All Forum Posts by: Jeff Petsche

@Andrew Johnson Thanks for your comment Andrew. Great advise and it looks like that is what I'm going to have to do in order to keep the momentum going. Very challenging when you don't or can't invest in your own backyard.

I know it can be done because I hear success stories all the time, so it's just about perseverance!  

@Brett Snodgrass Thanks for the comment Brett. I'd be interested in connecting with you sometime because Indianapolis is in our top 3 of markets to invest in, and would like to get your feedback. Also, I heard your podcast on BP and congratulations on your massive success. Would love to connect and pick your brain as I am starting out. Not new to real estate as a whole, 14 years of experience in the retail space, but now looking to build my investing business. I believe you wholesale in Indianapolis, so would like to see what your inventory looks like and see if we can do some business together.

@Garett Koehler I have a friend who is investing in Columbus and is having great success with duplexes in a very specific part of town where there is a high demand for the schools. My friend's brother is an agent with Keller Williams in Columbus and does some active investing with her as well, so having boots on the ground in that area appears to be going in the right direction. I've also researched the unemployment and vacancy rates in Columbus vs. other parts of Ohio and it appears to fair much better than the national averages or Cleveland and Toledo areas.

Hello BP Community

I'm looking to invest in some buy/hold properties OOS using the BRRRR strategy and I'm looking for some recommendations in the HM space and local banks/credit unions who are investor friendly for REFI purposes. I've heard that some of the BRRRR investors out there are using commercial banking to REFI because they don't require any seasoning, you are not limited to 10 personal loans and you can buy the property in an entity. The rates are a little higher and the loans are amortized over 30 years with a due in 20 to 25 years, no balloon payment. If the numbers still work at the higher rate, I'm willing to go the commercial REFI route if these other rules are really in place.

I'm looking for contacts in the following markets:

Indianapolis, IN

Memphis, TN

Oklahoma City, OK

Columbus, OH (May already have one here...If they would ever call me back)

Kansas City, MO

Thanks for your help and/or recommendations.

@Dylan Vargas Thanks for taking the time to comment. Looking at several markets, but not Jacksonville. Staying out of Boom/Bust states like FL, CA, NV and AZ. My top 3 right now are Indianapolis, Indiana, Columbus, Ohio and either Memphis, TN or Oklahoma City, OK.

@Kendal James I'm also looking at the OKC market. Would you be willing to reach out and share how you can help. I'm interested in applying the BRRRR strategy with SFR and up to 4-plexes with acquisition prices between $25K to $120K.

Hello BP Community. I'm looking for some advise/suggestions regarding building the relationships/teams with boots on the ground in OOS markets.

I'm a real estate Broker here in Southern California and investing in my own backyard is just not an option for me at this time. I still run my retail business here, but it's not the best area for buy-hold/cash flow. Just too expensive.

I am part of several referral groups on Facebook and have success making the initial contact with many other agents in various markets, but then that is where it seems to stall. The initial conversations go great, I provide my buy-hold criteria to the agents, I let them know I have $200K in capital to invest with and then NOTHING happens.

My partner and I are ready to pull the trigger and get our first few deals under our belt, but I'm not getting the deals put in front of me to analyze at this point. I'm doing my own searching online, but when I call to get more information about the property, the rental market, etc. it's dying on the vine.  

I've also been given some resent referrals for local banks and hard money lenders in the markets I'm looking, so I have my financing set up, and are you ready for this, over the past week NOBODY has returned my phone calls. Yes, NOBODY!

I'm staying positive and I keep getting on the phones because I know somebody will want my business, but was hoping others here could share their experiences when they were building teams OOS.

I'm not even opposed to getting on a plane to visit the markets, set up some meetings and hunt for some properties while in town because real estate is my 100% focus. 

Suggestions?  

@Alex Babayev Thanks for sharing your deal with us and congratulations! Question: What were your closing costs on the front end (original purchase)? I don't see your CC numbers in your spreadsheet. Also, what were your holding costs during the REHAB/SALE period (insurance, property taxes and utilities). Just curious what a project like this runs with the initial CC and holding costs during a 60 day REHAB period.

Thanks Alex

@Spenser Murphy it's awesome that you are taking the time to learn by asking a lot of great questions from some amazing people here in BP.

Like you, I am new to the investing world, but not to real estate. I'm a practicing real estate Broker in CA, so I'm not foreign to the RE world with investor clients.

As for the REHAB, I agree with the other comments about keeping things consistent with the neighborhood. If you are investing in your own backyard I would go look at some rental properties ACTIVE on the market and pose as a buyer. Get a feel for the condition vs. asking rent and use that as a gauge for your property.

As for contractors, start talking to agents/investors who work with REHAB projects and start vetting some of the recommendations. Attend your local REI groups and network

Hard Money: It's all over the board from 2-4 points and rates between 8-13%. I've vetted HM companies who finance 90% of acquisition and 100% of REHAB. I've vetted some that are 65% of ARV. Some are 75% of acquisition and 100% REHAB. There is usually a HM lender that will fit almost any investment situation you are looking at.

Cash Out REFI: Banks need to follow Fannie Mae guidelines with regards to seasoning, which is between 6 months to 1 year. However, I've vetted some local banks that will REFI your acquisition price + closing costs if you have less than 6 months of seasoning. Anything over 6 months they will do up to 80% LTV of ARV. Of course everybody still needs to qualify for the loan! lol

Before I consider a deal I will want to make sure I know my REFI exit strategy and have it all lined up before I move forward.

Not sure if any of this was helpful, but this is what I've learned recently.

@Steven Ortmann I am in the same boat as you with regards to beginning my REI journey.

I've been in real estate since 2003 as a retail real estate Broker in CA, but have not owned any investment properties.

I'm doing everything I can by reading RE investment books, listening to BP podcasts, reaching out to others through networking here on BP and going to investment meet up groups. All these activities provides great foundational knowledge, but at some point it's all about taking action, which is where I am.

My advice is that you dedicate at least 2 hours a day educating yourself, another hour a day of networking by phone or in person with others and then lead generating for the deals. Start learning how to analyze a buy-hold deal and analyze at least 5 deals a day. You can find deals to analyze on her or go to LoopNet.com for multi-family properties. Take the numbers provided in the listings and start analyzing.

Set your daily goals that are going to get you closer to your end result.

Good luck and have fun with it.

Jeff