All Forum Posts by: Jedd Braunwarth

@Tyler Smiarowski Awesome! Would love to see one of your flips sometime. I am in Cedar Rapids a couple of times a month for work.

@Nick B. I have never seen something like this! Do you know where these expenses are going? Is this just this years expenses or did they provide previous years? The only thing I could think was if they had some major maintenance items that they took care of which crushed any margins for the year. You sure the current NOI isn't a mistake and it should actually be $28k?

Crazy! keep us posted on what you find out.

@Joel Armstrong I think there are too many questions here to answer for sure. To start what are your goals? Do you want to flip or buy and hold? Decide that then move to the next step. If you want to flip this you will want to see if it is below comps in the area and see how much margin there is to make money. If you want to buy and hold what is the rent rates for the area? Start with Craigslist and Rentometer.com. If rent rates are good then figure your piti, maintenance costs, etc.

By the way, I like Stillwater. Nice area!

@Landon Elscott we need to talk!!! I have been looking at a few potential opportunities in Newton but have been hesitant only since I don't know much about the dynamics of Newton.

Also, I should have an official investor group established within the next month or so. I have been working on this to set this up for the past few months with a Keller Williams broker and also a loan office/drake landlord. A Facebook page is in the works! I'll throw you on the list and give you a shout when it is ready. We are planning on making it all free other than if/when we would have an event that we would need to rent space, food, etc. and that charge an event fee but that is much further down the road.

@Amanda Hoening what are you looking to cash flow on a duplex? I may have a couple of good leads for you. I am not a wholesaler but if you can let me know your criteria I can put you in touch with a guy that I have been working with that is looking to sell some or all of his 35 property portfolio. A couple are duplexes and one tri-plex. The tri is very appealing to me but I have purchased 2 duplexes this year and think I need to hold off.

@Marcus Curtis is that the "field of dreams" for RE investing? I am from Minneapolis and would love to invest there but stay in Iowa as rent rates are the same as up there but properties are $50k-$100k less here. My CCR is SOOO much better in Des Moines!

@Gavin Welch thanks for the response. Love that idea of rolling the down payment into monthly installments. This is exactly the creative look I was hoping to get by posting this!

@Craig Shute thanks for the response. I didn't think taking the money out would be taxable if I just rolled it over to purchase more property however I have never done anything with seller financing so really just did not know if that would change anything from a legal standpoint. I was hoping not... I was kind of leaning going with bank financing but thought I would ask others who have possibly done creative financing and may see an opportunity that I do not.

My 3 properties have all been done via banks or credit unions thus far. I am well versed in that but trying to learn and explore creative financing to grow the biz.

Alright, fun question but also very real! Say I have a property with $150k of equity that I am looking to pull out some or all of that equity to re-invest. I am currently talking to a full time RE investor that has 35 properties (and apartments) in which he would be willing to either do seller financing to me (details on points need to be worked out, hoping for 10-15% down @ 6%) or he has a great relationship with a local bank that he would introduce me to (roughly 20% down @4.6%). Say the 35 properties average in price from $125-$180k. I am not trying to buy all 35 properties but would love to pick the best of the best (cash flow, appreciation, location, etc.) and pick up as many as possible with the equity I pull out.

What method would you use to refinance to take that equity out?

Would I get hit with taxes on that equity if I did seller financing?

Would you try to go seller financing or work with the bank?

How would you make this money go the furthest and make the most deals?

@Cody Brinkman I am in a similar situation, although the student loans are my wife's. She has a mountain of student debt but I am just doing the standard payments each month and choosing to invest in real estate (2 duplexes now). I will continue to invest in real estate instead of trying to pay of the student loans faster.

I look at it like others have said that I can get better returns in RE than paying off the student debt. Plus, eventually I will be able to use the extra cash flow from RE to pay off loans and debt in the future. This would be extra cash flow that I would not have in a few years if I am working on only paying down student loans.

@Account Closed as others said, if be interested too. Are you a wholesaler? Know if any distressed commercial properties or apartments in Des Moines too? Maybe we could grab coffee sometime.