All Forum Posts by: Adam Scheetz

@Tatyana M. Thanks for the info. I'm definitely not looking to occupy a Fannie Mae property, only pick one up as a buy and hold. I was just curious about the simplicity or lack thereof in terms of dealing with Fannie and acquiring a property from them. Thanks Again. 

So, after that 15 days does/should it become available to the common investor for a non-owner occupier investment?

I'm looking at properties in the Jacksonville, FL/North FL area. I'm coming across Fannie Mae/Home Path properties. I've never really dealt with them. I've heard of Fannie & Freddie on some forums and some BP podcasts but never really dug into or heard extensively about Fannie Mae properties. Can anyone offer insight, resources, or educational material to get me up to speed on what it is? What to know about them? Good or Bad investment idea? 

Thanks In advance!

Adam Scheetz

Hey Tim, 

Welcome to the newbie Club! I've only bought, rented (2 yrs), and sold one property. I'm hopefully moving to Jacksonville later this year and have been looking extensively all over FL, especially in the J-Ville area. Everything from Low-Income, Middle-Class, Suburbs, MFH, Wholesale, and Foreclosures. Good deals are there, just not terribly plentiful. I too was looking for buy & hold specifically in Multi-Family. That being said, after listening to over 60 podcasts starting from the beginning of the BP Podcast and still working my way up through the years, I've noticed a trend among most guests that made me redo my plan [Which I've posted on a prior Forum post]. First, preparation is crucial because money is made when you buy. Got to get the deal done right and within preset margins from the start. Those margins are a byproduct of educating myself which is an ongoing process. And Second, leveraging your contacts and relationships with people in the areas you want are very important. I trust local realtors far more than the internet or sellers. I've gotten to where I'm cold calling brokers, giving them my story, telling them my parameters and what I am trying to accomplish, and getting on their email bang lists. It seems as though the good deals originate from these brokers and networking more than MLS, Redfin, Trulia, Craigslist, ETC. I look forward to following this post and hopefully seeing you finding success in a few markets that workout for you.

Best of Luck,

Adam Scheetz

Greetings All,

Attached is an analysis Exel Doc from BP for a property I'm looking at. It's in a Low-Income/Lower Middle Class neighborhood. Not a bad neighborhood, but not a "doors unlocked" area either. The average rent within a 5 block radius is $750-950 per month. Recently renovated. Vinyl floors, Laminate Countertops, aged tile bathrooms These numbers are assuming a no haggle purchase at listed price with 75% financing. [I can't quite get the spreadsheet to take into account additional financing amounts]. If I figured this right, the spread sheet is a little more finite with certain expenses accounted for like a CAPex account and no 40% or 50% rules applied. Conversely, at the 50% rule marker; $10,800 Gross Rent x .5 = $5,400. $5,400/$17,000 (Initial)= 31.7% ROI.

I'd appreciate the wisdom of an experienced person looking over this and validating, invalidating, or correcting me on where I may have gone askew. 

Very Much Appreciated,

Adam Scheetz

I'm hesitant to look in those areas. Not because they're not good, but because I have zero affiliation with them and my experience level is minimal at best. I may be off here, but I like the idea of driving to a property I own. Due to lack of experience or resources or both, I'm uneasy with initiating deals that I can't tangibly affect. I'm sure in the future I'll be all about any deal anywhere but for now, I'm hesitant. Fear of being burned I suppose.

That's what I was thinking too. I feel like the liability and complexity is lower with SF. Best to not just jump in the deep end while learning to swim.

Dawn Brenengen Thank You for your response! The last 11 years have gone by fast and I'm hoping the next will also. I do currently live in Elk Grove. The market is outrageously inflated here. Over $1.00 per square foot for rental easily. And my current house I rent, which is not fancy or upgraded in any way is about $218/sq.ft in sale price. I am not interested at all in buying here in this State until the market corrects itself. Way too many people are working lower middle-class jobs and financing houses WAY above their means. It's just a matter of time. My $0.02. Right now, I'm just trying to educate myself a lot and analyze a bunch of deals to become more familiar with the processes involved. Thanks Adam Scheetz

Michael Wagner Thanks for your encouragement. I've started this whole process from self-storage research and it seems to me that in order to get into a good deal, with a good CAP rate, in a good long-term area in SS I need some decent capital and experience with the whole commercial real estate side. Though I want to end there and would love to start there with no toilets, tenants, or trash, I didn't see a viable path without cutting my teeth on smaller ventures. My overly simplistic formula is as follows. Flip house make capital. Take capital and invest in MF. Use Net income from MF to finance Self-Storage venture. Retire happy!

Caleb Heimsoth I lived in Wake Forest for 5 years and Raleigh for 2. I have an agent friend in Raleigh who has said the same thing.