All Forum Posts by: Berry Starnes
Berry Starnes has started 10 posts and replied 50 times.
Amazing answer Brian. I appreciate your feedback. I’m in the Scotts/Portage area, so I want to keep it close at first. I like the idea of getting the dimensions and running to the big box stores for pricing. Maybe I will try and get a contractor to come in to a few houses with me for practice, so I can get an idea of how they do things. I’ve read J Scotts book on estimating rehabs, but it’s all book knowledge at this point. Need to get out there and practice. Great suggestions on notebook, tape measure, and photos/videos.
This helps a bunch. Thanks
Newbie here. I'm currently getting my finances, agents, lenders, contractors, etc in order prior to finding deals. When you have found a deal you believe may work, but need a better/closer estimate on rehab costs how do you go about having your contractors see the property? Do you go ahead and put an offer on the deal and then get the inspector and contractor there at the same time during your inspection window? Do you have the inspection done first and then bring your contractors? Do you have multiple contractors take a look as I heard this is best to do? Or do you simply take videos/photos during your initial view of the property and send it to them prior to making an offer? I know once you get better at this you may wait until after an offer has been made to bring your contractor in for the majority. But, for my first one/few deals I don't want to waste everyone's time.
I would like to know your process. Thanks in advance!
Post: Kiyosaki has spoken - October economic crash coming!
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writing is on the wall with our fiscal policies recently. It is impossible to tell when a downturn will occur. But, the stock market is not going to give good returns for the foreseeable short-term future IMHO. Also, Have we really changed the lending practices of 2008? Once inflation hits faster than appreciation (can we say this is happening now?) we will see an increase of supply to the market driving down prices. Tough for some to pay mortgage/rent with $10 gallon of milk and no job. Hiring signs are everywhere and now we are firing even more workers with the vaccine mandates without unemployment benefits. Taxes will be increasing on businesses and will be passed on to the consumer. Money printer running out of ink. People will be struggling soon. If you see a Rosy picture you may be sheltering in place too long.
After All this..long-term..I'm always bullish. But, do I have cash on the side and bitcoin. Yes.
Post: PM literally harassing me - KC
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@Jonathan W.
Fire your PM and hire this guy it sounds like.
Post: Kid going to college - RE strategy options?
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@Joe M. Oh dang. This is true
Post: Getting back into the game: BRRRR/Refi question
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@Alfred Koenig III what do you owe on the two properties? Tough to know without that part of the equation.
Post: Looking for Insight in GR Market
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@Sean Sloop since you mentioned..do you have any personal experience in the Kalamazoo/portage area?
Originally posted by @Michael Gansberg:
@Berry Starnes - in the A-class properties/locations, I think there is negligible pain, and tenants in those locations are paying as though nothing happened. In aggregate, the A/A+ tenants are more flush than they were pre-Covid, in my opinion. In the C-class locations/properties(and below,) the non-payment rate is likely around 20%-25% in areas which shut down due to Covid(I can't speak to this percentage in areas which didn't experience shut-downs, but I'd expect this percentage to be lower in those areas.) Of this percentage, many tenants(can't provide exact numbers, unfortunately) are skipping their rent payments because they can skip them, not because they have to. Investors in this property type are suffering for loss of income, but are flourishing due to higher property prices.
If there are substantial evictions, the tenants being booted will often have dodged rent for a year or so, making them pretty liquid(unless they spent it all on stupid things! Always a possibility.) When vacancies arise in large quantities, I expect we'll see some rental rate inflation.
Bottom line- if you buy intelligently now, you will have nothing to worry about later. When you zoom out far enough, all this stuff just becomes noise.
Thanks for your feedback. All of this is very encouraging. Meeting with realtor next week and looking into financing. Gotta jump in the pool if you want to swim.
Originally posted by @Aaron Clough:
@Berry Starnes I think as a new investor your in a unique position, entering the market at this time. By going through due diligence you can see, if a property is tenant occupied, what their track record has been with rent payments. If you pass on deals that are potentially eviction situations or non paying tenants and focus on finding ones with good tenants in place or placing well qualified tenants, you will probably save yourself some headaches. Just one man’s thoughts.
One man is all it takes. Thank you for your comment
thank you for all your Rosy Forecasts! It's encouraging to hear that nobody had any issues with tenants during this time. I'm in Michigan which was one of the states that locked up and never seemed to want to open up. We had a few restaurants that had to open up against orders or they were going to go under. Can't fault them for that. I have seen numerous for sale signs on commercial real estate (too many to count) and "now hiring" signs on every single business. Not joking. Something just doesn't add up for me, so I wanted to make sure that things were as great as everyone says they are. I still have a shred of doubt about what the immediate future brings when it comes to tenants being willing to pay or having jobs once stimulus and unemployment dries up. Be fearful when others are greedy keeps popping up in my head. However, Real estate may be one of the best places to be in during this time as inflation kicks in and there will always be deals to be made. I can't help but think the can has simply been kicked down the road a little on this one.