All Forum Posts by: Javier Beltran

@Karl McGarvey Hey man! My wife and I were in a somewhat similar spot as you and and your wife. Starting off, we saw two options (one was riskier than the other). The first one, the one we ended up going with, was essentially buying a turnkey property. It was a 4br 2b SFH that had undergone major renovations in a good neighborhood. Yes, we missed out on buying a distressed property and accruing more short-term capital by adding value, but we didn't have a solid core team and my wife at the time was still a little skeptical on the whole REI thing - so this was way better than not starting at all. Our lender gave us a pretty good loan with decent terms including 3% down on a conventional loan (so not FHA actually). The numbers still made sense so we went for it!

The other option is to BRRRR a property. Now that we have taken the initial leap and have at least half of our core team, our goal is to put together the rest of our team and begin BRRRRing properties within 10 months of our first purchase. Because you're able to recycle most (ideally all) of the initial capital put into these deals, adding several properties during a short span is a lot more feasible. Obviously, this is the riskier option. Right now, we're trying to absorb as much info as possible about how to successfully do a BRRRR as well as putting together a good team.

And to encourage you, we started off with a heck of a lot less capital than you guys! We both just recently started careers and so didn't have too much in the bank. Luckily, we have very little debt and so are able to save a substantial amount of cash for properties every month. Once you've done your due diligence, you guys will be more than ready to start. Best of luck!!

With regards to pursuing a private or hard money lender, I'm essentially asking about pursuing a BRRRR property. I want to make sure that this isn't overly ambitious!

Hey all! Just wanted to touch base with everyone who commented and gave advice to my initial post and give everyone an update on what ended up happening. So my wife and I decided to take the leap head on and buy our first property that will act as our primary residence for a year! It's a single-family home that we were able to acquire for 3% down. According to the numbers, it will cash flow (barely lol) but really I'm just excited that I'm STARTING! The plan is still to move out to Colorado, although in summer of 2020 instead of early 2020, and have another property purchased here in the area before we leave (so two total out-of-state properties).

At the rate that we are able to save, we will have 20% for a 100-120K property in a little under a year. I have no problem saving up for the next property and investing it then, however, I was curious as to whether or not you guys had any recommendations as to what I could do to potentially land more than one deal before I leave. For example, for a person in my shoes who is just starting out in REI who makes decent income with little outstanding debt - would you guys recommend pursuing a private or hard money lender? Or since I'm starting out, should I just stick to my own guns and save up my own money?

My main goal throughout the next year is to have a team set in place to manage, find, and fund future properties from out of state. Aside from that, do you guys have any tips for any essential things I should also be doing until then? Thanks in advance!!!

@Bill S. In my naivete, I just assumed a loan like that would work on a wholesale property but shortly after I posted I looked into it some more and it unfortunately turns out that you're right! The don't-wait-and-do-it-now in me hates this, but you bring up some great points to wait and rather build equity to refi down the road..

@Account Closed Lincoln, NE is definitely a college town and that coupled with a decent market makes here not a bad place to invest. I would absolutely hire a property manager to look after my property when I move. I think so much of my decision, not just for this one investment but rather any future investing in LIncoln, ultimately rests on how good of a team I can assemble before I leave. Which means I need to start looking NOW as my lease renewal is coming up in a few months!

Thanks for all the responses, guys! 

I have a lot to sift through. I am still considering buying here in Lincoln before my wife and I take off to CO mainly IF we can find a below-market wholesale property that we can put ~5% down on a conventional loan and that has monthly expenses (including repairs) that would ultimately be less than what we are currently paying for our apartment. That way, we are still saving capital for our next property (our home in CO that will eventually become a rental property) while building equity. And then, rent it out.

This might be a rather stringent set of criteria, but I really want to start off RE investing on a great note (especially since my wife isn't fully on board yet). Having said that, if I can't find a deal that meets what I mentioned above, we will likely just renew our lease and continue saving capital to invest in Fort Collins and/or surrounding areas. 

I'm only about 3 months into really learning about REI, so please don't be afraid to call this out if it's a horrible plan!

@Natalie Schanne Our lease on our apartment is up in June. So let's say I choose not to invest in Lincoln and instead save up to buy a fixer-upper to later rent out in Colorado (Fort Collins area, specifically) when we move there in early 2020. Throughout that half year stretch while I'm still in Lincoln, do you think it'd be wisest to just continue renting? I know it would be the option with the lowest risk involved, but by June we will have a decent chunk in our reserves as initial capital for a property and, to be honest, am rather anxious to start sooner rather than later! What course of action do you recommend while we are still in Nebraska?

@Tanner Crawley We will be in the Fort Collins market north of Denver. Greeley seems to be the best choice to invest around that general area so if I decide to wait, save up, and invest when I'm Colorado, I think I will probably look around there or see how creative I can get in Fort Collins.

@Natalie Schanne Thanks for the response! 

So one of the biggest reasons why I've been wary of investing at our next location, Colorado, is because the market we will be in there is currently insanely expensive and very difficult to find a great deal - at least for someone new like me with no connections there yet. Our market here in Nebraska, however, is a different story and great deals can surely be sought out. I was originally planning on buying my first property here alongside with building a good team and then continually keep adding properties from out-of-state over the years. I figured since I know this area/market as well as have many connections here and did my due diligience in prepation, I could make this work. Do you still think I should save up and invest in Colorado, then?

Hey all! My wife and I are new into the real estate investing business but are in a good spot to begin. Our goal is to buy our first property (ideally a live-in flip) in June 2019 in Lincoln, NE. By June, we will have saved up enough to put down 20% on a modest single-family home. The big wrench in our plans is a move to Colorado beginning in early 2020 which means we would live in the property for a little over a half year which would be plenty of time for a proper rehab as well as time to assemble a good team (because we plan on continuning to invest In Lincoln even after we leave) including a property manager. Then, once we are ready to move, rent it out and have it as an out-of-state property. 

Do you guys think this is a wise move? If not, what complications do you think could arise that could make this a disaster? Overall pros and cons?

Like I said, this will be our first investment so I'm sure not everything will be perfect but I'm willing to try my best to minimize any problem that could potentially arise. Any other tips and advice regarding my situation would be greatly appreciated! Thank you!