All Forum Posts by: Brandon Turner

Samantha M. Exactly right! Typical length is 6-12 months. I like to go 2 years, just in case though. And refinancing into a long term with a bank is doable, but in today's lending conditions it can be tough if you don't have a great stable job, good income, and good credit. Sounds like you are on the right track though! Keep in touch!

Hey Marlene! Welcome! It's great to have some experienced people come on board to help share ideas! Don't be a stranger!

Hey Marte! Welcome aboard! I always suggest finding a succesful house flipping in your area and have them mentor you. They teach you what they like, and you go find it - making a bit of a commission. It's truly win-win!

Good luck and keep in touch! (If I were in Dallas area I'd teach you what I could!)

It's my opinion that most mortgage people can do the exact same thing - it's finding one that actually will work for you rather than just make you another number. That said, I'd ask for referrals from other investors who use them. I'd also want to know how long it typically takes to close a deal, if they have hard money lenders in their contact list, etc.

Hey Jay Smith,

If you haven't read it yet -check out the book "Making Big Money Investing in Real Estate: Without Tenants, Banks, or Rehab Projects" by Peter Conti and David Finkel. It's a great one for learning to wholesale and negotiate with homeowners.

Good luck and keep in touch!

I've not done a lot of this, but my main advice would be to be genuine. People can spot a salesman or someone trying to take advantage real easy.

Secondly, if they aren't home, things like a note handwritten on a piece of yellow paper probably will be better than a nice professional paper.

Third - remember most likely these people are struggling and proud. Cater to their ego. Blame the bank, the government, etc for their financial problems.

Those are just a few thoughts off the top of my head! Good luck!

Hey Samantha. The numbers look pretty good, but a few things:

NOI, by definition, doesn't include the debt payment. I understand what you are saying, but fyi - that $2,695 would be just a probably estimate of net cashflow.

Are you planning on a Hard Money Lender financing something like this? With those numbers, it's probable - but typically a HML is not going to do more than a year (maybe 2) and most likely you'll be paying 12-15% interest - not 3.45%. If you are using a bank - it sounds like a wonderful deal. But if you are going to use hard money - the deal quickly falls apart. Can you get a 30-year fixed loan from a bank or credit union on this?

Thoughts?

Bienes Raices, Good question, but I'm not sure what the benefit of that would be. I only sign a lease after money is paid, so I figure if they pay but don't move in for a while - that's just money I'm getting anyways.

However, when you sign the "hold agreement" or whatever you wanna call it that basically holds the unit for them until a certain date (after they pay a holding fee, of course) then yes, there should be some kind of time line.

Hey Kenneth E. - I love quads, tris, and duplexes. I don't necessarily do just one of anything - but they are my favorite.

This is going to sound like a terrible pitch fest,(sorry moderators!) but I outline a sort of "business plan" with a free eBook I give away on my own personal blog (see the web address below). Maybe you've gotten it already, but it's basically my manifesto for using small multifamily properties to build up an empire :)

For me, it doesn't matter the number of units as much as the "cashflow per unit." I want a minimum of $100 per unit - but preferably $200 - after all bills and expenses are paid. That way, it just becomes a math game. How much do I want to retire? $10,000 per month? Ok, I need 100 units. $5000 per month? I just need 50 units. Basically, I'm in the business of collecting units that fit my criteria (100-200 per unit, nice area, etc).

Good luck and keep in touch!

Hey Gerald L. -

You sound like you have quite the team developing!

My thoughts, for what they are worth:

1.) Flipping is like Black Jack It's fun, but over time the house always wins and the investor always loses. You might win once, or twice, or even ten times - but you could lose it all in one hand.

Unless you find ways to beat the house odds.

That's done through proper Math. You must guard against every possible contingency. Have multiple exit strategies. (See my upcoming post on the BP blog tomorrow (Sunday) as it's about this).

2.) It sounds like your small business that you own is very successful. I would think hard about throwing money into real estate flipping when you are already really good at one job. Unless you hate your job. But Flipping IS a job, and takes a lot of practice to get good at. I think for sure you should invest in some real estate - but flipping might be risky for what you've already built. But -if your heart is set on flipping, and you've done the proper research to beat the house odds, then -

3.) Your friend with the 700k house - could he get a Line of Credit on that house? If his job situation is solid and banks like him - he could easily pull out $500,000 in a line of credit or loan. Add that to the $130k between your bro and you and you've got $630k. So, you could find a house for $350,000, sink $50,000 into it, and have $400,000 total invested (leaving you with a few hundred k for emergencies).

Another way to look at the guy with the $500k - could he be your "private lender?" he lends you money on homes for an interest rate of like 12%. That way, he is purely a passive investor - not splitting the pot with you. Sometimes having a team can make too many cooks in the kitchen.

Finally - what price range are you looking at? Where I live - $500,000 can buy you a twenty unit apartment complex. I'm guessing down in San Fran, that will probably get you a shack. :) But you said, "investing outside of San Fran" so what's your goal?

Anyways, what are your thoughts? Be sure to tag me in the response ( @Brandon Turner ) so I see it!

Thanks and good luck!