All Forum Posts by: Evan Wiesner

@Carter Doering I’ll send you a private message.

 Many years ago I lived in Ft Collins and fell in love with it. However, I've only executed 2-3 deals in that area (Ft Collins/Loveland) and they were 6 or 7 years ago. 

Des Moine has always been a target but under the structure of the funds I worked for in the past I needed a good local operator. We were never able to find one that fit our criteria. However, every time I've done a market comparison using mass data it's been rated very highly. Call it a bit of a fantasy, but when I speak with others in my space in the industry those who have put the time in there have done very well.

Cincinnati has been great to me. I did a dozen deals last year for a fund I was working for. Like any market there are nuances to it and as is usually the case, everyone local has their biases. A good local contact in any market can make it move for an out of state investor and Cinci has certainly produced. 

Everything I've done nationally has been for investment funds, and all flipping. Nothing personal. That may skew the way some see my responses but I've never operated with the level of capital of a true hedge fund. More than most, but still very averse to mistakes so I've needed to be careful. Hope that answers your question. Always willing to discuss more in depth if it doesn't. 

@Aaron Nelson it's great in theory to try to get all your money back out, but don't sacrifice a great situation to do it. To me, on the surface, with just the info you provided, I would buy both now and hold them. If you're dead set on building a full portfolio I have a feeling in the long run you'll make up for lost time with the equity from property A and using property B to help you will really make it feel like a win-win down the road.

Don't forget to calculate in the tax ramifications depending on how you're executing the sale of B. If you get hit with a capital gain tax on it then you're not doing as much for property A as you think you are.

Can you not buy both at the same time? Personally, if property A is in a more desirable area then I'm less concerned about the cash flow if I'm going to hold it. Over time the appreciation and a modest rent increase of say 3%/year is going to help you keep good tenants and really build up the equity.

If your primary concern is cash flow, and not long term appreciation gain, then property B is probably a better option as it starts you out on the right foot towards that goal.

And finally, if you really want to build a portfolio and have the means to do it.... I would buy both now. Property A will build up equity faster and you'll be able to use that equity to fund future purchases in the portfolio. Property B will add the cash flow element that will help you offset Capex expenses in the future. They sound like a good combination to get you rolling if you can pull them both off.

@Crystal Fogg absolutely, unless you're very experienced. work hard to find a good one and form a strong relationship. One that caters to investors and knows what an investors needs are can be huge for resolving issues that come up along the way. Ask them about the trades they may have someone for and who knows, maybe you'll end up forming a small team that can really help get things done for you as your successes grow.

Something to consider.... almost all cell tower agreements can be canceled by the company leasing it with 60 days notice. Every really successful investor of these towers evaluates the property independently. They don't all tell me that the property has to make money on its own, but they all understand the risk.

Location, improvements by the company, and need are just some things you need to evaluate if you're going to have any reasonable expectation that the company will keep that lease. They are extremely unilateral leases so please be careful.

Honestly, if you're getting beat to properties, whether by newbies or experienced investors, take it as an opportunity to analyze what they are doing and see if you can improve what you are. 

After a decade of buying at trustee sales around the country I can honestly say that losing an auction is still frustrating, but there's something that I've always kept in mind and you should too. My model, my finances, my needs, are different than everyone elses. So when I win, they think I'm crazy and when they win, I think the same of them.

Is that logical, no, but if it's working for them when they win then they are doing it right. And the same goes for me. It's not a level playing field and some people have inroads you might not. Buy and hold investors SHOULD beat out flip investors, and sometimes they can pay over ARV because of the rental returns. Add in that large funds sometimes need to buy more than they can at optimal returns, and they might play the appreciation game on either value or rent.

I chalk it up to variables, and for some reason it sounds like yours are getting beat at the moment. Big movements take big changes, might be time to look at it from that perspective.

Form an LLC.... cheap, fast, and if done right provides some protection. Spouse doesn't have to be associated at all. Speak to an attorney to get your goals accomplished before you offer on the property.

@Mike Huerta you've gotten a lot of good advice here. I want to add one little bit..... you can check the NRBA website for realtors who have been listing REO properties and belong to their network if you're exploring a new market OOS. To clarify, this is FAR from a perfect formula as obviously it is a pay to get in organization and the agents are primarily focused on listings. However, and here are the positives....

1) they tend to be more skilled at helping you find contractors

2) they are used to working with OOS partners which is a unique communication and follow up skill set in the industry

3) they often know where the investment activity in any market is and is heading which can help you identify deals.

Now, they often aren't great buyers agents BUT they often also have teams because of their volume. Find the hungry young agent working in a team for an NRBA member and you may find a person willing to work their tail off to help you who has a wealth of help and knowledge at their disposal.

@Polly Feeney yes, it's not cheap here. Everything is magnified when compared to the rest of the country. The funds I've worked for have almost completely ignored this area because your dollar is stretched so much further elsewhere.