All Forum Posts by: Zander Kempf

Does anyone have a good property manager they would recommend for boarding houses in the Manchester area?

As part of the tax policy changes included in the American Families Plan, 1031 like-kind exchange deferral amounts would be capped at $500,000. This will have a MASSIVE impact on real estate investing strategy. 

What are your thoughts on this proposal?

@Brett Davis Great decision looking to get into real estate investing. 

For your plan, if you are going to invest out of state, you definitely want to make you have a solid team of people you trust, including agents, property managers and maintenance people. Ideally you have multiple of all of these. I would also be sure to do an extensive amount of research so you can learn the local area, market trends, demographics, zoning ordinances, job market etc. Finding properties, especially investment grade multi families is rather competitive, so I would recommend finding some methods to source deals off-market.

Alternatively, find a real estate developer to invest your capital with. You can often own a share of larger properties with exceptional returns and have it professionally managed while you sit back and collect passive income. Even if you are new to the real estate realm, this is a great way to go to learn about the process and make some connections so you are better prepared to go off on your own. Feel free to reach out to discuss further.

Best of luck!

@Young Park This one was out in Oklahoma City

@Andrew Chong Real estate is all about leverage. These assets have very high values and often offer just low single digit returns when unlevered. 

If you're looking to BRRRR, that's a great strategy, but why don't you do it with a rehab loan? Then instead of buying a 50k property that needs 30k in rehab, you could afford a half million dollar property needing a couple hundred thousand in rehab. This is under the premise that you get a rehab loan for 85% LTC, which is quite feasible.

Alternatively, I know you said to aren't looking to partner, but if you find a developer to partner with, you gain a lot of valuable insights into the process of acquiring, renovating and stabilizing properties and likely set yourself up in a much position for future deals. 

@Cole Druffel I work simultaneously in multiple markets and have to say that by far the most important thing is building a solid team of people that you can trust. I agree with @Drew Sygit that many agents aren't the best for investors, but you can always find some that are. Otherwise, just put systems in place for them like clear criteria for prospective properties. 

One of the biggest challenges with working in a new and distant market is finding deals, since you now have to rely on the same publicly available information that the rest of the world has access to. This means your competition skyrockets. I would recommend taking some time to build relationships with local brokers to help breakthrough this, or find alternative methods of deal sourcing that aren't readily available to every retail investor with some extra cash looking through Zillow. 

@Dan D.

I would strongly recommend finding a solid developer to partner with via joint venture. Private lending is lower risk but has very limited returns and is far more work. If you find an experienced real estate developer, you can partner with them on rehab or new construction projects. This lets you own equity, ofter with a preferred return. With this structure, you get:

1. Passive monthly cash flow

2. Tax benefits from your equity portion of the deal depreciating

3. Appreciation of your equity

4. Most importantly, investing with a developer is 100% after you've signed the initial paperwork. You receive monthly deposits in your bank account, periodic project updates, and a K1 partnership return at the end of the year. Clean and simple.

Best of luck!

Investment Info:

Single-family residence buy & hold investment.

Great BRRRR property. Undervalued from the start, and with an inspection we negotiated another 12% off the purchase price. Quick cosmetic rehab and a new roof and we were ready for a tenant.
Strong cash flow and great long term hold in an appreciating area.

What made you interested in investing in this type of deal?

Value add opportunity in rehab work. Property has strong cash flow and is poised to see significant appreciation over the next 5-7 years.

Who has experience with an investor portal / management system they would recommend? 

Looking to manage small to medium size real estate syndications, including investor relations, disbursements etc.

Juniper, Wipfli, Groundbreaker...

@Maria T. It sounds like you already have gotten your feet wet in the business. Look back on your experiences in real estate and think about what aspect you enjoyed the most. What piece of it was the most fun to you? Then figure out how you can just do that thing a hundred more times this year.

If your answer was that none of it was fun and you're just doing to make money, find a developer who does love it and invest your money with them.