All Forum Posts by: Anthony Gayden
Anthony Gayden has started 77 posts and replied 1981 times.
Post: Where do you find contract documents?
- Rental Property Investor
- Omaha, NE
- Posts 2,030
- Votes 3,310
@Richert Dart
Here on BiggerPockets they have contracts for every state. You need at least a pro membership and they are free.
Post: What would your Real Estate strategy be if you inherited $10MM?
- Rental Property Investor
- Omaha, NE
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There sure are a lot of threads about what to do if you suddenly get rich.
The truth is that building wealth is a slow process and the odds of hitting the lottery, inheriting massive wealth, or suddenly getting a huge lump sum are absolutely tiny. Instead of worrying about that sort of thing I prefer to focus on how I can use real estate to EARN that sum.
Post: Why is there so much Happy Talk???
- Rental Property Investor
- Omaha, NE
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Originally posted by @Brent Zande:
In 2010 I had the rose colored glasses knocked off my face hard and I am trying to understand why and how there is such Happy Talk right now about the economy. I am trying to figure out if it is my pessimism based in the 2008-2010 experience or if I am completely missing something. Even Ivy Zelman is providing happy talk about the future of home building and I tend to find her team realists. I see so many businesses are struggling or have closed and though that is anecdotal I believe it is a harbinger of doom. I don't believe the propaganda that comes from the Home Builders Assoc. There and a great many very smart people on BP so please tell me what I am missing or if I am right to see the coming apocalypse.
There are a lot of people out there right now who believe that this economic crisis is just like the last one. They think that a lot of foreclosures are coming and that prices of real estate will begin to drop significantly. They want to then swoop in and buy deals for pennies on the dollar.
In areas where I invest there are fewer listings than ever and real estate is selling very quickly. I believe that the demand is high for people who were not economically effected for real estate, but the supply is very low. Not only that but all the stimulus and the dropping of interest rates has actually caused inflation. Prices are going up, not down.
This is not the same kind of recession as last time. We shouldn't base our real estate strategies going forward expecting it to be the same.
Post: Best Way To Invest $20,000
- Rental Property Investor
- Omaha, NE
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Originally posted by @Jody Sperling:
@Anthony Gayden, I've seen two 4-plex properties in Omaha recently on the MLS. One was down by Creighton. The other was by Benson Park. I evaluated both. The Creighton property's seller's agent wanted a letter of intent just to tour the units, and the Benson Park property I deemed too high risk for my current investing circumstances, but both could work at the right price. There's currently another one on Loopnet, but the price seems so high it doesn't make sense.
I saw the one in Benson. It went under contract very quickly.
https://www.realtor.com/realestateandhomes-detail/6313-Taylor-Cir_Omaha_NE_68104_M93237-98226?view=qv
The other ones I wasn't interested in buying. That is very slim pickings for a city this size.
Post: Addressing Racial Disparity in Home Ownership/ Wealth?
- Rental Property Investor
- Omaha, NE
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Originally posted by @Tim G.:
The effects of redlining are still felt today in many communities. The average white household has nearly 10x the wealth of a black household in America. Source These systems don't just undo themselves when a rule is changed.
Instead of worrying about the past, we should focus on the things we can change. That is why I am a believer in financial education for everyone. I am proof positive that anyone can get their finances together and build wealth. I did not use excuses.
Post: Addressing Racial Disparity in Home Ownership/ Wealth?
- Rental Property Investor
- Omaha, NE
- Posts 2,030
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Originally posted by @Michael Leeson:
What are you doing or seeing that effectively addresses racial disparity in home ownership/ lending/ generational wealth?
Hopefully this is a fairly straightforward question about a heavy and complex topic!
It's well documented in my city (Madison, WI) that African Americans have historically been cut out of home ownership through redlining, discriminatory lending, etc. What are some creative and effective things you are seeing/doing that ACTUALLY address this?
Redlining, discriminatory lending, etc have been outlawed for years and are no longer an issue. Credit history, funds for a down payment, and a steady work history are the real limiting factors, and that does not apply just to Black people, but anyone who wants to buy a home.
We need to focus on financial education. Specifically debt management, saving, investing, and budgeting. I highly recommend the book the Total Money Makeover by Dave Ramsey. It is simple and straightforward and works for anyone.
Another issue specific to some market are housing costs. Policies that make it hard to build housing have inflated housing costs to the point where lower income people are unable to afford even the most modest home.
Post: Sell and retire, or KEEP and retire?
- Rental Property Investor
- Omaha, NE
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Great question and I often think about this myself. The buildings themselves will cash flow and provide you with great income during retirement. The problem is that if you are managing them yourself, it basically is a job and that may not be congruent with your desired retirement lifestyle.
I say that you should manage your investments so that you can enjoy your lifestyle. That may not mean selling them, but it may mean having to create processes that allow you to do the things you want to do in retirement. Just as an example imagine hiring someone to do a lot of the day to day tasks. This could free you up to travel and enjoy your retirement.
Post: Joe Biden wants to trash the 1031 exchange
- Rental Property Investor
- Omaha, NE
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If you are curious what the real estate market would look like without 1031 exchanges take a look north to Canada. No one can deny that the 1031 exchange has greatly benefited real estate investors here. There are other ways though to make money and not have to pay capital gains taxes. The most common would be to refinance properties and draw out equity.
Post: Best Way To Invest $20,000
- Rental Property Investor
- Omaha, NE
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Originally posted by @Jody Sperling:
Norman,
I'll assume you already own a primary residence, and even if you don't, my approach wouldn't change. If you have a spouse and/or children, my approach would change.
Assuming you haven't "settle down" yet, if I were in your position, I'd hunt for a 4-plex multifamily home where you could live in the worst of the 4 units and rent out the other three.
In my market of Omaha, Nebraska, I can find four unit properties that would not only cover all my cost of living, but cash flow with me living in one of the units.
Obviously, it's a bold strategy to go from not being a landlord to managing three separate tenants, and if you live in the place, I imagine you'll want to manage it, but if you are the type of person to study, risk, and follow through, you will drastically improve your situation by doing this.
It would be my path because I could get so much more real estate on a primary than an investment property. With $20k, you could qualify for a $400k FHA loan at 5% down. Obviously, that would leave you no margin for error and you wouldn't necessarily want to max out your purchase power, but that's a huge difference compared to a commercial loan where $20k Would get you an $85k property.
Best of luck. What are you anticipating closing on this week?
You must be finding all of these 4-plex buildings off-market because I haven't seen many on the MLS in Omaha.
Post: Now i need advice after 1 year of investing by myself
- Rental Property Investor
- Omaha, NE
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Originally posted by @Christine Myers:
I started a year ago. I have 2 duplexes and one single family. Ive learned a lot on my own, but it takes time to build up that 25% down..how do you find those creative financing properties? I want to add to my portfolio.
Great job so far. I only have saved up to put 25% down on one of the properties I have ever bought (the first one). Here are some methods I have used to expand my portfolio:
1. Buy a home as an owner occupant with a 5% or less down payment. Move out after 1-2 years and turn it into a rental (I've done this twice and will do it again with my current house)
2. Purchase a single family rental with a lender who will do 85% LTV (I have one house where I did this)
3. Do a cash out refinance or use a HELOC (or both) on your current properties and use the money for down payments (I've done this to buy four properties)
4. Sell your current property and use the 1031 exchange to move into more properties. (I just used this method for the first time to go from one 4-plex to four duplexes)
5. Tap into your retirement savings (401K, etc.) by taking a loan against it for your down payment (I have used this method three times and will do it again)