All Forum Posts by: Michael Wentzel

@Steven Tardieu

Analyzing deals and finding a good deal is a step in the right direction. But since it is your first deal, the financing might be challenging. Really challenging since it looks like you're trying to buy out of state...

1) Private money- I sometimes hear people talk about the 3 F's... family, friends and fools. You maybe have shot with family and friends if you are a trustworthy guy and have done your homework. Fools might be scared away by the lack of experience and out-of-state purchase.

2) Hard-money- Expensive and probably challenging with no experience and out-of-state purchase.

3) Local banks- Local banks can sometimes be more flexible than big national banks, but they like to put their money in deals in the their communities, not out-of-state.

So unless you can find a friend or family member to do this one with you, you might want to go back to the drawing board. Attend some local REIA's and see if you can partner with some local investors to gain some experience.

Mike

@Josh Skogen

If this is your first deal, I would move on. I have bought two properties with clouded titles off tax sales. I'm in the process of going through the quiet title process. I don't foresee any problems, but it is an extra step that takes time and money.

There are always other deals out there. I would get a few deals done before I start working on the fringes.

Mike

@Matt B.

We have bought 17 properties in the last three years and only one is on seller financing. It was brought to me by a wholesaler. So you might ask wholesalers if there are a few good ones in your area. Beyond that, you would normally need to be the one to suggest it, as it isn't that common that buyers offer it.

Mike

@Isstad Rashadeem

I like the idea from @Thomas S.. If you are single and can get into a small multi-family (2-4 units), it is a great start. By selling your place and already having a down payment for the rental property, you should be able to get into a decent multi-family.

I also avoid properties with HOA's, as it is normally a variable that you can't control.

Mike

@Brady Alford

Yeah, leave the grooves. Forget about trying to fill them in. Too much work. And forget the sanding too. TSP and a good primer should be fine, as @Chris Carollo said.

I hope it goes well. I've always been happy with how it turned out.

Mike

@Neal D.

It is great that you have some equity in your home to start with.

A few options come to mind...

1) Could you turn the house into a rental and go buy another house for your residence? Do the numbers work? That 30-year fixed financing is precious.

2) Could you sell the house and buy a small multi-family (2-4 units)? This is a good way to take your first step into real estate investing.

3) It seems like you might be about to get about $20,000 out on a HELOC. Is that enough for a down payment for a property in your target area?

Unless you have a family member or friend willing to be your private lender, it might be hard to find one until you have some experience. So if you can pull your first deal or first couple deals off with your own resources, it will put you in a better position to attract private money.

Mike

@Brady Alford

I have painted that old dark wood paneling a few times. It looks decent and even has some "texture" from the creases. If it is the basement and you're not going high-end, I would give paint a try. Spend your dollars upstairs in the kitchen, bathrooms and curb appeal.

Mike

@Miguel Pelegri

I manage 17 rental properties in Colorado from overseas through a good property manager. Good property managers do exist. Find them. Interview a bunch. Ask other investors who they are using.

But it is also key to buy your properties right so there is enough margin to use professional property management and still cash flow.

Mike

@Augustus Jensen

Good job getting started young. You can learn a ton on BP. I've listened to all the podcasts and the Ultimate Beginners Guide is a good overview.

There are a number of REIA's here in Colorado Springs. Try to attend a couple.

Consider house-hacking when you arrive in Oklahoma. You might be able to get into a small multi-family (2-4 units) with a small down payment and great loan terms.

Mike

@Ivan Mendoza

We have a portfolio of rental properties in Pueblo. It is a vastly different market than Denver or Colorado Springs, but it can be a great place to get into Real Estate investing at an affordable price point. @Bryan O. was correct in recommending you meet with Realtors, Property Managers and investors in Pueblo if you'd like to enter the Pueblo market. I have a few I could recommend. The price points allow you to learn and make mistakes with much smaller amounts of money and there can certainly be enough margin to put professional property management in place.

On the flip side, I have always wanted to house hack. So if you can pull that off in Denver or the surrounding areas, it is another relatively safe way to enter real estate investing.

Mike