All Forum Posts by: Michael Glaspie

Just out of curiosity what market is this in? You don't have to give the city per se but what general location. 

@Emma Su his is in the process of hiring a property manager who specializes in Airbnb only. He charges 25%. This covers all amenities and restocking of supplies, cleaning, etc. Honestly, this is the ONLY property manager who specializes in Airbnb in our market. So, he is expensive but can charge what he wants. I would suggest you make sure you're getting what you want in return. 

@Nathan Gesner

Absolutely. Now full disclaimer this is my partner's property, not mine. I still prefer long term over the short term. Anyways, it cost him approximately $2500 to furnish the unit. Then another $1500 for his electronic key access and setting up various other systems to make it convenient for him. He also put in about $12,000 in rehab (across the 4 units) and made this unit a bit nicer than the others. His other 3 units rent for $650-670 each. His single Airbnb unit brought in $1400 2 months ago and $1600 last month. These are GROSS numbers, not NET. But nonetheless, the point I was driving at was that if you look for other opportunities outside of 'vacation' spots or places that hold 'festivals", You can have opportunities present itself. 

Here in our market, my partner has a very successful AIR BNB that is one unit in his quad. The one Air BnB brings in more than the other 3 units combined. I say this not to boast on our market, but to highlight that there are not many 'events' that would attract visitors. We are next to a large military base which attracts short term visitors all the time. So, you may want to look at other attractions beyond amusement parks, festivities, vacations, etc. Military bases, in general, may be great locations (especially those that host basic combat trainings). 

@Augustus Miller  

you can refinance as soon as the lender allows you to. Delayed financing technique allows after renovations are complete. BRRR typically allows after the tenant has occupied the property for 6 months minimum. Every lender is different and a lot of it depends on the property's performance and your ability to carry a loan. My recommendation is refinancing as soon as possible if you are using borrowed money because the rates may be cheaper with a mortgage. If it was a cash purchase then the refi would give you access to the capital again to find your next property.

Many options but ultimately it's what you want to do with it. 

@Ricky Powell

Sourcing Buyers: I have been sourcing buyers for a few years so now many of them come through word of mouth. I don't want it to seem like we are closing 1000s of deals annually but for our product, we have loyal clients who purchase many. We source through platforms such as this, Facebook private pages, local meetups that we host, and referrals.

The market for your product: I am not familiar with the Tulsa, OK market. I believe there is a market for all properties, you just have to find the right buyer. So, if that is the product you want to sell I think it is important for you to demonstrate the value the comes with the price tag. I would also recommend catering to a different audience. The newbie investor may not be interested in anything below 1% and no equity. However, a high-income earner may be looking for a tax reduction vehicle with higher returns then a bank could provide. 

I'm not sure if I answered your question or just rambled haha. But I hope that provided some insight. 

Hey Alex,

We do a turn-key model here but with partnered companies just like you are mentioning. Your ideal model would emulate that of Memphis Invest or Morris Invest in terms of transparency and fluidity. (There are many others but those two come to mind immediately).

So, you will be looking to have an arm for the following functions:

• Real Estate transaction (brokerage)
• Property mgmt
• construction

So, what we did was vet our 3rd party service providers with things we would want personally as investors and ensured they can provide that not only locally but at a distance as well:

• Transparency 
• Communication
• Quality

Then we made sure they all were aware of the intent and understood not only our process but in which order each step would need to be completed. Then we put them in contact with everyone else that was a party to the process as well. 

It becomes really simple after a few test runs because of being able to work out the kinks with the team. It also is simply because as you leverage other companies, it is what they do every day. It's just them organizing the volume you provide. 

So, as mentioned me and my team are the broker side of the house in this process for our local market. We have been able to create this company on the residential side and now we are working on the commercial side with the same intent. 

It is very doable. Best of luck and continue to grind away at it. Let me know if I can help at all. 

Read some of Brian Hennessey's books to cover many sections of Commercial assets.

Podcasts:

Best Ever Real Estate Investing Advice: @Joe Fairless

Lifetime CashFlow: Rod Khlief

Apartment Building Investing: Michael Blank

Real Estate Investing for CashFlow: Kevin Bupp

Start attending local commercial associations for brokers and property managers. 

There is a ton of ways to get free information. Just as Dennis mentioned above you have to decide what path you want to take first. Best of luck

From my experience, the home owner-occupied loans (VA/FHA) will only secure a single property on a plot of land. So, it can work up to 4 units if they were all under one roof. The fact that there are three separate structures is going to cause the need for creativity. If this is your first purchase, congrats and if you can manage this please share your experience with the community.

Potentially a seller financing deal might be the way to go. You can negotiate whatever terms may best fit your needs and present it in a way that would be equally beneficial to the seller. Best of luck. 

I am not sure what your financial situation is, however, you can look into purchasing a multi-family property with a USDA/FHA loan to reduce your initial obligation. Then just as mentioned above, hire a property manager to reduce your time obligation. This would be a good way to start your journey. As you accrue more money in the near future you can look at more creative ways to employ it into investments.

Best of luck on your journey!