All Forum Posts by: Jeremy Bear

  I can feel your frustration, I can see the hard position it puts you in but if Florida's building materials prices are anything like here in Oregon, a 15% isn't as horrible as I'd expect.

  Lumber over in Linn county is 5x what it used to cost. Some wire is 3x, and pvc is ridiculous. 

  To be clear I'm not saying 100% it isn't optimistic or underhanded in this specific situation as I don't know enough to make any judgment. My family's construction company though are struggling to make bids as whatever it is, it will be too low in a couple months.

  I sympathize with you as a fellow investor but sympathize with companies who'd be losing money to build on a bid based 4 months ago.

  If you don't need a lot of local branches a great bank is Charles Schwab. Their investor checking only requires you to open a brokerage (don't need to fund it).

  I like that there's no minimum balance, no fees at all, free checks mailed to you, and if you need cash you can withdraw from any atm and they'll refund the atm fee to your account so it's basically free.

  Nearly unlimited mobile check deposits (this has a hold period for accounts 30 days or newer) but afterwards has been flawless.

  Hope this is helpful, have a great one!

  I've only dipped my feet in with my first fourplex but it's something I really feel brings out the best in people.

  Sure there's bad tenants, bad contractors, and bad investors, but the whole system really incentives people to work together in an honest way.

  When a new project is bought, rehabed/built, and rented out. 

  It helps: of course the investor due to returns, the realtor/wholesalers get their work rewarded, the contractors get money for honest work, the property managers get to do their jobs and get rewarded for their hard work.

  On top of all this lenders private, hard-money, and banks all want to find good investors who will pay good interest on profitable projects. 

  Most of all though, the tenants get a great place to live at market prices, plus all the convenience of not having to upkeep their own home. The overall society at large is better off having more/better housing and even the nation itself becomes wealthier because of investment property.  

  I really love real estate and the benefits it offers to everyone involved, or even those uninvolved through property taxes and neighborhood appreciation.

  I'm entering the second stage of my investing trying to get into the Indianapolis market but I really want to say how much I appreciate you as members of this community. This has really helped a lot of people both investors and all those who have benefited from these projects.

  Hey Landon, I didn't see your reply till now. Locally there really isn't anything at all available. 

I'm in linn county oregon where there's honestly only a couple of multifamily available on market while i really haven't had any luck off market.

  With current housing prices, I believe it's still slightly cheaper to build rather than to buy here.

  With my first fourplex rental nearly finished construction and refinancing, I'm looking to possibly use a fha loan to finance building a second fourplex.

  I'd build it through the same company that did the first then purchase it after its completed with a fha low down-payment. The return wouldn't be exceptional but it would be paying down the principal with a little cashflow.

  I'd like to get other people's opinions but here's what I was thinking on pros and cons.

pros: low down-payment, high leverage effectively a hedge against inflation, use up unique fha loan slot, get a second rental, I can get capital gains by building/buying for 5% less than market value.

  cons: not great cashflow, if there's a market crash/correction I may end up oweing more than it's worth, will comsume all my time/money for 6 months minimum.

  Hi Douglas,

  If you haven't seen it already, a great book for people in high cost property states is "Long-Distance Real Estate Investing" by David Greene. 

  As property prices continue to rise to new highs here in Oregon's Willamette valley, I've been trying to take advantage of it through developing new properties but feel markets like Texas can give far better returns compared to the cost of the properties.

  One I've just started is not necessarily real estate exclusively but really has been helping me at least.  It's "The Bravest You" by Adam Kirk Smith. If you're naturally an introvert like me, it's sorta hard connecting with lots of people online and IRL even if you have something in common like real estate. Real estate though, I've found is extremely reliant on meeting as many people as you can and forming long term partnerships.  

  Whatever your fears happen to be, fear can be a major limiting factor keeping us all from obtaining our real estate and life goals. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $490,000
Cash invested: $75,000

Build to Rent, development then holding long term or atleast till I find suitable development projects or out of state rentals to replace it.

What made you interested in investing in this type of deal?

Wanting to build my first rental and had the opportunity to get a great deal on the land.

How did you find this deal and how did you negotiate it?

Done as my first deal learning to develop with my veteran developer brother in law.

How did you finance this deal?

During lot loan then construction loan was financed through private money lenders with my exit loan either being a conventional mortgage or perhaps a commercial loan through our business if possible.
The down payment was through my life savings that I'd been putting away for property investing.

How did you add value to the deal?

By buying land at a cheaper price I already had some equity, combined with being able to build for cheaper than it is to buy, I can get by with far lower initial down payment and earn equity through development.

What was the outcome?

We're going to be finishing construction within this month and it's going to be held for a long term rental for at least a couple years. With everything brand new maintenance should be ultra low for the initial decade or so.

Lessons learned? Challenges?

Learned a ton about new construction from a different perspective. I previously worked as a construction worker for 4 years but very glad to be approaching it from the investor perspective.
Definitely learned that some cities are far more accepting of new building while in my case the city took a long time to finally get through the whole process racking up more loan interest. Fortunately we got all the approvals squared away before getting the construction loan.