All Forum Posts by: Aldo Fazio

Turn key investments are tough to make sense of right now. Value-add is almost required if you're looking for a 10%+ return on investment. That being said, you aren't the only one. Looking at 100+ deals to find one that makes sense is the norm right now. 

Another finance angle.  Do you own your home?  Sell it. Tax free up to $500k capital gain if married.  Use that money to live in a property like noted above.  Have your home earn money for you.  

House hack the hotel. Change up the product mix. Overnight. STR mtr. LTR. Rent out the bar and restaurant. Put some rv parking spots and campsites in. Go for a mixed product offering.

Hey @Aldo Fazio

there's lots of great things in this thread and I feel like I'm uniquely qualified to speak on them. I'm an investor that lives in Fresno California and also invest in Kansas City and have for the last several years.

in regards to holding your cash in a money market at 1.5% I would definitely get that moved over to a high-yield savings account. I understand there may be some nervousness around the fact that they're entirely online but there are legitimate Banks that offer great interest rates. Ally Bank is one such Bank. I use synchrony Bank myself. But there are many. This money stays liquid and is paying around 5% interest right now.

in regards to finding a deal if you want to stay with on market or listed properties I think that the answer as usual is to develop relationships. I do see a lot of good deals that come through from bank owned properties currently so reach out and try to find out who the realtor is that lists the bank owned properties. You can also speak to each Bank individually but that's going to take considerably more time. The other way to find good deals is to get on all of the wholesaler lists. If you go into the Facebook groups for Kansas City real estate investing you'll quickly find a lot of them. Also if you do a Google search for sell my house fast Kansas City and go through the top 30 websites putting your information in to their investor portion. Be careful not to put your info into the main site as they'll think that you want to sell to my house but they usually have spots where investors can put their information in to buy properties.

I would caution against buying anything in Kansas City for less than $100,000 with cash this won't leave you any money to do renovations and sub $100,000 properties are not in good areas. You used to be able to find these four to five years ago but the market has taken off. Now I wouldn't be looking at anything with an arv of less than 150 k. Even then cash flows are going to be tight to non-existent. The best I think you can hope for right now is to find a property where you break even after capex maintenance and vacancy reserves. The play would be to refinance in a couple of years once rates decrease to get your cash flow at that time. This isn't a great use of capital when you can get a 5% risk-free return. But if you believe that rates will decrease and that home values will stay flat until then you should expect property values to increase once rates decrease. By buying now you're locking in a lower property value than the expected higher One later. The other way to do this is to buy an already discounted property that needs renovations and given your skill set this seems like an easy entry point. You will likely still not have cash flow after the refinance but you will have built-in equity. So perhaps you can walk away from the renovation with 40K in equity and a property that breaks even which is still a win in today's market.

if you have more specific questions or need help feel free to reach out!

Hey @Aldo Fazio

there's lots of great things in this thread and I feel like I'm uniquely qualified to speak on them. I'm an investor that lives in Fresno California and also invest in Kansas City and have for the last several years.

in regards to holding your cash in a money market at 1.5% I would definitely get that moved over to a high-yield savings account. I understand there may be some nervousness around the fact that they're entirely online but there are legitimate Banks that offer great interest rates. Ally Bank is one such Bank. I use synchrony Bank myself. But there are many. This money stays liquid and is paying around 5% interest right now.

in regards to finding a deal if you want to stay with on market or listed properties I think that the answer as usual is to develop relationships. I do see a lot of good deals that come through from bank owned properties currently so reach out and try to find out who the realtor is that lists the bank owned properties. You can also speak to each Bank individually but that's going to take considerably more time. The other way to find good deals is to get on all of the wholesaler lists. If you go into the Facebook groups for Kansas City real estate investing you'll quickly find a lot of them. Also if you do a Google search for sell my house fast Kansas City and go through the top 30 websites putting your information in to their investor portion. Be careful not to put your info into the main site as they'll think that you want to sell to my house but they usually have spots where investors can put their information in to buy properties.

I would caution against buying anything in Kansas City for less than $100,000 with cash this won't leave you any money to do renovations and sub $100,000 properties are not in good areas. You used to be able to find these four to five years ago but the market has taken off. Now I wouldn't be looking at anything with an arv of less than 150 k. Even then cash flows are going to be tight to non-existent. The best I think you can hope for right now is to find a property where you break even after capex maintenance and vacancy reserves. The play would be to refinance in a couple of years once rates decrease to get your cash flow at that time. This isn't a great use of capital when you can get a 5% risk-free return. But if you believe that rates will decrease and that home values will stay flat until then you should expect property values to increase once rates decrease. By buying now you're locking in a lower property value than the expected higher One later. The other way to do this is to buy an already discounted property that needs renovations and given your skill set this seems like an easy entry point. You will likely still not have cash flow after the refinance but you will have built-in equity. So perhaps you can walk away from the renovation with 40K in equity and a property that breaks even which is still a win in today's market.

if you have more specific questions or need help feel free to reach out!

"I would love, love, love to find a property that I can work on myself. It's the only kind of experience I have in real estate, but Nor Cal and Cali in general is still out of reach for me.."

This is what jumps out the most when I read the thread, and I wonder two things:

1. have you tried to find a partner where your are, and JV a deal together? Seems there are lots of people trying to find a good GC. One that has some capital to invest could be a real find for someone.

2. why aren't you moving to KC? Not permanently, and not your whole family, but why not get enough of a landing spot to be there for a build out? Maybe you could even crash with one of those industry contacts you've been making.

What I’m talking about is your funds would be tied up by the lender holding your loan. This is to get a lower interest.  But versus paying Dow you would

Be receiving interest.  

Unless you have a national bank your going to want a

Local bank.  I would

Reach out to all of the bankers in the area you’re interested who handle distressed properties.  Also reach out to their trust departments. Get in their buyers list and develop a

Rapport. 

How many offers have you made based on your numbers?  Not the asking price?  

Versus putting money into the deal have you looked at putting money into a cd or mm with the bank loaning the money to get a reduced interest rate?  Plus you earn. 

Since you're a GC versus looking for a nice 3/2 have you looked for a 2/1 that you can ADU to a 3/2 easily. Or subdivide a lot?

Basically what “angles” have you looked at?