All Forum Posts by: Malachi Weary

Quote from @Windell Cox:

I'm ready to jump into real estate investing but..to be honest I'm scared. 

I've been recently looking into Montgomery AL as being the location for my first property. BUT im worried that the vacancy rates are too high. And no major industries but military.

So, I'm not sure. Is Montgomery a good place for my first buy? Or should I focus on locations with lower vacancy rates.

Thanks

 Congratulations on taking action! I understand the uncomfortability of not having everything figured out Windell. You will learn and grow throughout your journey. Every decisions won't be perfect there will be times of mistakes, learning, and growth to develop and strengthen you toward your goals and becoming a wise successful investor. Never give up! You got this

Not very familiar with the Montgomery market. Your outreach, research, and consistency will place you in alignment

Great job

Quote from @Tim Bratz:

I think for me it's more about finding deals in places where you know how to operate rather than finding the hottest markets. That's a fine strategy too, just not for me. I'd rather find great deals where I operate, which is primarily in the southeast and Cleveland-area. 

 Nice Jim, when you mention operate do you refer to a team to securely aquire,manage, and maintain your portfolio 

Quote from @Melissa Nash:

I like to diversify. You can do that by strategy or even state or break in down a million ways. 

This is my current strategy: 

1. STR's for cashflow & long term growth + plus I get to use them too. I call this a Vacation Rental Lifestyle. Where I get to use and enjoy them and they make me $.

2. Turnkey easy passive in high cashflow markets (Ohio areas and Birmingham) average 8-10% return year 1. Affordable entry and done-for-me.

3. Hybrid BRRRR in Memphis where the rehab team finds me the deals and rehabs them for a cost but they do all the work. Less income back that a traditional BRRRR but I literally did nothing.

There is plenty of cashflow to be had in these areas for me and I am able to keep growing. 

 Nice Melissa!

1.Attorney- Allows you to set up the property business intity. Having a formal business setup will protect your assets and provide tax advantages to you. Your attorney will file your paperwork with the corporation commission.

2.Personal Accountant- Will provide you with tax advice specific to you

3.Property search team- Professionals that know the market, understands and is intentional on you achieve  your goals, and hold your same level of integrity

4.Real Estate Broker- Help you understand your market and find you propertiesp.

5.Property manager- help you access the property you are considering from an operational perspective

6.Offer team- property searcch team will refer these professional you as you need them. 

7.Your real estate broker and property manager will set the tone for your team and work experience!!

8.Lender/Mortgage Broker- With an understanding of the property investing. They have the ability to lend you money and find you deals

9.Other investors- sources of equity

10.contractor- perform detailed inspections. 

11.Appraiser- Help you determine the appraisal value before and after the sale. Should be specialized in your market and and your targeted property 

12.Architect- Helps with new design ideas and renovations to increase operations perform

13.Insurance agent-Proper coverage with owning pro

14.property tax consultants-Insures your taxes are done fairly and accurate

15.Income  Tac consultant- provides you with updated understanding of the tax laws 

16.Environmental engineer- control of environmental hazards

17. Surveyor- boundary lines and elevation in property rehabilitation

18.structural engineer- Analyze the structure of your property and provide and recommend a strategy fix the situation

These connections help you maintain a successful Real Estate portfolio

NONE! Do your homework. A multifamily purchase price is determined by the operation of the asset

A solid deal that promotes a win/win for everyone involved, -Find, -Evaluate, Goal -developing a realistic purchase price that maximizes your monthly income and appreciates the asset.

Quote from @Ron Singh:

What city would you prefer to buy multifamiy ?

-goal is long term

-city with potential of future growth in jobs / population

-low cash flow is fine for now, but would depend on it after paying off

-would state with no income tax better for tax purposes ?

-Prefer states with landlord friendly law

-less crime, quality tenants

-prefer options of str in few units if possible, so vacation states might be good too. (nice to have)

-prefer more on cash flow inrease (vs appreciation ) or both.

What places do you suggest ? and why (bonus)

Columbus Ohio sounds like a market you would be interested in for multifamily long-term. The city is expected to grow significantly in the next 5 years providing jobs and an increasing population. What are your thoughts about Columbus Ohio's future market?

How can a good appraiser be an asset to you?

Quote from @Doug Smith:

Quote from @Malachi Weary:

Quote from @Doug Smith:

That's one of the reasons we can't/don't do loans below $100K. There are fixed costs to us and variable costs to us as lenders. You mentioned a couple in your question. It costs me roughly the same amount to process a $10,000 as it does a $100,000 loan. I have to pay the processor per file...not based on a % of the loan. The appraisal is the same cost. You get the idea. Few of the costs are variable, which skews the fees charged as a percentage of the loan. Regulators look at loan fees as a percentage in most instances, so as we get down lower we can actually be in violation of regulatory rules such as usury simply because of the fixed costs. I would have to see the settlement statement to truly pick it apart, but small loans will typically have a much, much higher cost as a percentage of the loan than larger loans due to the fixed costs that are involved. I hope that helps. 

Hey Doug, what resources do you use to learn about the impact loan structures have on lenders?

 Me. I've been a lender for 33 years and own a mortgage company. I also do a lot of industry speaking and consulting work for banks and law firms in addition to our loan and real estate investment activities. Everything I type in answers simply comes from years of experience, mistakes, and "seeing it all". 

Awesome Doug, do you have any other platforms of operation? I'm interested in learning more

Congratulations on getting your condo Michael. Did you face any hardship getting your loan?

Quote from @James Wise:

Super cheap cash flow properties in Cleveland and Cincinnati. Good for those who want to get started in the business on a shoe string budget.

Columbus has a stronger job market and better long term population trends, but it's also more expensive so it's hard for those without a lot of money to buy anything. 

 Understandable, with Cheap cash flowing properties would you consider the location effects and expenses associated?