All Forum Posts by: Derek Clifford

Also following this thread. Perhaps @Sterling White may have some suggestions here?

@Steven Dragmen - Thank you sir, I will send you a PM shortly!

@Hallie Wasserman - I will also reach out to you here in bit - thank you for reaching out!

Hello BP,

I'm an active Midwest RE investor who purchased 16 units in Indianapolis in the last year and a half but looking to expand into a new market and have selected Cleveland for the long-term potential of the city for buy & holds in certain areas of town. My associates and I already have 1-2 units there each, but am looking to expand our holdings and scale up into multiple 2-4 units and into Euclid for high-value SFH's.

Are you a local investor, property manager, contractor, or lender? My 3 investor friends and I would love to meet you and talk real estate over breakfast, lunch, dinner or in your office.

We always look to add value to you as well if you are willing to connect. Thanks and looking forward to meeting you out there!

Hi Gentlemen,

@John Koster, @Kyle Lewis, @Joel Fine, I'd be interested in this as well if you're willing to share. I will go ahead and PM you guys - I'm going to be heading out to Cleveland in a few weeks and want to get some conversations going.

Thank you in advance!

I consider turnkey rental properties as training wheels. You never hear about the most successful investors out there buying turnkeys, but rather, owning companies that sell them.

On the other hand, it helps you understand the process of buying, analyzing, and managing a property and property manager. I'd consider doing it purely for what you'd LEARN from it, now how much you'd profit - that comes later as long as you don't make a very bad buy (less than 1% rule). Warren Buffet says that "the only investment that NEVER goes down in value is knowledge."

You want to make sure you keep your motivation up and move the needle a little bit in the positive direction, and a turnkey could nudge you and motivate you to do something yourself once you start understanding how much you're paying for the convenience. It will also provide a benchmark for you for what a "successful" rental should "feel" like.

Hello BP Community! Seeking your advice on finding small multi's for a 1031 exchange I'm in the middle of now.

I have about $75,000 in cash in my 1031 left to spend which I intend to lever into about $300,000 worth of property (with 25% down). I am having a hard time finding 9-cap or higher small multi-family (2 - 4 unit) properties that would work well in a buy-and-hold scenario within my markets (Indy and Cleveland).

We have been contacting agents and wholesalers, but not getting good enough numbers on the leads/listings we have. Should I back off trying to find rent-ready multi's and focus on more rehab-heavy jobs? I avoided this approach up until now because I wanted to avoid using hard money and get right into a FM / FM mortgage from the start.

Any thoughts out there? Should I start looking for these rehab deals? Should I look to move to a different market? Something else I'm missing?

Thanks everyone!

I was stuck in your situation exactly 2 years ago and know exactly what that's like. My advice is to start talking to some people in local REIA's as much as you can and leverage those people's systems and boots-on-the-ground teams. Property management is massively important for what we do in buying rentals out of state. For me it boils down to four things when selecting a market for turnkeys / passive investing: 1.) Purchase Prices 2.) Cap Rates / Average Rents 3.) Property Management 4.) Local Economic Health and Outlook. One more thing to consider (but should not necessarily drive your market choice completely) - do you have family or friends in any of the markets you are considering? It would be really nice to write off all the trips you take to visit them.

All,

It's sad to read some posts on here that suggest Swanny is trying to sell or mislead others.

Really though, what would be his motive if this was the case? He is already financially independent and doesn't want outside investors. I do encourage you all out there to get on the phone with him once and understand that he is simply trying to share experiences to empower you to do the same. He is very enthusiastic about investing, and simply wants others to learn from his experiences, which shows through in his posts and much more so when you chat with him.

I've been talking to him over the last few months (I own a hand full of SFH's out of state - getting up to my 10) after reaching out to him from his BP posts and finding out about him from a fellow CA out-of-state investor. The resources and encouragement he's given me and others is a priceless gift that many other successful investors just can't or won't do. Adding Multifamily to my portfolio will be my next step, even if it's not with where he got his mentoring from (LU).

It's up to you, dear reader, to keep an open mind and take what resonates with you to your advantage and investigate further. Learning never stops for investors. His advice is gold if you want a fresh perspective on Multis. Never stop doing what you do Swanny! Looking forward to your podcast this coming week!

@Ruth Bayang, @Debra Batterson. @Adrian Chu,

Thank you for reaching out! We will be in touch with you today!

- Derek

Hello B.P.! My wife and I are looking to sell our rental property in Kirkland, WA right across from Bastyr University. Are there any agents out there who would be willing to help us get top dollar for our property?

We live in California so would need a bit of help in doing a minor rehab/turnover before selling (carpet, paint, counter tops) in order to get maximum value from the property. We'll also be visiting this coming weekend and would like to meet face-to-face if schedule allows.