All Forum Posts by: Adam Giles

and that's fair....something I don’t have to worry about quite as much since appreciation in the rural Midwest is not nearly as volatile as it in in your area. Good luck! 

There are methods for starting with “nothing”, which are of course much more difficult than starting with a wad of cash. You may need to get very creative and perhaps find something that someone will owner finance with little or no down payment. You may need to find a partner who has the money. In that case you need to ask what it is that you bring to the table? Is it the deals? If you get obsessive about analyzing deals in your area and find partners who want the deals but don’t have the time or desire to find them….that’s likely a good partnership. Where there’s a will, there’s a way.

I find in situations like this that doing ANYTHING, is better than doing nothing. I think I heard Brandon quote someone (cant remember who) way back in one of the first podcasts…."the hardest working people always seem to have the most luck". It always stuck with me and I find it to be true. I believe in Grant Cardone's philosophy on work ethic too, and I still try and employ it since I tend to get stuck in thinking mode. He says to do 10 things every day for your business. In the early stages it may be attending a REIA mtg, or calling a loan officer to explore options, or reading 30 pages of a REI strategy book. In later stages it might be entering monthly expenses in QB, driving by properties, or analyzing 5 potential deals. It's amazing how many pieces of candy fall in your lap when you are running around like a madman bashing every piñata in sight.

Welcome @Ryan Conrad. I agree with @Tyler Ansell.....jump on in. Im not saying do anything crazy, but if you have been running numbers and you find some that work........jump on in. Its amazing how quickly your education takes off when you are actually in the game vs in the stands. Nothing beats experience. 

If it were me, and my first glance at these numbers, I would expect that those expenses are pretty low. If I got that number on proforma I would likely be adding 50% to that number until I had more precise information. I also agree with earlier comments that 30 years at 4% would be tough. If you do make that happen, I will be over hear with a note pad and a tape recorder waiting to hear how you did it. Based on the financing I am getting and the amor schedule I decided on, my debt service would be 4-5k. Also, that income has the average unit at $475. We don't know the exact mix but does that income number include occupancy? If not, I would knock income down to $8550 (90% occupancy) and up expenses to a min of $4250, and debt service at $4500. For me at first glance assessment, I would be hesitant until I had better numbers. I have it conservatively losing   $200 per month. Although I do tend to be ultra conservative on my first passes. 

My personal opinion is that there is so much information available to usthat there should be no need to pay a "guru" unless you do not have the time to seek it.  The value in these programs is not that they have some insight that cannot be found elsewhere, likely for free, it's that they have made the process of gaining the necessary knowledge decidedly convenient.  If are willing to pay for that convenience, the course will likely have some value.  
I would be concerned the moment someone charged me for knowledge and then asked for more, even shares in a deal, during the program. That's not education, that's fleecing.

I agree. You have to decide on a strategy and then put the pencil to paper, or finger to keyboard in most cases. 
The numbers may work if you intend to live in the primary unit, but not if you don't.  The numbers may work if you intend to rent both units but not as a flip.  Having a clear strategy is a key first step. Purchase price is only one factor, and not even the most important factor for some strategies.

Do you know what you intend to do with the property? 

I refinish hardwood where available. I use laminate when not. So many good options and deals can always be found. I use sheet vinyl in kitchens and bath. I know some people feel that it damages too easily but, it also repairs easily, is very inexpensive, and installs VERY easily. I am also not dealing with luxury rentals either. My properties cost $40-65k and rent for $500-600 per month. I may not use the vinyl if I was dealing with a $200k 3-2-2 in an A neighborhood. 

I have great luck with my local community banks. Deals will differ slightly between them so definitely talk to a few. I like to hear the loan officer using creative language etc because it likely means they feel like they have some flexibility and that in turn means they likely have a good relationship with loan committees/underwriters etc. Be sure to be honest and upfront as well. I had a couple of deals under my belt at 75% LTV and mentioned to on officer "geez it would be nice to get this one at 80%". She just replied "I think we can this one done at 80%". You never know until you ask.

I admit hedging on advise sometimes however this is one area, due to personal experience, that I can say that I strongly encourage newer real estate investors to find a good CPA and build a relationship with them. I recently began converting my books over to QuickBooks and began working with a CPA at the same time. I have in the past due to the complications of being a consultant working across state lines and having to worry about the SS min etc. With multiple properties, each having quite different depreciation schedules (complete remodels, vs repairs, vs furnace replacement, vs etc), and having multiple LLCs with different share structures, I began to feel like it was time again. Having these conversations with the CPA as I converted my books has completely changed the way I think about my record keeping, how I take draws, how I may structure partnerships and investors going forward....

Other than perhaps a good real estate lawyer, from my experience, a good CPA is critical to a young real estate investor's performance. 

I had a similar situation very recently where I had a folk up dumpster at property for some between lease updating.  The dumpster was placed on the side of the property that is alongside an alleyway. One of the neighbors also on the alley started using the dumpster for their personal garbage. 
I err on the side of not stirring up trouble because a few bags of garbage is nothing compared to what could happen if I call them out on it. Someone who would those their garbage onto someone else's property clearly has no respect for others so I would not be surprised to start finding broken windows etc at the site.