All Forum Posts by: Kyle Spearin

@Christian Morsing you could make the private money lender taking the second position a minority partner in the deal?

@Dionne Ladson great to see you're analyzing deals! In my opinion, you want a contractor to go to the property in person because it's not always as it seems in the pictures. As a general rule of thumb for underwriting deals, you can figure out the average cost per square foot to get work done. This will at least eliminate some deals before wasting your time and money sending a contractor out. Another tip is to get really good at figuring out comps/ARV for deals and using the 70% rule. Good luck!

@Robert Lopez welcome to the community! Looks like you're well on your way to success.

@Austin Hughes would you ever consider house hacking another property in your area and turning your primary into a rental? This would allow you to put less down. You could also apply for a HELOC on your current primary before you move to have access to that line for future deals.

@Nicholas Toti with a BRRRR, there are typically 2 different financing methods 1 when you buy and one when you refinance. For example, one way I've seen it done is to use hard money for the purchase and rehab. Once the property is appraised at a higher value, you could then approach a DSCR lender.

@Ramin M.it's on the commuter rail, a suburb of Providence, and has a hospital close by. In my opinion, it's more of a cash flow play than a growth play. The prices are still pretty low there because (my guess is) the demand to live there isn't as high as a place like Quincy. If you decide to go this route, I'm happy to connect you with a friend investing in the area.

@Timothy Lewmanthanks for sharing! It would be great to have you share these insights at one of my meetups. This is fantastic.

@Rodrigo Ribeiro really great that you're trying to add value! I think marketing is an area where many investors could use some help. I recommend looking on the Boston area forums and reaching out directly to people you'd like to work with and give them a custom pitch. Good luck!

@Nakia Addison I started scaling recently, so I'm really still learning. My biggest lessons are around dealing with contractors because I invest out of state and got burned big time. These are probably my top 4 lessons:

1. Lack of Licensing
I hired someone who claimed to be a general contractor, but wasn’t able to pull permits when asked to do so. Make sure you research them before giving them any money! 

2. Unrealistic Low Bids
A contractor I worked with bid $15,000 less than the next, so naturally I gave them a shot. Turns out, all the work was done incorrectly and I still had to hire a more expensive contractor to correct the first person’s work. 

3. Inadequate Communication
If people go MIA, you don’t want to work with them. You can tell from a first impression what the experience will be like…if they’re not detail oriented in communicating with you, expect them to do the same with your properties.

4. High Upfront Payments
Try to negotiate to see what they can do upfront. If a contractor wants a large portion up front, they might need it for materials and labor costs. They could also run away with it– it’s not fun when that happens so be careful and compare what contractors in your area are requiring/asking for.

@Braden Jackson this is a great question and interesting dilemma. Firstly, it's important that there is no one-size fits all approach to real estate investing. There aren't right and wrong so much as there's a right way for your risk profile and comfort level.

That said, I personally would take the low downpayment option like an FHA or 5% conventional. It gives you flexibility to keep more in liquid reserves or even invest in another deal faster.