All Forum Posts by: Anthony Gayden
Anthony Gayden has started 77 posts and replied 1981 times.
Post: Ep 297. Mastering the Decision Making Process w Annie Duke

- Rental Property Investor
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I finally had the chance to listen to this whole episode. It was really good. It definitely made me think about my investing style. Sometimes we can do everything exactly in a way that should work, and still end up losing. However that doesn't necessarily mean that we did things wrong.
Lots of great analogies that really helped a lot.
Oh and I used to watch Annie Duke play poker on TV back in the day, so I was quite the fan boy listening to this episode.
Post: I don’t understand how they do it

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Originally posted by @Jay Hinrichs:
Originally posted by @Mike Dymski:
Yes, commercial investors can have numerous loans...totaling in the hundreds of millions. Some general guidelines:
- No foreclosures
- No bankruptcies
- Net worth > loan amount
- Liquidity > 9-12 months of P&I
- DSC > 1.25 (debt service coverage)
- Experience in the asset class
These vary by lender, borrower, and property.
Number 3 I could see being a tough one for those starting their journey.. I know I get shut down a lot on BP for being equity heavy and debt light.. but its that net worth in my business that allows me to play in the new construction game.. without it.. would not get very far.
This is yet another reason why I still invest in 1-4 unit properties. I am slowly building up my net worth though I have been approved for a commercial loan of $500,000 based on my net worth, but that won't get you much in the multi-family world.
Post: Finally made the Business Journal in the Portland Oregon market

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Wow, you are a pretty big deal. Amazing success story you have. I’m going to have to go back and listen to your podcast again.
Post: How I went from 4 to 19 units in 365 days!

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Great job growing quickly with super low cost properties.
Just don’t forget that there will be bumps along the way, especially when dealing with lower income housing.
Also consider longer term conventional financing with lower interest rates. The goal when using credit isn’t to pay off the property as soon as possible.
Post: To MBA or Not to MBA

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I don't think I would suggest the MBA. It will put you behind years in lost income while you are in school. Once out you will owe six figures in student loan debt.
Finally there are ZERO guarantees in terms of what you will be paid if you graduate. You might end up not making any more than you do now. Except now you have a lot more debt.
Post: 5 unit downpayment information

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Originally posted by @Ray Harrell:
@Ryan Moore wrote, "I know 2-4 units require 25% minimum."
Actually $0 down is the minimum for VA loans. FHA loans require 3.5% down on up to 4 units. Conventional loans require as low as 5% down depending on your credit score and other factors. Unless you have a specific strategy, there's no reason to put down 25% on a 2-4 unit property.
The VA is only available to veterans and both are only available to owner occupants. Also getting more than one of these loans at a time is difficult with few exceptions.
Your advice does not make sense to someone who like me already has an FHA loan, is not a veterean, and has no desire to owner occupy. Minimum 25% down on 2-4 units is pretty standard. Many lenders also will require 25% down on 2-4 unit owner occupied properties if you currently owner occupy a single family home.
Just a heads up.
Post: Is wholesaling the best way to start investing in Real Estate?

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Originally posted by @Elvis Chukwu:
I don't think so, but it is a good way for some people.
Personally I would look at becoming a realtor if you want to work in the industry. If you are looking to invest, I like buy and hold investing. Specifically ones where you can build equity.
Post: Small Business Line of Credit 40K, Next Steps?

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Originally posted by @VaShaunna Dixson:
Happy Tuesday BiggerPockets.
I am seeking some "what would you do" information. If you were in the process of gaining your first property and were approved for a 40K business line of credit, would you buy a SFH (there are tons of under 40K homes in Memphis, TN) or use some of it as a down payment for a SFH, or maybe take a totally different direction?
Thanks in advance for your opinions. ;-)
I started with small multifamily. I bought a 4 plex with 25% down and a conventional mortgage. The problem was that after I made that down payment of about $45,000, I had very little money to keep expanding.
I had to use multiple lower money techniques in order to grow over the years including:
-401K loan for down payments on three properties
-FHA owner occupied 4 plex with 3.5% down
-Conventional mortgages with 5% down on 2 single family homes that I owner occupied and later turn into rentals
-BRRRR method on one home to get all my cash back and buy another property
The next thing I'm doing is either refinancing or selling a property in order to get way more units. I want to double in size next year from 10 to 20 units.
My point for you is that buying a single home and using all of your money to do it could limit your growth.
Post: Now price reductions even in C class MFH in Phoenix

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Originally posted by @Carlos Gonzalez:
I bought one for $285,000. I’m renting the units $1000 per unit So if the numbers work I’m willing to pay premium for it. Previous sellers were renting them at $670 per unit so you see there could be a reason as to why someone would pay a higher premium for the properties. That’s one of the reasons people are buying expensive properties.
Definitely, and I am glad you are getting good cash flow. I'm just not seeing rents like that in my neighborhood, even for those properties that sold for $350K+. That is why I thought prices were too high.
I have no problem being wrong though. I also strongly believe that in the long term we will continue to see appreciation and rent gains as people exit California.
Post: Now price reductions even in C class MFH in Phoenix

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Originally posted by @Anthony Gayden:
That's because some were grossly overpriced.
Just as an example, there are 4 plex buildings immediately across the street from mine for sale for $350,000. The highest most recent comp actually sold for $286,000 in July.
Disregard my last. Three 4 plex buildings a block over from mine and nearly identical sold on 8/28/18 for $395k, $350k and $350k. Looks like I just got richer.