All Forum Posts by: Tyler Weaver

I once bought a move in ready house for myself with one exterior photo and a description "needs updating, price reflects this" or similar.  It was a mid century modern home in great condition, and really needed very little, that my Realtor knew was a street with a bunch of swanky custom homes way overbuilt back in the day.. It had a 700sqft vaulted mahogany ceiling... 

I think the answer is you can get better at analyzing these deals fast by getting experience analyzing them slow.  Figuring out what they need, what homes in that neighborhood normally need, what their arvs are etc.  Then you can get good at ok this is similar to the property I looked at 3 months ago, but it also needs HVAC, so it is worth X today.

I have not heard of that program. No idea if it is worth 12k.  Found them on FB and maybe they are legit, idk.  If you are looking to get into multi-family then NO that is not for you.  There are multi-family conferences that might be better learning for you.

Something like this: https://besteverconference.com/

https://jakeandgino.mykajabi.com/store/Dn9KmFBd

I have not been to either of those conferences either, but at least it is in the multi family industry.  

Try networking at your local meetups, see if you can talk to anyone who has done what you are looking to do, and learn from them.

Two issues.  Is the inspector liable for damages?  Then, how to get this resolved to get the deal to progress. 

I am not familiar with NJ regulation of oil tanks, but here is a breakdown of how the bid should go.  $800 excavator and operator, $400 oil "disposal" (likely involving them reselling at a profit).  Cleanup of contaminated soil could be more, but is fairly rare.  For residential there is no certification process to be adhered to to guarantee the soil is not contaminated.  I am not sure what NJ laws are.  

Now that it is identified, can you determine how much fluid is in there? I would call every oil removal service in the area to get it pumped, the quotes in my area varied over 1000%.  The same with the tank removal, the quotes were between $1,000 and $10,000.  Basically the large commercial companies do not want to deal with it.  There was only one or two companies that did this sort of work on residential tanks and their prices reflected that it was not a giant tank in the ground running a shell station. 

Sounds like you have found something you are good at with the flip.  I would focus on repeating that effort. 

52k in 1031, I would not have done that, but now that it is done. Maybe I would invest in a small value add apartment, hold it and sell it after it is stabilized.  Or pay the penalties and use it to continue flipping until there is something closer to 300k to invest in a multi.

That is sad that the coaching was garbage.  This is a fairly straightforward industry where a product could be made to give its customers a blueprint to success.  The thing that makes it difficult out there is not all programs are BS, not all conferences are a waste of time, etc.  It is hard figuring out what is worth the time and money, and what is a waste.

I recommend @Joe Fairless's meetup. It is your best bet to find other like minded BRRRR investors. Here is more info: https://www.eventbrite.com/e/cincinnatis-real-esta...

Though I have not invested in Norwood, I have purchased close to 20 properties in Madisonville and PR in the past 2 years mostly for flipping but a few buy and holds. Those are great neighborhoods imho.  

I would recommend you look into either SFR's or quads or larger. The duplex's and Tri's in my opinion do not cashflow as well, have weird valuation histories, and mostly trade to owner occupants where 4 families go to investors and sfr's can be exited to homeowners.

Welcome to the board and if you want to get coffee sometime I am open to that.

Dead equity. It is not doing anything for you. Sure is a liability, but life is full of liabilities.  I like to think you should not allow it to overwhelm your finances.  If it does, sell it and rent somewhere.  A Heloc is likely a good practical move to get access to the equity.

One interesting thing I have noticed when I have a property listed too high is that it still gets a lot of interest from flakey people.  The kind of people that literally contact everyone out of desperation.  Bringing up the requirements early is important, then confirming on the day of the showing. 

It gives a false sense of demand, but it gets easier to identify that vs qualified tenants with experience in your market.  

Buyers that are getting debt from Freddie and Fannie at great rates.  If the cap rate is higher than the apr, there is positive leverage. 

If you are confident the property will trade at 4-5 cap in the future, there is way more opportunity if you can decrease costs or increase revenue.  When in a market with job growth and inventory that is expensive to add to, it creates a good opportunity for rent growth.  These are typically the markets that are seeing 4-5 cap.

If you increase noi by 100k a year at 4 cap, you have created 2.5Mil of value.  If it is a 10 cap, you have only increased the value by 1Mil.  Created more value while sitting on a more attractive, likely more liquid, less risky asset.  

@Paul C Mead @Slocomb Reed is a Realtor in Cincinnati with experience helping out of town investors with multifamily.  He helped Brandon Turner with his purchase in Cincinnati.

Risk with 10 year treasury is with inflation. Will the spending power be reduced by 30% at the end of 10 years, or 100% which has happened in modern US History.  

The only value I see in holding such a security for personal finance is that it can be collateralized or used to show a strong balance sheet.  Might have value when running out the shot clock, but that isn't something I spend much thought on.