All Forum Posts by: Jered Sturm

If you have it under contract you could share the address and some of the locals with MLS access like myself could help you come to a realistic ARV. With so many variations in properties ARV can only be derived on a property by property basis.

Let me know if I can help. 

@Bill J. Absolutely but 50% is just a rule of thumb. You could have a 50 year old property that  all utilities are paid by the tenants that has been fully remodeled with a true 38% expense ratio. On the other had you could have a 25 year old property where the landlord pays all utilities needs constant repairs due to deferred maintenance, etc. Which may be 65% expense ratio. 

The sliding scale has to slide for each property. 

good luck with your search. 

@Michael McGarity Congrats on getting out and getting started. 

I think you need to know the pros and cons for both sides including your side of the transaction. 

Seller financing is a very serious thing that should not be taken lightly. If the seller is willing to carry debt you have to see that debt for what it is. This is someone else's hard earned money. They traded a portion, and most likely a large portion of their life to earn the money they potential are going to lend you. Treat that money like you're playing with the portion of that persons life they traded to earn it. 

To educate yourself type in seller finance into the search bar and countless forums, and articles will come up to read. 

@Travis Beehler It depends what your goals are with your properties. Do you intend to sell them ever? hold them for 20,30,40 years? Your debt structure should accommodate your own investing strategy. In my opinion where we are in the debt cycle the more long term debt you can lock up in fixed rates the better. 

Most people including myself think interest rates will begin to climb soon. Combine this with the rampant printing of money we are likely to see inflation coming. This means you get to pay your long term debt off with dollars worth less than they are today. 

@Noa Bloch My good friend @Joe Fairless speaks highly of Lima One Capital. I believe they are geared toward fix and flip, so they may have what you need.  Their website is below. Good luck!

https://limaonecapital.com/?r=AWBranded&gclid=CMTtzcPvscwCFQctaQodAtYKVQ

@Justin Young Welcome to the site. Its a great place to start. I wish I would have found the site at the start of my career like you have! 

Investing at a young age is by far the MOST powerful tool you have at hand. In real estate time is more powerful than money. I tell my story of how I got started young on the BP pod cast 124. Check it out here.   Show 124  I hope it helps! 

@Brad Miller Congrats on getting started many people never get past the start line. Cincinnati has been good to us in our investing career. Do you live locally as well? Cincinnati can be tricky if you dont the areas well. 

@Cameron C. Right now inventory levels of distressed, and all property in general are very low. Don't worry about buyers. There are many many people looking to buy right now. 

Great Story! Keep it up. 

I have not been through a downturn in my investing career. This means I don't have the insight and wisdom that many of the posters here have. 

None the less my thoughts are, yes the market is and has been climbing to numbers that don't make sense in many many deals. This does not mean someone has to sit on the side lines with piles of cash waiting for another 2007-2008 crash to happen. I believe it means you have to begin to think outside the box, be more creative with your value add, Improve management operations, find a way. Now if you don't want or need to do that then by all means sit on the side lines and wait for the correction. That is a safer and easier way with out a doubt. The issue I have with this is no one really knows when the correction will happen, or how much it will dip to correct. 

Real estate is cyclical, but technology, generation shifts and cultural norms, and countless other factors will always change those cycles making it impossible to exactly predict. After all the tides of the cycles are all spurred by human behavior. As cultural ideals and government shifts, so will the volatility and speed of the cycles. 

Many investors may fear the repeat crash of 07-08 or are waiting for it to pounce. If the market only corrects and not crashes was it worth the time on the sidelines? Obviously no one knows for sure. I enjoy learning from the many wise posters on BP, and agree with many of them. The point I wanted to make is even in markets like we are in you can stick to your underwriting standards and still find property that work it will just take more effort and more time. Currently I am willing to do that to continue the push forward rather than wait for something I can not predict the arrival of. I emphasize sticking to your standards, not bending to the spikes in the market but digging through them to find what you want. 

The current market is like playing football in the snow. It easier to play football in 70 degree nice weather. In the snow you don't have nearly as many options on plays, you're more likely to fumble the ball. So yes if you are able to go sit on the sidelines and wait for 70 degree weather during a snow storm that will make playing the game easier. I would rather stay on the field and run the ball over and over until I end up in the end zone. Much harder, but sometimes you gotta play to the environment your dealt. 

@David Dorau Welcome to land lording! dont sweat these things. They feel overwhelming in the beginning but after you go through it you start to realize all you can do is take the correct steps on your end. When I first became a landlord and property manger I would let the residents financial problems and decisions effect my personal life and stress level or thoughts through out the day. Dont do it! just figure out what you legally need to do to resolve the situation and do it and move on. 

If the tenant says it was mailed on the 19th tell him/her thank you for mailing it, however as a formality you need to serve him/her with a 3 day pay or quit notice (check on your states laws which form to use they vary by state). Inform them this is a formality that you have to take with everyone and if his/her rent shows up in the mail postmarked on your required date then you will disregard the pay or quit notice. If the rent does not show up then you will proceed to eviction at which time I would suggest contacting an attorney that will handle the eviction for you typically for a few hundred dollars depending on state. 

If the lease you inherited has a late fee implement it. 

I would personally never take a partial payment only the full outstanding balance. If he or she tries to pay partial I return it and inform them of our policies of not partial payment. 

Good luck. Once you get the hang of it and get tenants in that you screened it gets easier.