All Forum Posts by: Chris Grenzig

@Phillip Kim why not both? Can you start a business around real estate in some way shape or form? Being a real estate investor is definitely a type of entrepreneur in my book.

@Jorge Mendez Jacksonville is a great market that we love and there's tons of C properties in the size and space. When trying to find a market to invest we always tell people a few things to consider.

1. Do you have family somewhere? Start in that market and see if you like it, if not then move onto the next

2. Is there somewhere you like to travel to, know well, or would like to go to regularly? As a property owner you should be going to check in on your property fairly regularly, so you should like the area you're going to.

3. How far away do you want to be from your current location? How easy is it to get there? Drive or Fly? Are there any direct flights? How much do the flights cost? etc...

4. Pick some "bigger" markets and then look at the surrounding submarkets and see if there are any you like.

We have JV'ed with people in the past who have brought deals to us that fit our criteria. If you want to chat let me know and we can set something up.

Hopefully that helps somewhat!

@Sam Lee I'll just touch on the upgrades you're looking to do. If I read this right you think if you did $5000 a unit to put in W/D and $5000 a unit in renovations you can get $100 premium a month per unit. That's quite frankly a poor ROI.

$100*12 = $1200 / $12k spent is a 10% ROI on that invested capital, so it will take 10 years before you get all your money back! Usually we look for upgrades to be 20% or higher because often times the upgrades won't last that long or it's just more likely they'll need another injection of cash.

However, if it was $12k for every unit to be upgraded, than this is great because it would be:

$400*12 = $4800 / $12k = 40% ROI or 2.5 years!

Even if it was $20k to upgrade that is still a 24% ROI.

@Leona N. Do you mean that you'd just being doing a ton of work for 4-5 months to get it up and running or this will be a 9-5 for 4-5 months? If it's a 9-5 I wouldn't pay anyone wages, if it's just hard work it might not be a bad idea. 

If you're using other investments to finance the other 35% I would look at the return you're getting on those investments vs. what would/could be making in cash flow if you used that money for the 35%. Leveraging other investments for the other 35% is definitely more risky, but if you have a job that's bringing in money every month and can cover the mortgage expense and the other 35% than it could be a good option.

Personally, I'd probably move the money and pay the 35% because in case something happens you're less exposed, but I'm more conservative by nature. 

@Tiffany S. Two routes I see you going. 

1. Wholesale it for a finder's fee to someone that has the money.

2. Find a Joint Venture partner and negotiate an equity stake where you put up some money (or none if they're cool with that), time and finding the deal in balance with the capital and/or time and expertise they have. We have people come to us with JV opportunities all the time and we'll gladly do it because while we bring a lot of the money and expertise, we spent 0 time finding the deal, just making sure it works.

Hope that helps!

@Andrew Lee if you lever the $250k into commercial you should easily to be able to find a stable cash flowing multifamily in the Memphis area. A multifamily in Memphis at $40,000 a door would buy you roughly a 25 unit. Discount it for closing costs, capital to improve and other possible costs, figure 20 units at $40,000/ unit gives you "$200k" in wiggle room. Maybe I'm misunderstanding the situation, but if you have $250k in capital I think there's much better options out there for you. 

If you don't want to go above $600k total value (reading that right from above?) buy a 10 unit or a 15 unit. Or maybe I'm not fully understanding the situation. If I can be of any help let me know! All I know is if you have that much capital, you should not struggle to own a solid property that is cash flow positive.

@Matthew Cretzman you never know why someone is selling as you saw. Always ask the seller/broker their reasoning and then go and do you're own research. If you listened to people dumping property because of Y2k you'd have lost out, if you had listened to people in 07 crash you'd have won. At the end of the day, if you buy for cash flow, and stress test you're properties and pro forma it out for a worst case scenario, than you should be in as good as a position as you could hope for. There's only so much you can account for.

I'm assuming they're 40 SFH, I would just go and talk to a local bank or credit union about loan and finance options as they'll probably be the best options to work with you on something in their backyard.

Maritza Soto shoot me a private message, I would, but my laptop is currently updating and I can't figure it out on the app lol.

Maritza Soto welcome to BP! I've found the podcast to be the biggest help when I was getting started. Hearing a lot of similar stuff from multiple guests really starts to impress upon you the most important stuff. I would also recommend Joe Fairless, Jake and Gino, the real estate guys, grant cardone, and Michael Blank of the top of my head. If I can help in anyway let me know and we also host a free monthly Meetup in Westbury, NY on a Wednesday night. Let me know if you're interested and I'll send you all the information and the Meetup group link. Either way best of luck!

Summer Worden I agree with Ronald Rohde , close to 10% down seems very unlikely, usually you get a loan at about 65% LTV when going bridge debt depending on the project and the lender. I'm also assuming that you mean it's a recourse loan if you say your taking responsibility. You need to look at what you are willing to risk and what you stand to gain if you do this project. If you stand to sell this for $3 million in 2 years you're return is going to be very low and not worth the risk of being liable for a $2 mil loan. Now if it's $10 million sale in 2 years we'll that's a much different story and might be worth it. You need to run the numbers and figure out what you're "oh ****" scenario is and how do you cover yourself in that situation.