • Marshall Downs
    OP
    Investor · Benton Harbor, MI · Member since 2013 · 257 posts · 140 votes
    10y

    @Simon Elwardany You may have to start somewhere other than flipping your own houses. For instance, maybe you can find an investor to work with or possibly work as a real estate agent or agent's assistant. Something close to RE, but not all the way in since you have some hurdles with the lack of experience. Believe me, if I have someone who adds value to my business and they are just starting I can plug them in somewhere. 

    Begin to get some real knowledge of property values so you can spot a good deal because believe me they are not just out there waiting for any old investor to come along. I would guess I physically inspect 5-10 properties for every one I make an offer on and I may only get under contract on 25-33% of those because I typically offer aggressively so my numbers work. This was not easy when I was still employed but I knew what I wanted so I made it happen at the cost of sleep and the regular things most people do with spare time. I worked most Saturdays from 7-5 and many times a couple hours on Sundays. 

    Anyway, if you really want to get in it can happen, just going to take time and energy. Like I said my first year on BP was pretty lackluster. However, that was due to my not jumping in fully. Now that I have those early struggles are just good stories!

    Best of luck!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free