All Forum Posts by: Michael Moikeha

You will run into the same issue with the multifamily as you imagine you would now with bad credit, unless you were to partner with someone who has good credit.

If you go the multi unit route, why not occupy one if the units. This way instead of needing 25% down (investment properties) you could do an FHA loan, or talk with a local bank or credit union because they offer great rates and work with people more.

My local bank is offering a 2.99% with 5% down on a 5 year, which is great!

you don't need to start of with a full disclosure. Just ask, "Hey, I was wondering what your rent was."

Then just let the conversation flow naturally from there. If they ask why, tell them. If they don't, they don't!

in a world of endless possibilities, why not both? In every conversation you have in your daily life, somehow bring up your REI plans, how you want to make it happen, and almost leave them wondering how they can possibily be a part of it. Leave a card, then set up a time to sit down to talk later.

This is done on the side while you look for properties.

@Jack Medford

It more depends on your goals, but some of the major ones are: brokers, loan agents, contractors, Mentors, property managers, money people (hard, private).

There is a good post on this site about building a team. Search it because that will help!

Great idea. I would look for financing through local banks of credit unions, as they offer the best rates and deals, and will typically work with you more.

I am doing the same thing, and will be buying low on a place that needs work. As I fix a unit, and another units lease comes up, I will offer them a move into the remodeled unit at a price increase, or to stay in their unit at the same exact price increase. This way I am making more money even if they don't want to move around so I can upgrade the place.

Go from unit to unit doing this till you have effectively raised the value on the whole building, raising rents, and maintaining full occupancy. If the tenant doesn't want to do either, then you can easily fill the newly remodeled unit, and work on the next.

Thats my plan on the smaller complex I plan on getting while I work on larger deals.

Easy base would be rentometer.com Check Craigslist RE page. Find a comparable complex in your area, and go in and ask them what they rent for.

If you are starting with 2-4, I would suggest jumping to 8-15 after that. Once you hit 5 it becomes a commercial mortgage situation, larger downpaymnet and a shorter loan period. Typically the 5-8 range is higher risk than going for a slightly larger unit where the impact will effect your EGI less than the smaller places.

Just some food for thought.

Find a reputable REI club in your area and start networking. Depending on how much your wife makes with her job, and how motivated you are to start NOW, you could graduate and start hitting the pavement.

Networking and building a local team is key. If flipping is what you love, start searching out those places. Drive different roads to where ever you go, and when you see a place that seems flipable, snap a pic, write the address, and search the city hall records for the information on the home.

then you contact them and try and get them on contract.

Even working at full steam, your first year may feel unsuccessful, but as you build the knowledge and the team, things will start to fall into place!

Wish you the best of luck!

Good luck in your quest to find a niche in the market. There is so much that can go on, it is important that you take some time to feel your way around by talking to different people, then attack one direction. This may be buy and hold, but in the process if you find a place that wholesales better, of flips better, you go with it, but you always have your niche that you are working within.

That is my advice.

There are SO many ways to start, and that is what leads to being overwhelmed. When it comes to single family flipping, it is fairly straight forward, the value is easily set through comps, but commercial MF is a different field.

This is one reason why I quietly laughed to myself when people told me I should start with flipping SFH, as it is a completely different beast than commercial.

FIrst thing you should do is find 5 - 10 different buildings, and start crunching numbers on them. You will want to know rent rates, expenses, and what they are selling it at. With these numbers, you can learn a lot about the value of the place.

Treat this as a game, and research and learn the numbers.