All Forum Posts by: Matthias Wilson

I think your best bet is to do some digging and figure out exactly what risk the investor is worried about. Honesty is key. Explain how you plan to mitigate that particular risk, and if you can't satisfy the investor, then you shouldn't accept his money. Your business is worth more than a single investor, especially if he is entering into a deal with you already not satisfied.

Very good question. I own an 8-unit and a 17-unit, and both of those run expenses at 38%-39%. They are both older properties (1950-1960s construction), so newer properties might have lower expense ratios. Both are still in the process of being re-positioned, and that expense number will most likely go down as rents go up. I would be careful underwriting at any specific number lower than 45%-50% until you have proven the concept in your particular target market. I'm comfortable lowering my underwriting expenses because I know my market very well, and have experience with contractors, plumbers, landscaping, and all the other vendors necessary to properly run a multifamily property. I guess the honest answer to your question is that it depends on the market, and your research should be focused on determining that number by examining how other similar properties are doing.

@Adam Tafel Really appreciate your take on this piece, I read this absurd article a while back and it really frustrated me. Everybody in this country has a clear and simple path to wealth and financial security. It seems that articles like this one always ignore the one thing every person has complete control over... personal choice! Choices were made to attend very expensive institutions, live in a very expensive city, etc. It's awesome that we live in a place that allows us to make decisions like this, but this article has the tone of "how could I possibly afford to own a home??" Truthfully, you can't own a home in that situation, something has to change! The subject of the article wants to have her cake and eat it too, which is nothing short of whining. Either prioritize owning a home and move, or don't. Either way is fine and up to each person, but don't blame the system for your failure to see consequences to your decisions, which adults must do every day. I say this as a millenial that graduated from college with $80K+ in debt, paid off all of my student loans by 29, net worth of $1M by 32, with an active duty military salary and real estate agent wife the whole time. The only thing slowing millenials down is themselves.

Brett, that's great! I've been investing in the area for 5 years, and it's a great growth market right now. However, my advice for beginners is learn the basics of real estate investing, then select a niche that you'd like to focus on, and learn everything there is to know about that niche. You can do that by partnering with somebody more experienced, but unless you have some value to bring to the table, they most likely won't have the time to show you the ropes. Also, with your wife being an agent, welcome to the world of huge tax advantages!! Feel free to message me with any questions!

@Chance Brookins That's a great goal, I'm currently working on that same goal. I started a few years ago buying a single family rental, then the next year bought 2. Year after that, bought an 8 unit complex, and then last year syndicated a 17 unit complex. Spent those years living on my income and investing every cent my wife made. That entire time I was also reading every article and book and listening to every podcast I could find on real estate investing, taxes, business, etc. 

Basically, depending on how much you're willing to sacrifice on buying new cars, having nice furniture, etc. you can easily do what we've done, but it will take hard work and dedication. Deployments are also great for studying, with the free time you get. I recommmend choosing the strategy that best fits your goal of passive income and matches your skillset/what you enjoy, then focus and become an expert in that niche. Good luck, and feel free to DM me with any questions!

My company is currently transitioning property managers on our 17 unit complex, purchased in August of 2018. We initially elected to keep on the PM that had managed the property for almost a decade. The property was built in the 1960s, so we saw value in the experience that company had with the repairs/condition of the property. However, we have now decided that we need to go with a more pro-active PM that we have an existing relationship with, that also manages most of our other properties and meets our high expectations. 

Does anyone have advice for how to ensure a smooth transition for us and our tenants? Anyone have experience in this process, or any tidbits to help us avoid any unnecessary pain? Thanks!

@Alexander Jansen Congrats on the MBA program, that's a sweet deal! I am unfamiliar with California (Florida investor), so I'm unable to give you any advice over there, but I will say I'm terrified of investing in an area with such inflated prices. 

I'm active duty, and I control 29 units in my local area, so I can tell you it's definitely possible to invest in real estate while in the military. 

My advice for you to start acquiring properties in your current area is to partner up with a real estate agent. Zillow and other free sitees are very tough to use to analyze deals properly, so I think your best bet is to find an agent who knows your area very well, and specializes in helping investors acquire rental properties. I cheated in this aspect, because my wife is just such an agent, so we have access to MLS and her real estate professional network, which we leverage heavily.

Another recommendation is to figure out who is investing in your area; find meet ups, wholesalers, etc. and start building your network. Honestly it may be hard to learn rental investing in your area in a year without leveraging a mentor or partner that's already active in your market. Find somebody who has a few years of experience, and provide some value to them (buy them coffee/lunch, then figure out how you can save them time performing some part of their business while learning). 

All this comes with the obvious advice of reading everything you can find that pertains to your specific niche that you want to focus on (they've got some great free resources on this site), and listening to podcasts by people that are doing what you'd like to do. That should help you get started, let me know if there's anything I can do to help!

@Ian Neville Taylor That’s great! Most of us want passive income and to build wealth, you came to the right place! I would recommend reading up on the strategies mentioned above, as well as passively investing in a syndication, note investing, etc. as well as whether you want to invest in your local area or not. Once you determine what niche best fits your goals, I’d recommend digging deeper and finding people who are experienced and successful in that niche to help you get started. Good luck!

@Account Closed (my wife, realtor) is an expert on these, and she's been my agent for all 29 units I've purchased in the area! Hope this helps, good luck!

Jen and I will be there!