All Forum Posts by: Matthew Drouin

@Troy Gaines I think the most important part of the team for someone just starting out is the lender.  Have you talked to any local banks about getting pre approved for a mortgage loan?

@Ryan Bilak

A search for suburb single family rentals is going to be tough.

The great thing about the greater rochester area:

it’s cheaper to buy than to rent a house.

The bad thing about the greater rochester area:

It’s cheaper to buy than to rent a house.

In my experience with suburban sfr, more often than not, the tenants are what the french call “un vrai foutoir”, or in English: “a hot mess.” People who would rent long term, do so for financial reasons not personal reasons. Because frankly, in Rochester, it’s financially stupid to rent long term. So who are you left with mostly? People with problems.

So that being said, if you insist on buying single family suburbs, do it in locations close to universities with strong graduate school programs. You will have a higher probability of attracting that high quality long term tenant from a graduate student or PHD candidate that doesn’t want to buy a house. Check out the areas near UR, RIT, Nazareth, and Saint John Fisher!

@Tom Desroches I second @Dan H. on your projected expenses.  In terms of strategy, I like house hacking a multifamily and buying the most expensive property you can with owner occupant financing.  Owner occupant financing gets you the lowest interest rates, the lowest down payment options, and the longest term.  The reason behind buying the most expensive property you can is your equity will build to a much greater number as you hold onto the property.  For instance, if you buy a $100k property with 20% down, assuming 2% annual appreciation over a 15 year period, you will have added $32k to your net worth.  If you consider the $500k property with the same assumptions you will have added almost $160k to your net worth.  Plus when you move out and rent your unit, I think you will have some nice cash flow!

@Sebi Ardelean I’d be happy to give you my insight. I’m always excited to hear when people are moving to our wonderful city!

@Kaiser Johnson in regard to location. I would recommend making a visit here and surveying the market. The good from bad areas in your opinion (it’s subjective) will become abundantly clear.

@Kaiser Johnson I would say it would depend upon property type and size. For multi family and commercial in good areas that are above 10 units in size our management company can assist you. For anything other than that if you are starting out small, I second @shanechapin Eastside realty management is a good choice to supplement a remote self management system. They are a la carte meaning you can manage the collection of rent etc but you can lean on them for maintenance and placing tenants!

A warning to Real Estate Investors,

DON’T BE A VAMPIRE. If you are an investor, you want to work with a rock star agent, right? Then don’t act like Mr Simmons here.

Here’s what you WANT to do if you want to have a successful relationship with an agent:

1.) Be mindful of the agents time. They are not some free public utility that you can abuse. Agents have a life too and it doesn’t revolve around you.
2.) Be prepared on your financing. If you are paying cash, have a proof of funds ready and share it with the agent. If you have a private money lender, be sure to have a commitment letter from them if they are a well known company in the community. If it’s a family member or not someone we’ll known that is lending to you, make sure you have their proof of funds with a letter of commitment.
3.) Be specific with what you are looking for in an investment property. Not just the location and neighborhood but what your return on investment requirements or other financial goals are. How do you analyze an investment property? Share your financial analysis spreadsheet with them. Better yet, if you’ve bought property before produce a credibility book that showcases your portfolio and your numbers.
4.) Be humble and be professional. Being a real estate investor is not a hustle. You have to think of yourself and carry yourself as a practitioner. Being humble makes you likable and inspires trust and loyalty. A lot of investors carry themselves with an air of superiority that is off putting to most people.

@Joel Barrett I have some feelers out there for you!  Thanks for sharing.  I look forward to seeing you soon!

To achieve financial peace, you don't really need to worry about how much money you make but how much you SPEND. Think about it. If you don't spend, then you don't really NEED to make any money right?

At this event, you will learn how to hack out one of your biggest monthly expenses: Your housing expense! How would you imagine your life if your housing expense just went away? Might you feel a heavy burden lifted off of your shoulders? Might you feel a lot freer to get out of the damn Rat Race? You will learn from three real estate investors on how they did this and continue to build their wealth by minimizing expenses and maximizing their income! Learn about HOUSE HACKING!

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#buybacktheroc hosts, Harold Bain and Matt Drouin have used this very same strategy and you will hear their experience as well. Come join us this March!

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