All Forum Posts by: Abbey Humphreys

Hey Timothy - definitely respect the hustle as far as wanting to build a portfolio. Rates are on the higher side right now, for sure, but I also understanding wanting to get after it. The BRRRR method, essentially what you're talking about, is a great strategy as far as scaling up.

(BP's own David Green has a fantastic book outlining the ins and outs of this method https://store.biggerpockets.co...)

As David Green himself says, the first BRRRR property is usually the most difficult. You have the "B" done and the first "R" is progressing. Now it's up to you as to whether or not you want to risk the higher rates and keep pushing forward or wait it out!

Hey Alex- there's a chance that DSCR would work although the DSCR mixed-use product is difficult to finance right now. Your best bet is probably working with a local bank or credit union that really understands the local market and can tailor the loan for you.

There are plenty of great options on this site alone, but along with that, a quick google search of some combination of "real estate"+"investor"+"meetup"+"*your market*" should yield results. 

It looks like you're in NYC- here is one this coming Monday: https://www.meetup.com/new-yor...

Other than that, like @Nathan Gesner said, Facebook is a great tool in the toolbox as far as connecting with others in this field and building a trusted team. 

I think a bit more information would be helpful!

Probably need a bit more information as to why you would want to run a background check with the tenants already in place but background check laws vary widely from state to state.

Sounds like you have a great plan and a head start on as far as capital. Single family to multifam investing isn't necessarily drastically different with the exception of time spent (can be mitigated with the use of a PM- something it sounds like you would be amenable to), cash flow potential, and types of financing that you would be eligible for. 

Given where you're at as far as personal cash flow, multifamily could be a great option for you. I would suggest finding mentorship and getting involved in the market that you want to invest in so you're familiar with the landscape and ready to pounce whenever a good deal crosses your path.

Obviously, real estate investments require capital, and it's crucial to have a budget in place. Also, have an emergency fund for unexpected expenses that may arise during property ownership. Also, as a beginner, it's often best to start with a modest investment. Consider purchasing a single-family home, a duplex, or a small multi-unit property to gain experience before taking on larger and more complex dals.

A key aspect in getting involved in your market is to real estate investment clubs, attend networking events, and connect with experienced investors. Learning from those who have already succeeded in the industry can provide valuable insights and guidance. From there, learn how to evaluate potential investment properties. Factors to consider include location, market trends, property condition, cash flow projections, and potential for appreciation.

Explore different financing options- like private lenders, partnerships, or real estate crowdfunding platforms. Understand the terms, interest rates, and associated risks of each option. If you want exposure to real estate without direct ownership, consider investing in REITs. These are companies that own, operate, or finance income-generating real estate across various sectors.

And to be truthful- real estate investing, like any investment, carries inherent risks. Market fluctuations, tenant issues, unexpected expenses, and economic downturns can impact your investments. Have a plan to mitigate risks and be prepared for unforeseen challenges.

Hey Ray! If you got a hard money loan for 100k, while paying 15% down, that would mean that the purchase price would be ~117.5k. Is this the case here? It is tough to tell what you're asking without knowing the cost basis of the deal. 

Regarding your second question- you would make monthly payments of $833.33 but you likely would not be paying down any principal with these payments, as most hard money loans are interest only. As a result, when it comes time to exit (refi or sell) you would need to pay off the 100k balance in full.

With your credit and current situation- if you're looking at a DSCR loan then there should be options for this property for 20% down.

I think what @Nicholas L. asked is great- a market that isn't necessarily Denver, itself, but close enough for you to keep an eye on your property would likely be your best bet. Investing far away from where you reside is significantly trickier and more rife with complications than finding something a bit closer to home.