All Forum Posts by: Mackenzie Grate

If I could go back in time, to when I first started out, I would do what you are doing. I commend you on that. I would also try to get both, but make cash flow a higher priority for the first one because that is what is then going to propel you into your second property. No matter what, the property should pay for itself and put a little bit in your pocket should you decide to live there. I love a good live in flip, where you move into the worst unit or room and put in the nights and weekend projects to make it nice, then you move to the next worse one and do the same. Bottom line is, there is no wrong answer. Don't over think it. If it pays for itself and there is potential to force appreciation either through sweat equity or other means, do it. It's not your forever home and it doesn't have to be in your portfolio forever. If it's cash flowing though, that will help you to expand to the next property quicker. Wish I knew that when I started, lol. Good luck! You got this! I'm rooting for you!

Don't give up Sean. Your post made me think of a couple of things. First, if the partnership with your agent isn't working, tell them you want to part ways. You just have to put it into writing and have that critical conversation. However, if the issue is that they haven't been bringing you off market deals, to be honest, you may have unrealistic expectations of them at this point in your investing career. 

You are going to have to do the leg work for off market deals on your first one yourself most likely. Experienced agents who do have off market deals usually send them to investors that they know will close no matter what...in other words, more experienced investors. It's not because they don't want to send them to you, it's because there are less of those deals and they need to be assured whoever they send them too, they will close and won't get scared off with a few challenges along the way. Newer investors tend to be more risky in that sense. All off market deals have issues that need to be addressed. It's more likely an experienced investor won't walk when something comes up. 

Plus, honestly, it's very hard for realtors to do the legwork to get off market deals because we are licensed and there are laws that pertain to us that don't to wholesalers. For example, right now in New York we are still in a "state of emergency" meaning realtors cannot cold call anyone to sell there house. It makes it much harder for us to get together off market deals with that limitation. Not impossible, just harder. So do the legwork yourself. Jump in. But recognize that if your agent is educating you along the way, and helping you to understand the market, even if you find one off market, they brought you value too and played a role in your success. Good realtors spend a significant amount of time educating their first time buyers and often times people don't recognize how important that is.

Hope this helps a bit. Good luck. You have what it takes, just keep going! You'll get there. :)

I'd only use private money in the beginning of my investing career if they can beat conventional lenders rates. Yes, getting a conventional loan is much more of a hassle, but lenders who lend on primary residences usually give you the best rate. If the issue is holding on to your cash, look for loan packages with low downpayment opportunities. How do you plan to pay for the renovation to begin with? That also will play a factor in which route you take. Either way you are going to refinance down the line, or at least pull a line of credit from the property when some of the renovations are complete so I think it's more important to just choose one and get going while the momentum is there. :) Good luck!

I'd really like to see more female representation on the main bigger pockets podcast. A female co-host would be awesome.

I'm actually an agent in the Hudson Valley and have worked with a ton of investors who are doing the same thing. I also own a STR. You have to be careful because a lot of the towns are changing the regulations. Some have outlawed it entirely, some have created super strict permits so it really is a town by town basis. I'm happy to share with you specific towns I know, but I think the key is that wherever you buy, make sure you can also rent it out long term to cover the mortgage should the town ever decide to outlaw STRs. There is a long term housing shortage up here so a lot of towns see STRs as the problem... Hope this helps. But definitely happy to talk about specific locations more offline.

I have kind of a random question. Does anyone invest in creating cemeteries? I've heard about a lot of interesting real estate, but never heard a guest about this... just curious. I drove by a "pet cemetery" the other day and it really got me thinking.... lol, sorry. Totally random. Just curious.

The main goal I have this year is to improve my systems and structures around finances and delegate that out. I'm currently in the process of looking for and hiring a bookkeeper and new CPA, so if anyone has any recommendations that would be awesome! Like most investors, I'm at that crossover stage where I'm afraid I can't afford outside help yet because it seems too expensive, but I know intellectually that it will help me to grow quicker. So it's time for me to take that leap, even if it's stressful. I know it will ultimately reduce the level of stress I have so I can focus on deal finding and renovations more. I also feel like I have to get this taken care of in Q1 in order to really be able to scale the rest of the year. So wish me luck! Any guidance would be greatly appreciated! :)

One of the main strategies I use in my renovations to keep costs down and increase value is repurposing. I am constantly looking for ways to save on material costs because that is one of my biggest line items. On my Airbnb renovations, often times the items I take out can be reused in my long-term rentals (older mirrors, older lighting fixtures). Any wood that is pulled out, I either repurpose in the build or use as firewood at my Airbnb rentals. Old bricks that are removed are repurposed into landscape design. And one of my absolute favorite renovation hacks is to join the local "Buy Nothing" list serve on Facebook. These are groups where people believe in the "gifting economy" which means simply giving away things you don't need anymore. So I'll see stuff pop up that will help furnish my Airbnb or help in a long term reno and I'll ask to take it off their hands. If there is an item I am removing and don't have a purpose for, I'll list it to give to someone else in need and save on dump fees. Overall, it's a win/win.

I actually selected the brokerage I wanted to work at because of this very reason. It is a small boutique brokerage in Kingston, NY and we support each other in building our own portfolios as well as help investors get their first (or many) investments. I became an agent to expedite my own acquisitions but I fell in love with working with clients and helping them build their financial base. 

I don't think I would have gotten nearly as much specialized support as both an investor, and as an agent working with investors, if I were to have joined a bigger company or team. Doing it all has really helped me to be versatile and meet a lot of different people. It also helps to be surrounded with other badass women who are are like minded and making it happen. :)

Be consistent. Do something every. single. day. Even if you feel it is a slow start, before you know it you will look back and thank your younger self for looking out for you.

Multiple streams of income is the only safety net there is.