All Forum Posts by: Anthony Gayden

@Ryan Hebert

The numbers are different in a higher cost of living area, but that does not mean you should no longer be looking for a deal.

You have to look at a buy and hold investment property the same way a house flipper looks at a property. You find a property in need of a lot of work, off market, and at a substantial discount. You make the capital improvements necessary to raise the rents up to market levels. You then refinance the property to get your money back.

That is the best way you will be able to find properties where the numbers work in more expensive markets.

I strongly recommend that you use the BiggerPockets calculators when evaluating investment properties. The BRRRR calculator has helped me greatly on my latest investment.

@Account Closed

I personally believe the larger multifamily is the way to go, but I believe it depends on how large. If you are comparing a 12 unit complex to 3-4plexes, I believe you are correct. If we are talking 50+ unit properties, I believe the advantages are great.

However, you can only buy so many 1-4 unit properties with conventional mortgages before you will be forced into commercial lending. Some banks already say my DTI is too high and I have too many mortgages for residential loans.

The numbers on larger multifamily appear worse because the properties you are looking at might not be good deals.

@Thomas Greeley

Imagine a newer investor coming asking you for your direct mail list. The one that you just paid Listsource $200 to purchase. Or a newer investor asking for your buyer lists.

Some may even so bold as to try to steal one of your leads from under you. This kind of behavior is complete crap.

Originally posted by @Jeremy Rotert:

@AnthonyGayden

Can this be done using a loan to purchase the property initially (like hard money), or does it have to be cash?

 I am not sure about that. From what I had heard you have to have paid cash.

Jeremy Rotert I am doing this right now. I bought a property for $65,000 cash. A few days later I called a local bank and told them I wanted to do it. The loan officer looked it up (he didn't even think it was possible) and we are moving forward. He told me they could give me a mortgage of up to 70% the appraised value up to the purchase price. The appraisal will take place near the end of November so I have about a month to get work done so it appraises well. If everything goes right I will get 100% of the cash I invested back minus the loan costs.

Shiloh Lundahl There are a lot of people out there who want to take and not give.

Cole James I'm reading Finding and Funding Great Deals by Anson Young. He goes over this topic in detail. If you don't have much money starting out, you will have to leverage more of your time by driving for dollars, door knocking, and cold calling. If you have some money you can buy lists and do direct mail.

Soh Tanaka How do you predict a tornado? I've heard people say avoid places like Nebraska or Kansas due to possible tornadoes and I just laugh. They are severe storms and are unpredictable. The majority of the time they don't hit major population centers and choosing not to invest in an area due to them would be like me saying I refuse to invest in Southern California because of wildfires.

@Mark Fries

Oh look, ANOTHER property management vs. self managing thread................

Originally posted by @Matt K.:

Originally posted by @Anthony Gayden:

Originally posted by @Matt K.:

Originally posted by @Anthony Gayden:

Originally posted by @Jack B.:

The 3 million in real estate I own, half of which is equity, was earned. I stood on my own two feet since 18, paid my own way and bought the houses with 100% of my own money that I saved from a high income career I had built.

Fast forward 7 years later, a slovenly, low income guy at my company just inherited enough money to buy a hand full of houses from his wife's family...

It really is amazing how just mere luck can catapult some people...Mind you he is still nowhere near my net worth, but still, it stings a little to see someone just get a huge leg up by chance...

 Honestly, it never bothered me when someone else inherited money. I certainly will pass wealth on to my children. What bothered me was when I saw people who inherited wealth and blew it all making poor money decisions. It happens over and over again.

 Assuming you have no relationship with that person why spend the effort caring what they do or don't do with their money?  I mean if this was a family member or similar then sure makes sense it'd be upsetting, but past that why care?

 I don't wish harm or foul upon anyone, and it pains me to see the financial mistakes that so many people make in their lives. I care because I want others to succeed.

 It's not harm or foul if someone spends there money differently than you, even if they run out. What you and that other person consider mistakes might not carry the same definition. Some of those same people who make "mistakes" could be your renters one day instead of buying their own home depending on the definition of mistake...

 If you are trying to convince me to go along with your line of thinking and not care that is fine, but I'm not going to do it.

I believe strongly it financial education and improvement and I want everyone to succeed, and I try my best to teach others the things I have learned. It will continue to bother me seeing people making financial mistakes, and I have no desire to wish financial harm upon anyone just so I can get a few renters.