All Forum Posts by: Dakoda Spencer

@Michael Gayer Jr, no one has hopped in here yet, so I'll give you some resources that will show you what it is.

Net Operating Income (NOI) / Sales Price = Capitalization Rate

Here's a youtube video on it.

Here is a former post explaining it.

Here is a good blog on it.

Hope this helps!

-Dakoda

@Henry Montgomery III, Also, here is a link to a blog that would help explain house hacking.

https://www.biggerpockets.com/renewsblog/2013/11/02/hack-housing-get-paid-live-free/

-Dakoda

@Henry Montgomery III, I'm still starting out so I can't really answer your first question about what niche to go into, but I would say that really depends on your location (if you want to invest locally). 

I would like to address your question about what house hacking is. It's when you buy a residential multi-unit property, live in one of the units, and rent out the others. 

Let me be clear what is considered a "residential" multi-unit property. It's 2-4 units. Once you hit the 5 unit mark, it's a new ball game with a different set of rules. It's then considered "commercial". With a multi-unit residential property, you get much better interest rates. You can even use an FHA loan and put as low as 3.5% down for one (comes with an extra fee for mortgage insurance, though).

I haven't bought any properties, yet. I've just been learning a lot through different courses and here on BP. So, I'm not speaking from experience, just from what I have learned. I hope this helps!

I hope this helps!

-Dakoda

Hey @Chris Paxson! It's great to see someone from the area here on BP! I'm interested in rentals as well for the long term, but would prefer to start off my doing some flips. Hope to see you around and best of luck to you! 

-Dakoda

Hey, welcome to BP! This has been a great community and an invaluable resource to help learn about real estate. Just as @Aaron Howell said, the education tab has a lot of great info. I really liked the free course when I was getting started. I'm a very visual person, so I really like the video library! I have some free time while I'm at work, so I like to go over and read some of the blogs. 

I don't know if you have been thinking about it, but if you go "Pro", you can use their tools as much as you want. I know I personally have used their tools hundreds of times and have used them to show my friends and family some deals that I have found. 

If you do want to go Pro, wait until the next webinar (which Brandon puts on weekly). At the end of each webinar, they have some special offer for joining as a Pro member and some other perks usually. Also, if you are a pro member, you can view the past webinars whenever you want. 

I hope this helps!

-Dakoda

@Jeremy Hunter, thank you for the advice. I've been trying to network with people in the area, but there aren't many around me that understand RE. And the nearest REIA is about an hour away from me. Thanks for the input!

@Thomas S., I agree that it is a horrible idea to do a new build with a high interest rate, that's why I need to understand all my options. I've done some calling around and research and it would take about 7-10k to tear it down (it's a small house). I know I couldn't give them 50k for the property. I know the cost of the lot should go for about 20k in that neighborhood. 

How do people do new builds on lots that already have a house if they don't have the cash to do it? Is a bank loan my only option?

Hello @Joseph Rios, 

I'm in a similar situation. I would love to access to the MLS and the ability to go look at any of those houses when I choose, so I have been doing some research myself.

There are some great resources here on BP, and I will share some links to them at the end. I'll tell you what I know:

1. Do you need to be sponsored under a broker? Yes, you will need to be under a broker. After you get your license, you will have a certain period of time (I think 6 months) to "hang" your license under a broker. 

2. Do you need to be sponsored by a broker just to sell your own houses? Yes, even if it's your own properties.

3. Do you have to work full time? No. I don't think so. I have heard of a lot of people that are part time real estate agent while they are doing a different full time job. I plan on being part time myself. I have a job working on computers and I wouldn't be able to make it if I had to jump into being an agent full time. 

Have you done some research for what it takes to become an agent for your state? I live in WV so I'm sure it's not the same. For me, it takes 90 hours of class work (which I will be doing online, in my free time and will cost me about $500), I have to pass a test ($75 to take the test, I think), then I have to get under a broker. 

It depends on what broker you choose, but you will have to pay a certain amount to sign up with them, then you will have to pay a monthly fee, and I think you have to pay them each time you sell a house. I once heard a local agent say they pay $40/month for access to the MLS.

I'm going to be meeting with a local RE broker here Dec. 6'th to talk to them about me potentially joining their team. So, I'll be able to message you and give you more details. I just put a sticky note by my computer so that I can remember to message you and give you more info.

I'm still learning about all this as well, so I may be wrong on things. If I am, please someone correct me! 

I hope I helped! 

-Dakoda

PS. Some additional links:

Here's a guide that BP has to getting your license: Link

Here is a great blog on why to get your license: Link

Hello BP family,

I have a question. I have been going around and looking at houses in my areas. The numbers look great on them until I walk in and see all the structural issues. Instead of simply dismissing them completely, I want to know what I would need to do to tear them down and rebuild in the existing lots. 

If someone could please spell it out for me, I would really appreciate it. 

One of the houses I looked is an REO, asking 50K, would be worth about 140K with a 3/2 on it. It would cost about 80K-95k to build a house to match the neighborhood houses. I know I couldn't give asking price. But, how do I come up with my asking price for this place?

I am unclear as to what my financing options are for this type of project. Is a HML an option? I would just like to know all my options that aren't so obvious (eg. cash and private money).

Thanks all!

Dakoda

Hey @Zach Romashko, thank you for your advise! It's nice to be in a group where I'm with other investors in the same situation that I am in! It is fantastic to see others learning to tread the water as I do as well. If you didn't read my post above, I am looking into Google Voice to use within my direct mail marketing and I'm excited to see how it will benefit the entire process! 

I will be going through the blog post that you mentioned! Thank you for the insight! I'm sure you will be hearing from me later!

-Dakoda

Hey @Cole Swartz, thank you for the post. I really appreciate the details and really laying it out to me. 

I just spent some time researching "Google Voice" and how it can be used specifically for REI. I have heard about it before, but didn't realize how powerful it can be.

Do you have any specific advice about setting up Google Voice for direct mail marketing? For example, do you use different phone numbers when you are targeting different groups of motivated sellers? Do you set up different greetings for the different types of direct mail you send out? Do you have a virtual assistant (VA) that will go through and screen the leads to find motivated sellers? You may not have this type of situation, but is all this possible with Google Voice?

Thanks you for your time sir!

-Dakoda