All Forum Posts by: Jason Young

I'm looking to get into the biz with as little initial cash outlay as possible.  I've located a 5 unit MF property with great overall numbers (on paper), and the listing indicates that owner financing is an option.  Understand that every deal is different, as is every owner, but curious if anyone has had experience with this type of financing.  I haven't engaged with the owner yet, and was hoping to gather some insight from BP first!

If I can lock in a 3 to 5 year term somewhere around 5-6% interest with a baloon at the end that would be great; That would give me more than enough time to build equity and save the remainder to lock in more traditional financing.  Any thoughts?

@Jeremy Tillotson Thanks for weighing in.  Many of the podcasts and forum posts support what you are saying, so I think it's good advice.  Try to create a win-win for both you and the seller by solving their problem and netting a solid investment.  What resource do you rely on to identify these distressed properties and the associated owners?

@Morry Eghbal good advice... just signed up with a local real estate group and am looking forward to the first meeting in the new year!

@Minka Sha @Troy Young Thanks for the insight... networking seems to be key, and having multiple options to identify the right team member seems to be the way to go.  I admire your courage, Troy... i'm finding myself a bit paralyzed by the need to "do my homework" and get a full team put together before doing my first deal.  

@Andrew Cordle Thanks for the detailed response.  Interesting that you have a wide breadth of contractors that you rely on, focusing on deep expertise in these areas rather than using general handy-man/contractor.  Could you elaborate on your second bullet around identifying leads?  Thoughts on locating these people?

@Michael Germinario Mike thanks for the insight here. Networking seems to be a recommended best practice. Do you use any other tools (like MLS), or sites like listsource to identify prospective deals? Access to MLS is definitely helpful, but I want to make sure that i'm not becoming overly reliant on that one source of data. Thanks again!

Much of the content that i've read about real estate investing makes mention of the need to build a solid team to help enable success.  How did you build a team to establish a solid real estate rehab/flip business?  

Every expert says that you make your money in real estate when you buy. What methods, tools (like MLS), etc. are out there to find these deals? Additionally, what processes do you recommend to qualify these "great" deals.

Thanks!

@Will Barnard What recommendation do you have with respect to accounting for cap ex items?  Leverage equity of the portfolio, establish a cash reserve funded by the cash flow of the portfolio, or some combination of the two?

Just getting started and trying to get my business model established.  Thanks in advance!

@Joe Villeneuve General question on how you are qualifying properties for your model. Does a bank, or other lending entity, value multi-family dwellings (4 units or less) similar to how they value SFH? In other words, is the appraisal for these types of units based almost purely on comps (similar to how SFH are valued)?

As an investor, i'm worried about CoC, NOI, Cap Rate, etc.... but for your model to work (in my mind), I will need to identify properties (SFH or Multi-families) that are below market value, or properties that I can force appreciation on with some rehab so that I can refinance the initial cash out... rinse and repeat.

 What are some of the methods you use to retrieve your initial cash investment in the first year?  Deals that have the kind of cash flow that can enable you to retrieve your 20% must be hard to come by... are you making improvements to refi the cash out?