All Forum Posts by: Alexander Felice

You guys are funny.

Fayetteville Metro is 450,000 people

The military base is ~40,000 active duty on a good day

I think I have 1-2 military tenants against 32 doors. 

I'm not buying the fear here. 

Fayetteville is a decent area to invest, I invest there! 

Sure it has flaws:

ZERO appreciation no matter what anyone tells you, in fact because of the lack of growth above systemic economic increases, you'll find that many houses depreciate as newer homes are built since it often costs a homebuyer the same money to buy new houses year over year, So older homes just get older with no increase in demand. 

Increasing competition in the area make for people buying tight deals that won't ever get better. So you really have to "make money when you buy". If you buy a retail or close to retail deal in Fayetteville you're loooking at 30 years of meager cash flow and nothing else. This makes for a lot of complexity for a meager return, the stock market is a far and away better way to invest than that. 

There are pros though don't get me wrong:

You get economic insulation against the larger market forces. This makes it really lucrative for new investors.

There is a nearly endless supply of renters, so vacancy rates stay low and the price/rent ratio is a appealing.

Also be careful analyzing from a distance. There are pockets of the area that will look appealing on paper but will be treacherous to deal with. I don't really recommend anything under ~750/month rents. 

was it episode #301? 

first, yes you need a lender who can do this, and they are sorta rare. 

also know that Delayed Finance can only be used with YOUR funds, you can't use outside loans to do it 

the rule is 75% LTV or 100% HUD-1 whichever is LOWER. so your ARV on the project really matters if you want to get out your entire investment. Basically you need to create 25% equity or greater for this to work

you have to pay for both the rehab and the purchase at the time of closing. Once you close, HUD-1 is set and won't be changed.

You get the reno costs on the HUD-1 by giving your closing attorney (or title) an invoice from the contractor who is going to do the rehab, then they will add it to escrow disbursements.

hope this helps ;) 

@Joel S.

I think this post is consistent with my overall personality: disagreeable, and overboard on everything. 😁

As for motive, I'm just here to make good TV.

Yesterday there was a new post made by an experienced real estate investor whose sole purpose was to take a dump on new investors for no reason other than to feed a delicate ego.

So I felt it appropriate to say my thanks to Biggerpockets for teaching me so much about Real estate when I knew absolutely nothing, and with the massive influx of new members lately, I want to express my opinion that BP is mainly for beginners.

I started out like every investor here does: stupid and driven by ego, but AMBITIOUS to learn and get started. Now I own a bunch of rentals, an apartment building, I've made a ton of great real life friends here, I was on the podcast, and my business is growing faster every day. So if you're new, know that spending time here has nearly a guaranteed return on investment. 

It's also OK TO BE NEW. There are a lot of experienced people who contribute heavily here but the overwhelming majority are new people, and that's who the site is geared towards helping. New investors should feel the most empowered to participate and and post, this is the place to get guidance and there ZERO experience or knowledge requirement to post. I think it's counterproductive to the community to create a situation where the experienced people are laughing at new people, it's also sleazy and embarrassing. 

If you're new, it's ok to post things that might sound stupid. I say embarrassing and stupid things all the time, and I would CRINGE to go through my early post history, but that's ok because we get better as we go, and that's the whole point. Some people will might try to make you feel bad about it, that's just part of human nature, and it's not representative of what BP is trying to do. 

Overall, this is a magical place. So thank you BP, if this place hadn't make me feel ok to be a stupid beginner I would have never been able to grow to where I am now. 

@Mindy Jensen  @Russell Brazil  @Spencer Cornelia  @Jay Hinrichs  

I'm in Fayetteville

I own a bunch of SFR and a mutlifamily rental here. Working on flipping some houses for YouTube currently. I also host a small meetup on Sunday mornings.

Always looking to meet fellow investors! 

The definition of BRO investor here is every ambitious person new to real estate who doesn't know what they are doing but are TRYING, also known as everyone who ever started a business, ever. Yeah people do a lot of stupid things, except @Jonathan Greene who has never yet done anything embarrassing.

just kidding, the truth is I looked through your post history and ALL YOU DO IS COMPLAIN ABOUT NEW INVESTORS 

So in my estimation, you're the bro, and this kind of behavior makes you a NET LOSS to the community. 

I will be there! 

Very excited for the event, I tried to go this year but got SNOWED OUT while in Las Vegas if you can believe that. 

I'll be doing an epic photoblog like I did for the BP conference as well. 

Obviously my delayed finance process has been popularized for good reason (fannie mae cash-out refi with no seasoning)

Also, recently I bought a 24 unit apartment and wanted to bring outside investors in as a JV but I didn't want them to have to take on guarantor liability. Since I have been in banking for a long time I knew that most banks only require owners of 20% or more to guarantee the debt. So I just tweaked the ownership a bit and instead of 5 partners at 20% each we had 3 partners at 18% each. We all agreed and I was able to get them on board with no liability. 

Great thread @Shiloh Lundahl 

Partners are like marriages, I know this is cliche but it's the fact. 

You might get lucky and find a great partner quick and easy, but for most people it's a process. You want to find someone you know well, has aligned goals, and can get along with. 

Play the long game here, I know it's exciting to go fast, but like a marriage you don't want to elope after the first night. 

Spend time networking locally and digitally until you find someone who wants to do the same projects as you and has complimentary strengths/weaknesses.