All Forum Posts by: AJ Shepard

@Sarah Buchanan

I would accept for sure. When you find people with above a 700 credit score, let alone an 800 credit score they are quality people and care about paying their bills and specifically paying them on time.

I’ve screened more than 2000 people, and not very often do we find people renting above an 800 score.

@Scott Berry

I just signed up with rocket dollar. Super easy for checkbook control over an IRA and can still open a custodian account for trading stocks as well.

Nuview trust is a great as well, though they will review PPM and subscription agreements before sending out.

Broad financial has a good solo 401k, but if you have employees you don’t qualify for a 401k plan that you don’t offer to your employees.

@Paul Berard

There is always a learning curve in what you are doing. Let’s take this for example, first post on BP and you’re getting a good response. People are giving you great and not so great advice. You’ll wade through it and decide what works for you and what does not. Think of the same thing with your real estate career. It’s not always what you set out to be, but refines after you gain more knowledge and grows with you as you grow.

That being said, if you really do have that type of cash and are trying to figure out what to do. A few things, find a real estate agent that has bought and sold multifamily in the market. Ask for referrals from both buyers and sellers. Visit the area that you are going to buy. Most people start out in an area they are very familiar with. Real estate is about knowledge, you’ll get a ton here, but you need to know locally where you invest. That takes boots on the ground and figuring out where your money will be best placed.

Absolutely use leverage. Leverage is by far the real estate investors best tool (good debt please, bad debt drags you down). Keep buying or buy as big as you can that cash flows. I can’t stress enough cash flow. It hedges market downturns. If you plan on rental gains in the future to make profits your building your house on sand and hoping it doesn’t rain and sink.....

You’ve come to the right place, read a lot, listen a lot and talk a lot. Couple these things with some directed action and you will go far. Enjoy!

@Steve Morris

Has good advice of finding your local association and joining them. Oregon has a few, RHA or MFNW.

Other states and cities I’m sure are the same. Generally you will have to join the association in order to get the forms and the other services they offer.

@Kurt Sprigler

We’re not quite at 10 million yet, but on million plus we are going through CBRE financing department for Freddie Mac loans. Rates have been around 3.2-3.85 lately with 12 month reserve for covid released after 12 months of occupancy.

We typically buy with other lenders and not so great terms and then refinance through these guys once we have stabilized the property with generally a value add component.

@Justin Leste

There is a lot of work associated going from 2 to 3 units. I think that when it does pass you will be able to have a duplex + 2 adus which keep you out of commercial code. Adu will have to be under 800 sq ft.

I’m in the process of converting a 2 to 3 units and the previous comments are correct. Fire sprinklers, upgrades to water lines. The sdc fees and permits were 40k just on their own. I also think there is still a waiver on the adu sdc fees which says you won’t rent it out as a short term rental.

@Patrick Cousineau

Portland has some great neighborhoods! Are you planning on moving to portland to live in the house hack? If not I would definitely be very wary of trying to rent rooms from far away. Not saying it can’t be done, but I know it’s not a property that we would manage.

Nw is a great walkable neighborhood, anything close to the water is good too. I know St. John’s is up and coming. SW has a new max line coming in 6-10 years.

Best of luck.

@Aamir Shah

Once you’re at 10. Start looking for a partner that is credit worthy. There will need to be some trust, but they can also get 10 to their name.

The other route is pull cash out of them with refinances and helocs. Look at larger properties, specifically with loans above 1m, so purchase price needs to be 1.4m at least. There are Gov backed loans in this arena and if you qualified for the 10th, you’ll most likely qualify for these. You can get as many of these as you want.

@Amos Record

I see that your revisiting your idea of how to get into real estate, best of luck.

One thing I wanted to touch on is that the the reason that Real estate can be such a good investment is because of the leverage. So you would always want to use a bank or lender as you only pay 3-5% for that money, where as and investor is going to look for 12-20%.

I have heard of instances of IRA syndications that will use a 100% equity to get out of paying for the UBIT taxes. But generally leverage is your friend and the higher leverage you can get, more often the bigger the returns can be.

@Marc Nicolàs Mariano

That doesn’t seem like the right mindset. There are deals out there, it just takes a lot of work to find them. But ya, the pickings can be slim for sure if you’re expecting something to just pop up in front of you.

We just bought a condo from a wholesaler, 165k, don’t have to do anything to it. Sell for 220k. We’ll see how it goes.