All Forum Posts by: Ingrid J.

@Simen Gundersen Indeed. I think more and more investors will find it worthwhile to look abroad for their real estate investments. Sweden have better options from what I've heard. We're moving our investments to the States.

@Mike Dymski Very good point about third party management and where the real costs are hidden. I added it to my business plan to keep it firmly in mind.

@Manolo D. We are both correct Manolo. Sometimes it's about how the contractor runs his or her operations. And sometimes it's about how some contractors are not honest and upfront with their clients.

@Osazee Edebiri Thank you. Yes it went well.

Best of luck! Keep us posted.

Well I cannot speak on the U.S. market but what we've noticed here in Norway is the market being affected by legislation.

The federal Norwegian government has imposed new lending restrictions this year on all lenders making it virtually impossible for the Average Joe to invest in real estate. Purchasing a home is expensive to begin with, but with the new cap on the amount of debt allowed per person, it's become vastly more difficult to aquire another property for investment purposes. Additionally there is a nationwide law (passed right after the real estate crash of 2008) which demands that every home purchase is made with a 15 % down payment. Combine that with a highly inflated real estate market and a rising interest rate, and the Norwegian market will stagnate, or enter a recession.

@Debbie Rumsey I can relate to your concerns with debt, and how reading about syndication and multifamily can be mind blowing. I think you're doing the right thing exploring these options. They have a saying over here in Norway that making an intelligent choice begins with knowing what choices you have. And how can you know? By educating yourself, even on the things that seem foreign and scary.

You also have the advantage of having experience as a landlord. Having that experience will give you a better foundation when talking to lenders. I recommend reading up on Jake & Gino's book Wheelbarrow Profits if you find the time. It is a great book on multifamily investing.

@Osazee Edebiri Sorry for the late reply. I've been moving the past week.

To become financially free there are many vehicles you can use, although it depends on how much work you want to do. If you're looking to scale up in terms of multifamily investments make sure the place you select is somewhere you would like to spend a lot of time. Many startups don't consider the vast amount of time they will be spending in their chosen location when they invest. They simply look at the numbers. Make sure you not only find a location that has decent numbers, but also one that you would like to visit.

@Mike Dymski Sorry for the late reply. I have been busy moving over the past week.

Thanks! That makes sense. I suppose the cost of staff varies from state to state, causing there to be a difference in what it costs. I myself am primarily looking at FL, TX , GA and TN, none of which sound too expensive. But I might be wrong. Just because there are good deals to be found, doesn't mean there is an abundance of inexpensive management companies.

@Zain B. I am sorry to hear it got worse. One doesn't expect people to be dishonest, but it happens all the time.

Now that you've experienced it you're gonna be a better investor than before. I think Contractor B sounds like a good choice. His request of 10 % upfront is not a lot. Be sure to show yourself on site and follow up with Contractor B, even if he is a decent guy. If he doesn't follow the schedule he's no better than the next guy. At least make sure he has a good reason for not following through if there are certain things he's behind schedule on.

As for the deposit from Contractor A I think it's probably lost. Changing the locks is  good idea. 

@Zain B. Having worked at a major retailer who deals with kitchens, bathroom and wardrobe rehabs I can tell you this contractor is a sour apple. Fire him before he causes you more headaches and money. 

For your future contractors make it simple for them so they have fewer ways to escape their responsibility. I recommend putting in fewer "milestone payments" and telling your new prospective contractor that he gets paid at 50% and 100% completion.