All Forum Posts by: Johnny Wolff

@Alex Sazonov - Really depends on the appreciation potential and class of the property.  What's the historic appreciation of similar condos over the last 3 years?  Is this in an A, B, C, or D area?

This is a pretty skinny deal, cashflow-wise (and you'll have higher turnover since its a condo), but if it's rapidly appreciating in a great area it might make sense.

Hey @Jonah Kirangi - interesting idea.

I know HomeRoom would be willing to post our upcoming deals with you if that would help.  Interesting idea for sure.  Think with enough SEO you might get some traffic on the turnkey side.  Do agree with you on syndication - its not something people would typically Google.

We have a list of turnkey companies that we created if that's helpful - happy to share.

@Travis Gregory - the main advantage in my experience is that lenders have to scramble sometimes when things get dicey.  If the inspection yields some crazy stuff, but you still want the deal and need to switch to a 203K loan.  Your typical lender's head would literally explode.  Your big bank lender would just say "that's against our policy."  Some local lenders might be able to help.  But guys like Erik/Aaron (especially Aaron) wouldn't flinch and would get it done.

Great leaders can't make deals - but they can save deals by having a lot of experience facing crazy investment purchase issues and closing on time no matter what.  The clock is ticking all the time - and if you don't close on time - the seller can cancel the contract no questions asked.  Rates are only a small piece of the RE equation.  Give me someone that will close on time and fight to save my deal any day.

There are a number of investor-focused lenders that can lend in multiple states (Erik Kolseth with Arvest is another option).  Would start with one of those guys (Aaron is great too) instead of working with a big bank.  The awesome part of these investor-focused guys is that they are investors themselves and can provide an unbiased second opinion when needed.

Hey @Scott Tolton - most of my investments have been Texas (Midland, Austin) and its been a great (and profitable) experience.  @Harrison Sharp is an awesome Texas local investment focused agent.  I highly recommend him!

@Bryen Blankenship - I'm from the bay as well!  Small world :)

Yup - I bought a new build of east riverside in 2017, and SFR in 2016 in south AUstin and a duplex near the new soccer stadium in 2015. Honestly, they are BY FAR the best investments I have ever made. Think appreciation is less hard to predict than people seem to think. If a population is booming...with no indication that it will slow dow...its gonna appreciate.

@Bryen Blankenship - hate to break the unanimous decision here but I'm a big proponent of the Austin market and will continue to be until it becomes comparable in price to other tier 1.5 cities in the U.S. (San Diego, Denver, Portland, etc.).  The pace at which ATX (and the entire San Antonio to Austin corridor) is expanding is pretty incredible - https://www.forbes.com/sites/joelkotkin/2016/10/13/the-next-great-american-metropolis-is-taking-shape-in-texas/#32666e3f1e2f.  Do think there are some really nice options in North East and South East Austin - that combine affordability and tons of upside (and will be 15 minutes from the new Tesla Gigafactory).

Full disclosure - I don't know a ton about the Denver market - so take all this with a grain of salt when comparing.  Can connect you to some folks down there if you decide its a good choice.  Definitely join this group if you're considering the Austin market --> 

https://www.facebook.com/groups/InvestorUnderground/

Hey @Chris Webb.  Definitely a prudent thing to consider right now.  We're in unprecedented times indeed.  I think the answer is largely market dependant.  Property values on the coasts might be in for an interesting 2-3 years as we come out of this thing.  Am very bullish long-term on the coasts though.  Think the "everyone is going to move out of California is a bit overblown."

When it comes to the middle of America - many of the markets have proven to be incredibly resilient to recessions.  Take a look at this chart of KC --> https://fred.stlouisfed.org/series/ATNHPIUS28140Q.  Only one downturn in 50 years in KC RE prices...crazy.

Anyways - I told my dad today that I'd wait to buy in expensive cities, but would encourage him to buy today (or anytime really) in the middle of America.  Historically, we don't see a lot of pullbacks in those markets...and life is short.

@Ashley Budyak - awesome that you're looking into making moves so quickly after graduation!  A few thoughts:

1)  Have you talked to lenders about this?  I feel like some would be able to work with you - and I don't think your rates would be higher.

Not sure if I'm allowed to share the investment focused lenders that we use at HomeRoom or not so DM me and I'll send them over if that's helpful. They all work exclusively with investors and have more flexibility and skill to get investor loans approved.


2) House hack is always my #1 recommendation for new investors. Learning from inside your product is so helpful. And that leverage with an FHA loan is second to none! (don't forget about looking into down payment assistance...its awesome).

Welcome @Travis Gregory - here to help if you have questions.