All Forum Posts by: John Barrett

@Nathan Conant The answer to this question will be very dependent on the flipper or buy & hold investor you are working with.  We all have different risk / return requirements and metrics that we are looking at to determine if a property is right for our portfolio.  This is why people generally suggest you start by finding a deal.

I would suggest by networking and gathering information about what specific buyers are looking for (returns, age, location, % discount, etc.).  In this way you will be able to find deals that meet their target criteria and get specific feedback about what you would need to change about the deal to motivate someone to transition from looker to buyer.

Best of luck,

John

@Kathryne Omaits There are many different ways to successfully invest in real estate, with pros and cons for every strategy.  The opinions people hold about each strategy and the risk associated are as seemingly limitless as the stars in the sky.

Most people start investing in real estate as a side hustle to their full-time job.  This is exactly how I got started.  It makes a lot of things about investing in real estate easier and less risky for the borrower and the bank.  This in no way invalidates the numerous other ways that other investors have done it.  There is no one "right way" to invest in real estate.  The beauty of this asset class is it allows for an amazing amount of creativity.  Just because someone else doesn't understand your investing strategy or how you make your living, doesn't invalidate it.  But that's just my opinion. :)

John

@Conner Davis I would suggest you start by figuring out what meetups are happening in or around your area.  This will allow you to meet & speak with other investors.  I think focusing on building relationships with other investors in and around your area is the way to achieve the results you are looking for.

You can learn a lot from books, podcasts, BP and YouTube.  All of these resources will help you in learning the basics of the areas you have stated you are interested in.  This basic knowledge will allow you to speak to other more experienced investors and ask good questions when networking / attending meetups.

Best of luck,

John

We ended up replacing both of our cars with new vehicles last year.  As others have said, we have nice reliable cars (4Runner & Tahoe) but nothing that looks out of place at our rentals.  That said, the vehicles are paid for by the rentals.  I think it was Robert Kiyosaki who said you should have your assets pay for your liabilities.  In this way the vehicles are an expense to the business.

There is absolutely nothing wrong with wanting nice things, you just have to make sure you don't let your want of nice things derail your long term financial goals.  Personally I know I could tend to go more towards the extreme side on saving money.  Luckily, my wife challenges me to consider all opinions and figure out how to add assets to cover many of the nicer things that make life more enjoyable.  It's never a perfect solution but I do think it makes the journey and the grind more sustainable.

John

@Benjamin Bollman you could reach out to Certain Lending or Flynn Family Lending.

@Nghi Le

@Beth Johnson - Flynn Family Lending

They are the companies I am most familiar with that could potentially help your client come up with a financing solution.

Regards,

John

@Dexter Peterson You might look at providing funding or doing a JV on one of the flips your mentor is doing. While you want to make sure you earn some return on your money, the real thing you would be purchasing with your money and hustle is a hands on education about flipping a house. Not sure if that's really the answer you are looking for, but that's most likely where I would start.

John

@Natalie Casey Yes, the eviction moratorium is still in place at both the federal (CDC) and state level.  Depending on the specific location of your rental, there could be additional protections at the city level for tenants.  There are some limited exceptions to this for illegal or dangerous / destructive acts but I haven't heard of many people being successfully able to remove tenants at this time.  It is paramount that you ensure you are following all the rules of the moratorium so ensure you understand what they are for whatever jurisdiction your property is located in.

I would suggest you start by staying in contact with the tenants.  If they are struggling to make ends meet due to the pandemic, there are state and local programs that maybe able to help them.  How long it takes for that support and any restrictions will depend on the tenant's specific circumstances.  If they have been good tenants, I would suggest being flexible where you can.  Evictions can be both expensive and messy so avoid going that route if possible.

Finally, if all else fails and you are not able to work this out with your tenants or they refuse to work with you, seek legal advice from an eviction attorney.  You can find references on either of the WA State landlord associations.

Regards,

John

@Chris Chris I would start by contacting the banks and speaking to their loan officers.  This way you are not opening a bunch of accounts at credit unions you may or may not actually use.

Once you have identified a bank you like or would like to work with, I would open an account as this will generally make it easier to get a loan if you have some relationship with the bank.  Additionally, once you get a loan most will require that you setup an account with them with auto pay for that loan.

John

@Chris Chris I have found WSECU and Costal Bank were both good to work with.  We ultimately chose WSECU because they offered better terms.  BECU is also a really great credit union to work with but in my experience they were very conservative in their lending.  That said, it really all depends on what you are trying to do.  All banks are going to look at your strength as a borrower and what it is you are trying to purchase (debt & the projected cash flow) to make a determination on a loan.

You might be better to look into an asset based lender like Certain Lending. @Nghi Le is a contact there and would likely be able to help you figure out if that is a better route based on what you are trying to accomplish.

Best of luck,

John

@Kobe McDaniel We are still investing in smaller 2-4 unit multifamily properties in Snohomish County. The competition for these properties is high at the moment and this has been pushing up the price. That said, you can still find them listed on the MLS so you don't have to go crazy with marketing campaigns or other more involved strategies.

I find the key is being ready to move on a specific property quickly when you identify one that meets your desired criteria.  For this to work you should have access to your earnest money, financing ready (don't need the loan but having all your information with the mortgage broker you are going to use) and a relationship with an agent / broker to present your offer.  None of this guarantees your success but in my experience does help a lot.

John