All Forum Posts by: Jared Baker

Hi Sean,

When I look for properties the amount of cash needed for a rehab I consider as part of the money I need as a whole.  Cash doesn't need to come from me personally, but needs to be available to me.  If the deal makes sense using hard money(or any other source with the extra interest from it) then it shouldn't matter where it comes from.  A few options you have though would be doing a 203k where the lender gives a loan for the purchase and rehab cost, but you need to meet specific requirements for that.  Another option that comes to mind is a private loan from friends or family.  You could get this money at a lower interest than what a hard money lender would charge.

Hi Amanda,

Both sound like good options. If you are able to leverage through a refinance you would probably be able to grow your portfolio quicker. To be clear, just because your refinance and can pull some money out doesn't really make a difference for your next deal, you should not overpay for a bad deal. If you have the cash available for a BRRR then refinancing should give you more funds for the next project

Hi Sandy,

Hopefully others can share there feedback as well.

When I bought my first place I did not have near as much money available as you do, as a result I did 20% down and was house hacking. My second property I did the same thing, but shortly after kicked myself after doing some more number crunching. As they say, borrowing money is cheap! On my second property (SFH) I should have only done 3.5% down and lived there while I fixed it. The difference would have been only $18 for the PMI a month and I could have keep more of my money available for the rehab or my next property. That being said, it is a preference. Rents should be paying down a loan anyways so if you leverage your current amount you can scale quickly, but buying in cash will provide more cash flow, but you will not be able to leverage as much.

Hi David,

Sometimes owners don't want to respond.  I'm definitely not an expert but I have reached out to several owners of very rough properties to see if they would be interested in selling, but I have not received any response either.  I would suggest to do a follow up if your really interested in the property every 4-8 weeks.  Eventually you should get a response of either you have the wrong number, they are not interested in selling, or you catch them at the right time and can make a deal.

Good Luck!

After I posted that I thought it might be different, but in any case I think with the rebates you still have to enter your receipts online.  Wouldn't hurt to enter them anyway and see what they come back with.  

Welcome Evan!  Its difficult for anyone to answer this question for you, but I think the question to ask is what is your goal?  I'm not quite sure what you mean by break-even since that could be calculated with either you living there or not living there.  If your goal with investing is to help offset expenses a break even with you living there would be fine, you are able to live there by reducing your living expense.  On the other hand if you are wanting to create a portfolio to build wealth then it might be better to invest somewhere else.  All depends on your goals and what you are trying to get out of it.  Both have their benefits and drawbacks.  

Welcome Keena!  Your best bet is to first start educating yourself.  Listen to the podcasts, read the books and start researching your market.  Honestly everyone is willing to help but you gotta put in the work.  I've asked questions to my local FB group and on here which helped me buy my first property.  Once you've got some experience under your belt I think you'll be able to better find that mentor to quickly help you grow.  I have one triplex now and looking to network locally and hopefully grow my portfolio, but again the experience that I have now should help provide some creditation when asking to partner or mentor.  Best of luck!

I'm not sure if its different in different areas but I purchased a stove and fridge from home depot up in West Bend, WI for a rental.  There is a list of all the sku's that are exempt, but I did get it for one of them, I don't recall which one, but I just went online, entered the receipt and waited for the email to see what would happen.  

I am currently in the process of getting my 2 units in my triplex ready to rent, I want to start to look for my next property. My plan is to either flip or BRRRR 2 properties (or more) this year to help grow my cash reserves to be able to work towards the ability to purchase with cash or afford down payments on larger multifamily properties.

To look for my next property I am thinking of purchasing two lists from several counties. List 1 will be delinquent taxes and the second list would notice of defaults. I could then review the properties and send letters to the ones that fit my criteria the best. The idea of course being at least 2 people would call back and we would be able to work out a deal.

If anyone wants to share their thoughts on my plan for looking for my next property or if you have a better idea for someone that is newer to the investing that would be appreciated.

Hello BP.  Wondering if anyone has recommendations for a mastermind group to join.  I bought my first triplex to fix and rent out last year and am still in the process of getting if fixed up.  I am eager to hopefully learn some tips and tricks but also quickly build my rental portfolio.  I've heard that being part of a mastermind and quickly accelerate you forward but you need to be part of the right group.

Any thoughts appreciated.

If you're the smartest person in the room, you're in the wrong room.