All Forum Posts by: Chris Reyes

Hey Marc!

Do you use the 2% just as a personal preference, or is it because some other factors that you take into consideration when investing in the area you are in?

And yes that's the number one thing that I have learned so for is to get started on creating a team that will help me not only for the first deal, but for the many more deals to follow.

 Lane thanks for the comment! 

I was initially just cold calling any given agent in different states and really got no where, which isn't a bad thing considering the response to my question. I will start working towards establishing relationships with other investors in order to find great referrals so I am not shooting in the dark.

As far as the leveraging, I agree that leveraging is important as long as your maintaining cashflow, and like you stated there are debates on some leveraging vs over leveraging. However, I believe there shouldn't be a set amount of time whether to buy or not. I feel like the time it takes to develop a team and then find the property should determine when I am "ready." The only way for me to learn is to start the proccess. And if I do fail, I am sure I will learn lessons to get me even more prepared for the next deal.

And yes i agree the apprasial and inspection are key because of the possibility of a severally damaged foundation or I am sure numerous other things that I could end up having to fix that was not factored into my Rehab budget.

 Thank you for this advice! I agree that education is the best form of offence and defence when it comes to any type of investing. I started to listen to podcasts on David Greene since it seems he has great insight to OOS investing. 

And I have also been studying the demographics of Ohio to determine the cities, but the best way I am going to find the real scoop on the market is establishing a team that is more familiar with the areas. 

Hello Everyone,

My fiance and I have started looking into investing out of state after months of debating of how we are going to expand our real estate portfolio. 

I am from Northern Colorado and our state has enjoyed a huge appreciation in the last 10 years. I personally have had 2 rental properties. The first one I had was bought in 2015 when I was 23 and ended up house hacking the property (had no idea at the time it was called that at the time). The second one I bought as a rental. 

Due to the great appreciation from the first property, I was able to sell it making a good profit without having to pay capital gains because of being sold within the 3 years of living in the property. And I have spent the last year investing into my knowledge of investing and building businesses. 

Since Colorado is still floating in the higher price ranges, we would like to go to other states that offer an opportunity to buy cash or bigger down payments when financing. I was hoping other seasoned OOS investors can shed light and or tips/warnings on what to look for in investing into OOS. 

Some questions I have include:

How do you screen real estate agents in other states?

Do you use the 1% rule in evaluating whether to buy the property, or do you use a higher minimum percent?

Do you prefer to use financing in the other state and use a bigger down payment, so you could save cash reserves for more real estate deals?

If I choose to buy a house cash, is it still advisable to use a real estate agent?

Any comments on this subject will be greatly appreciated in determining our first steps into investing into out of state. Thank you all for your time in advance!

Knowledge, Planning, and Executing are the fundamentals of growth both as an individual and as a business.

The reason for this post is because there are a lot of discussions about what if's and whether or not we should prepare for the worst of times. However, like a lot of great investors out there, the worst of times for the majority is the best of times for the minority. 

During these times of isolation and social distancing, in light of current events, I have decided to invest more time and effort into learning about foreclosures. In my research, I have learned about "Subject To" in acquiring assets with both having a benefit to the seller and to the buyer. Subject To deals include taking over a property without being personally liable for the loan. 

The seller gets several benefits from this type of deal, one of which is having their loan caught up and saving them from going into full foreclosure and/or bankruptcy.

A benefit for the buyer is to acquire properties without having to go through the loan processes and obtain many rentals through this process. 

Although this "seems" to be a cut and dry deal there are many ways this could go wrong if a person is taking the necessary steps to execute this deal just right. Difficulties include finding a person that would be interested in this type of deal and the legal implications that are associated with a deal such as this one.

During my research, I learned you need to Do Your Do Diligence, especially in finding any liens against the property (which will need to be caught up as well to save from going to foreclosure). And also the documents that explicitly explain what the deal entails in black and white writing. 

The documents include "Authorization to Release information", "Seller Disclosure", "Power of attorney," and a document stating exactly how this deal will be structured.

Most of my research on this subject has been through Youtube by a guy named Kris Haskins if anyone is interested in seeing his content! 

I am curious to know how you have used this time to grow and educate yourself? What new types of Real Estate investing strategies have you started learning about? And what books, channels, podcasts, or networks have you learned this information from? 

Thank you both for your awesome feedback! I have given my friend and her husband the great suggestions, especially taking control of the situation. She was very appreciative for the advice and guidance!

My apologies for the late response, I am in the the retail grocery business, and we have been very busy since the pandemic.  

Hello BP,

One of my friend and her husband have a big dilemma. They own a rental property and have decided to sell the property in the next couple of months. They need time to get it ready to sell it but the renters refuse to leave. 

The 30 day notice has already been issued. However, they refuse to acknowledge it. 

After digging for more information on the issue, she proceeded to tell me that one of the tenants has prior evictions on their record and that they did it to just help them out. 

I told her about filing an official eviction with the courts to continue the legal process with evicting the tenants. 

I also suggested doing what ive done in the past, which is pay the tenant to leave and has worked for me the One time i had to do it. My fear is that they know how to "work the system", and find a way to screw them over even more. 

My questions are:

1) How long does the eviction process typically take if they go that route? 

2) What are the best ways to protect themselves if they try to pay them to leave, and have you had personal success with this route?

3) Should she ask how much it would take for them to leave, or low-ball it and then come up with some type of compromise? 

Thank you in advance for your replays!

Hello everyone,

I live in Colorado which has seen a huge influx of housing prices in the last several years. Fortunately I was able to buy my first property around 5 years ago and have developed a significant amount of equity. I have made the decision to sell my property in the next few months and I am at a crossroads. I have done a great deal of research into foreclosures and was thinking of using this money to turn the sale of one property into multiple foreclosure properties. However, I have also been entertaining the idea of possibly investing into out of state properties, such as a multi-family or even a small apartment complex.

My question is, what has been your experience with either investing into foreclosures and/or out of state investing? Pros and Cons for each?

The motivation for selling the house is to reinvest the money into more properties, become a better real estate investor, and of course obtain the holy grail of increasing my overall Cash Flow.

 Hello Daniel!

And yes they are both in Colorado. One i bought in 2015 and the other i bought in 2018. Ive been to a couple of real estate seminars but i have not found any RE groups to connect with just yet. But i would be highly interested in networking with any recommendation groups! 

@Anthony Hanks, thank you for the kinds words and its nice to meet you as well! 

@Andrew Syrios thank you i appreciate it! 

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