All Forum Posts by: Jeff Schemmel

@Adam Widder can help!

that's a beautiful home, and what an awesome house hack.  How did you find tenants to share the common space?  getting along with 3 others a hassle at all?  Beyond the paint I can see in the photos, what other rehabs did you do? 

Very cool to see such a good deal for a first house hack, nice work.

read the book "the millionaire real estate agent' by Dave Jenks and Gary Keller, there's a whole chapter or more dedicated to this very topic but the whole book helps you get a foothold as you start your business.  A big part of being a realtor is ALWAYS prospecting and having a business plan for prospecting built on math; finding homes and closing are necessary but easier and less time-consuming in contrast.  I read every day now, and it's helped me immensely.  It's not about pressuring the people you know for a transaction, you're not going to convince someone to sell or buy. ever.  You focus on a few key prospecting strategies that fit your niche and you stay consistent.  everyday timeblocking for calling, following-up, providing value, and connecting.  You could use online forums, social media, cold calling lists of expireds, running meetups, etc.  there are a million creative ways to let people know what business you're in.  you'd be surprised at how effective just telling everyone what you're doing is.

Start with this (and the book talks through this) "How much do you want to make?"  how does that break down into # closings at the median home price, and how does that break down further into # clients you need to close that many times and how many appointments you need to get that many clients in the first place.  It all boils down to appointments.  If you're not getting appointments, you're not getting clients.  if you're not getting clients, you're not closing.  If you're not closing you know what happens...  It's all math from my point of view.  Aside from this, if you're not following or watching Tom Ferry videos on youtube you should do that asap!  Use that for encouragement! :)

@Alex James Sindelar before you talk to a lawyer or anyone for formal advice, I have one question for you; maybe you've already thought about it, but "does your brother or his wife want to be a landlord?"  Since you're not there, they have to be, OR you have to buy a good enough deal to pay someone else to be a PM.  This is a big deal, and it's not just about being handy and fixing things (although that is a great perk! :D and I rely on my brothers who are plumbers and equipment operators all the time).  You have to trust them to be prepared and react appropriately if a tenant says "hey...I can't make rent this month", or if a tenant moves someone else in who's not on the lease how they handle it, etc, etc.

Tenant management and communication are a big part of investing, and as a landlord who self-manages just one property right now it's quite the learning experience and I think every new landlord should do it at least once; at least so they know how to hire a good PM one day.  I'd say if you go for this, start small, and make sure you have multiple exit strategies, including being able to buy each other out if it goes south.  As far as forming a real estate partnership I'd be happy to share a few legal connections here in MN you could meet with if you'd like, just shoot me a PM.  When I partner with someone out of state to help them find a deal I'm going and shooting video everywhere I go, I recommend working with a realtor that knows MFH, and will walk you through each property and provide commentary and video on the properties that fit your goals.  good luck, Alex.

I agree with @John Mendez Definitely a time to speak with your broker about what you want to do to see if they are OK with it or if they have conditions you need to operate under.

@Josh Hoeft I second what @Tim Swierczek said and I recommend checking in with Richard Ochoa.  I was in one of his projects a week or so ago and it's incredible how he's negotiated and planned these deals.  He has them rented before they're finished.  

Welcome Tom!  You have great things ahead, and it's great that you're bringing some energy to the table.  House hacking is a great way to start and learn the business at a manageable pace and take a little less risk.  I've started small like this and I currently house hack in st. Paul with my fiancee' and we've begun to think about our next property.  I have plenty of stories to tell, and I've also helped a number of people house hack like this.  I'm always up for a chat if you'd like some recommendations or you want to ask me anything about my experiences.  There are a lot of ways you can house hack, and one of the first things I always recommend is to think about what way is right for you.  Are you an aggressive "curtain-off the dining room as your bedroom" and rent all bedrooms kind of house hacker, or are you a "I need a dividing wall between me and tenants" kind of house hacker?  Some people don't really vibe with sharing common areas and they need that personal space, and others thrive on always being around people and they don't mind sharing their snacks, so-to-speak.  Good luck, sir!

Hey @Danny Curtis welcome!  I'm a big believer in house hacking for first-time investor-landlords and I house hack in St. Paul.  Great way to learn and break the ice.  Getting started with a lender and agent is probably the logical next step, however, walking into a MFH property and seeing it, talking with tenants, digging through the details of a property makes it real.  It's great that you've got your analysis on lock, I always recommend seeing properties of various conditions and neighborhoods so you can help establish where your sweet spot or greatest value lies.  Shoot me a DM or email/text if you want to chat about my experiences over coffee, otherwise hit up some lenders and see what they have to say about strategizing your first purchase :)  Good luck!

What a project.  Are you working on this one full-time?  I'm curious about the holding/reno period and the holding cost assumptions.  I have a lot to learn about commercial and mixed-use.  Looks like you have a lot of flexibility, how did you decide what bed/bath unit combinations you'd go with for the space to optimize the highest and best use?  I assume this is in Saint Paul, can't quite read the sign, but glad to see someone taking action with these buildings - the city needs some revitalizing.  I'm with @Tim Swierczek would love to see it.

@Noah Jacobson house hacking is a great way to start.  Get to know homeownership, landlording, and learn how to manage your home while living in it - you get a bit more flexibility here and it's a little easier for most to swallow the risk if you're feeling like it's a big leap.  Also, you seem like the type to trust the numbers.  I recommend setting up your own rental analysis calculator so the numbers are YOUR numbers, and you're intimately familiar with them.  I invest and house hack in STP, and there are many of us here happy to share our deal analysis techniques, what we've learned, tips and recommendations.  @Tim Swierczek is a phenomenal lender and can give you a solid strategic perspective on what options you may have as a buyer.  Forming relationships with good lenders is something I always recommend to a buyer before they start looking.  A great lender will set you up long-term and look strategically at your first purchases and your financial situation and make recommendations to set you up long-term, not just the first transaction.  I highly recommend partnering with lenders, agents, CPAs, Attorney's who are investors or have a long track record investing so they can give you the perspective you need.  Lastly, regarding feeling like you need a perfect deal, I don't think you do.  The most important thing is to get in and start learning.  Trust your numbers, but perfection isn't required - and the best thing I could say here is "every day you're not investing, is a day you're not gaining appreciation,  cost of living reduction, and experience in the business." - good luck, reach out anytime!