All Forum Posts by: Axel Ragnarsson

@Jeff Formeller Hey Jeff, you're absolutely right.. execution is key. I have not done any outbound marketing to find leads or deals, I mostly just tap into my network to look around. I have my real estate license and went out of my way to hang out with an investor focused brokerage, which is in part how I found this deal. A client of my broker actually submitted a low offer on this property, had it accepted, and ended up backing out of the deal. Since I knew the sellers were willing to knock a lot off the price, I made the same offer and locked the property up. My first deal was found on craigslist and was a FSBO - I look on craigslist almost every day, you never know what you're going to find.

@David Ford Hey David! The property is on Green Street, so just far enough away (in my opinion) from elm and "Corey Square" for it to be considered a bad neighborhood. 

@Nicholas Doucette Hey Nick, thanks for the reply. There are still deals to be found in Manchester, however you have to be careful that you don't buy in the wrong area. Most of the stuff on the MLS is near elm street and (in general) located in shady areas that are predominantly section 8. Depending on what your goals are, if you aren't too risk averse you can get some 2-3-4 units in these parts for cheap money, or you can focus on the north end and look for "less tumultuous" investments that come with lower cash flow.

@Brett Snodgrass Thanks Brett, I appreciate it!

@Roscoe Parsley You're killing it! I've put about 5% down into each deal so far, with my first property cash flowing roughly $400 a month and my second (the one mentioned in this post) cash flowing $300 (this is after 10% vacancy, 10% maintenance, and 10% capex).  The cash flow is lower on the second property despite the higher PP because I'm giving 10% of gross rents to the cosigner until I refinance.

CoC numbers for 1st deal - $9,745 down (5% on 194,900 PP). Yearly cash flows of $4,800. CoC return of 49%.

CoC numbers for 2nd deal - $12,500 down (5% on 250,000 PP). Yearly cash flows of $3,600 (for now). CoC return of 29%.

@Tim Koger Thanks Tim! On my first deal , I ended up working with a small local credit union for financing. It was a really good deal, and they were more flexible than any large institution would have been. I ended up getting a standard 25% down loan, and financed 20% of the down payment through a combination of family friends and investors. For this last property, I did something similar - I raised most of the down payment from private lenders and had a trusted family friend cosign on the loan (since my limited income would have never allowed me to get another.) In return, I'm giving the cosigner 10% of gross rents until I refinance (which I'm hoping should be within a year, once I have a larger W-2 income).

Hey everyone,

A few weeks ago I hit an exciting personal milestone and wanted to share it with all you great folks here on BP. In the beginning of September, I closed on another three unit property in Manchester, NH. The purchase price was 250k, and current rents are $3,600 a month. My portfolio now consists of a total of six units (two triplexes), both acquired in the last six months and all before my 22nd birthday. 

If it wasn't for the BP forums and podcasts I would not have been able to get started and have so much confidence early in my investing career. Being so young, creative financing is the only avenue in which I can purchase real estate, and the resources on BP have been invaluable in understanding how many different financing options there are. For all the young members - It IS possible to buy real estate despite having minimal income and no history in the business.. It just takes a lot more time and effort. When I turned 21 I set a goal that I wanted to acquire 100 units by my 27th birthday, and I feel that if I continue to grow and scale my business that it is becoming achievable! 

Cedric Moore Hey Cedric, I live and invest in NH. You'll want to focus on the southern part of the state and the seacoast areas. Manchester is the biggest city in the state, and there is a lot of opportunity if you stay away from the bad neighborhoods (around elm street and the verizon center for broad strokes purposes). Towns in the southern part of the state like Derry, Hampstead, Pelham, Sandown, etc. are great areas as well. Also look out for the seacoast (Portsmouth, Dover, Durham, others). Portsmouth is one of the nicest places to live in New England and its growth is spilling over into the surrounding towns. Hope this helps and if you find a deal please be sure to let me know!

@Tom Pignatello

That is essentially what I did. However, I spoke with many banks and credit unions before I offered on the property to find a couple that I knew I had the "best chance" with (I knew which banks would not finance me under any circumstances and which ones would consider financing a good deal). After I put the property under contract, I brought the numbers to these lenders and found financing from one of them.

@Maria S.

Thanks Maria! Good luck on your search.

@Justin Young

Justin, go ahead and PM me with any questions. I'd be happy to help and I actually just closed on another property a few days ago that I structured in a similar way.

I was actually just about to write a post similar to this, and you knocked it out of the park. I'm 21 years old and just closed on another multi and own six units currently, all which I acquired in the last six months. I still have another year in college and can't wait to hit it even harder after graduation. If you ever want to chat or need a guest for your podcast I'd love to jump on if you'll have me.