All Forum Posts by: Andrew Angerer

@Brandon Sturgill Thanks for the prompt response, they were next on my list to call.

Hey everyone, I have recently been shopping around for a HELOC, I estimate about 65k in total home equity on my personal house and I have a ~800 credit score. I have mostly been calling local Credit Unions. My questions are the following; Should I let the credit union send their own person for the appraisal? Or should I find my own 3rd party company to do it? Are there any hidden fees you got hit with when you got your HELOC? I was suggested to go for the 80% LTV for a lower interest rate. Yet I want to have closer to 90% for the BRRRR method, is the 10% a big deal/ difference? I was told that everything would be free ( fees) if I took an immediate withdraw of 15k. Is this something used by banks often? What other advice can you spare? I'm looking to enter the market buying a 100k house to do medium repair and have it be value add. I do have liquid cash reserves

@Brandon Ribeiro I've heard from the podcasts several times that you can offer 3 of the following, Time, Hustle and Money. If he already has the money, and the hustle for the property, he doesn't have a lot of time. That's where you come in, offer your time, this could be for finding new deals, making offers, finding and interview ling great tennants. There are many other things that you can help with, just be sure to demonstrate your value to him and make a deal that is fair for both of you. Best of luck!

Happy new years everyone,

 I was recently fortunate enough to find my own real estate investing mentor, someone I work with at my W-2 job. Bob, who is a jack of all trades, is a deacon, owns an ostrich farm and has started a few clinical research labs in his life, also owns some rental properties. He had sold most of them when he reached retirement age, however he regrets this due to the fact that his 401k hasn't been holding up as well as he wanted.

  He has now mentioned that he wants to get back into the real estate game, and buy more properties later this year, which he agreed to have me come along to witness first hand how the whole process takes place. Additionally he has set me up with his real estate agent that is investor friendly and has started to send me potential properties to look at. 

 Now how did this all come about you may ask? Simply put, I told everyone I knew about my plans to start investing in real estate. I told my fiance, my friends, my parents, heck even people I met for the first time knew my plans. That's how it happened, I didn't hire anyone, or go to a fancy paid mentor program, I just told people, and one person just happened to be an expert at it. Instead of asking to pick his brain, rather I offered to help him with a tedious chore at work and we just got talking about real estate. At the end of it all, we both came out ahead, his task was done faster, and I got a bunch of new insight to real estate investing. After we were done, he said thanks for listening, showing me that he really does care about his investments and about helping others learn this.

People are willing, and want to help others, you just have to show that you are serious about something, then offer help or time to them to get the details. I hope this inspires some of you who are, like me new to the real estate investing world.

Think about it this way, why would any one have invested in Apple back in the 1980's when IBM was already around?? It's because there is the potential for a huge amount of growth for a little bit of money, granted increased risk. 

It is mostly the same in your situation; yes I could give my money to a pro company and let them handle all the details for me (probably make 11% return at best), or I could invest in you (an upstart, and share in unlimited ROI using the BRRRR method ) and have potential to make much more money. Granted the second option is more risky, but risk does come with reward.

Use this to your advantage if you are in need of funding (I'm not sure if you do or not) and show potential investors that you can reduce risk in favor of being able to get all their investment back (using refi) and then have constant cashflow for a long time.

Hope this helps,

Andrew 

Well, if the numbers are true then you fall in good range for MAO for a fix and flip.

I'd love to see pictures of the place, do you have any?

Congrats on the purchase! I know from experience that tenants can do so much damage to the property with out you knowing. Always have a security deposit that is refundable so they have reason to want to keep your property in good shape. Also, be firm with the rent payment time, don't let them get used being late, or else they will keep pushing you later and later.  

I doubt any city in the US is all one level of property class. All cities have good areas, bad areas and areas in between. Sure some cities may trend better than others but there are few that are all B. You have to look at the neighborhoods, blocks and roads for there can be a huge difference in each. 

Hopefully this helps, California does have positive population growth but does have many taxes, so investing here will be a mixed bag.  

Always expect the worst to happen with your tenants, they can be good people but still cause major damage to your property. Always have a very strong lease agreement and be sure to have a refundable security deposit, that way they have incentive to not ruin your property as much!

Best of luck !

Andrew

I never thought about general contractors that way, I agree, it is better to have more people with less of your money at one time than one person with a huge amount of it all at once. 

I will for sure look to get all the pro's in line instead of having a GC do it for me.

Thanks! Happy new year