All Forum Posts by: Preston Dean

I work for a real estate developer and we have 2 investment opportunities. $90K ROI after 18 months and $300K ROI after 2 years.

If you are interested please send me an email or text and I will provide you with the details

Hi @Stan Tallman

Here are the most logical causes

Hydrostatic Pressure (Groundwater Seepage) - During or after heavy rain, water in the soil builds up pressure and forces its way up through weak points in the foundation.

Slab Foundation Leak or Plumbing Issue - Even though you're on city sewer, it’s still possible for a drain or sewer line under the slab to be cracked or compromised.

Improper Grading or Drainage - If water is pooling near the foundation and the grading isn't directing it away, it may seep under the slab.

Improper Vapor Barrier or Slab Pour - If the vapor barrier under the slab was poorly installed—or skipped altogether—moisture will push upward over time.

Hi @Nate Garvey

Here are a few things that investors make a mistake on

1. Underestimating Renovation Costs
2. Overpaying for the Property
3. Choosing the Wrong Location
4. Bad Contractor Relationships
5. Underestimating Holding & Selling Costs
6. Not Having Multiple Exit Strategies
7. Trying to Do Everything Yourself

Hi @Mike Schelske

Let me try and help you here. 

First we need to define what are capital expenses (CapEx) ?
CapEx are big repairs or replacements you’ll eventually need to pay for, like:
A new roof
A new furnace or A/C
Replacing old appliances
Fixing foundation or plumbing
These don’t happen often, but they’re expensive when they do.

How Much Should You Save?
Here’s a simple rule:
Save $100–$250 per month per unit
OR keep $3,000–$5,000 saved per unit just in case
Example: For a 4-unit building, aim to have $12K–$20K saved up for CapEx.

What Does Insurance Cover?
Insurance pays for:
Storm damage
Fires
Burst pipes
Vandalism

Insurance does NOT cover:
Old roofs
Old furnaces that stop working
Wear and tear

If it breaks because it’s old = you pay for it
If it breaks suddenly from damage = insurance helps

Hope this helps!

HI @Schneur Polter

Bring your hustle, learn quickly, and trade time for opportunity. The key is to focus on providing value first, not owning properties right away.

Hi @John J Kelly III

Step 1: Use Your Cash Smart
Instead of buying one big property, spread that money across a few solid deals:
Put 20–25% down on multiple rental properties
Your $400K can help buy $1.5–$2M worth of real estate using loans
Focus on properties that cash flow every month
Even better: don't pull your 401k out and pay a penalty—roll it into a self-directed IRA so you can invest it in real estate tax-free.

Step 2: What to Buy
Stick to Philly suburbs so you can visit the properties. Look at:
Small multifamily (3–20 units)
Mixed-use buildings (storefront + apartments)
Value-add rentals you can improve and raise rents
Good areas to explore:
Norristown
Pottstown
Bensalem
Coatesville
Reading (more cash flow, lower price)

Step 3: Use Real Estate to Lower Your Taxes
Here’s what wealthy investors do:
Real estate gives you depreciation (a legal paper loss)
That loss can cancel out some of your income, especially rental or 401k withdrawal income
If you or your spouse can qualify as a real estate professional, you can offset W2 income too
This is how they legally say, “I haven’t paid income tax in decades.”

Step 4: Plan the Big Picture
Think like this guy you met:
$25K/month goal = $300K/year
If each rental brings $300–$500/month → You need 50–100 rental units
Start with a few deals this year, build up over 3–5 years

What to Do Next:
Talk to a real estate CPA
Find a local agent or investor-friendly broker (go to the top of this page and click on AGENTS
Run numbers on a few multifamily properties

Best of luck from Fort Worth, TX 

HI @Meghan Lewis

Step 1: Learn the Basics:

Start by understanding how real estate investors make money. Focus on:
Wholesaling (finding deals and assigning them to investors)
Off-market deals (not listed on Zillow or the MLS)
How to talk to sellers

Easy Resources:
YouTube: Pace Morby, Jerry Norton, Ryan Pineda
Podcast: BiggerPockets Rookie
Book: If You Can’t Wholesale After This by Todd Fleming (great intro)

Step 2: Start Cold Calling
You don’t need fancy tools—just a phone and a script.
Start by making a list of older or ugly-looking homes (driving around or on Google Maps), and call the owners using info from sites like TruePeopleSearch.com.

Step 3: Connect with Investors
Once you find someone who wants to sell, you bring the lead to an investor who buys houses.
How to Find Investors:
Join Facebook groups like “______ (City) Real Estate Investors”
Go to local meetups 
Message people on BiggerPockets.com

Step 4: Add Value and Learn
You don’t need to know everything—just bring energy and be helpful.
Offer to:
Find leads
Cold call for them
Help organize contacts
Drive around and look for rundown houses
Many investors will happily split profits or mentor you if you help.

Hi @Sarah Lastovich

Fist determine what she wants or needs (e.g., a lump sum, income stream, or debt relief). Next the property's market value (via CMA or appraisal). Third How much equity she has. If she owns it free and clear, you have options. If there's a mortgage, you'll need to factor that in.

You could buy her out through a few ways. 

1. Traditional Mortgage

2. DSCR Loan (if you’ll generate event/rental income)

No personal income required; based on property's income potential. May require appraisal showing market rent or projected event income.

3. HELOC or Cash-Out Refinance (if there's equity already) If she qualifies, she could pull equity herself, then you make a side agreement to take over payments and/or title.

4. Owner Financing (Family Deal) You agree to pay her monthly (like a private mortgage). Can be formalized with a promissory note and deed of trust. Good for keeping things in the family and avoiding loans.

5. Partnership or Equity Share Give her a share of future profits instead of a full buyout now. Combine this with a partial cash payment if needed.

Construction Funding Options:

1. Renovation Loan (FHA 203(k), Homestyle Renovation) If you live on-site, FHA 203(k) could work. Rolls purchase + renovation into one loan.

2. Hard Money or Private Money Faster, but higher interest (9–12%). Great if you have an exit or refinance plan within 12–24 months.

3. Business Loan or SBA 504 Loan. If you plan to operate as an event business. SBA 504 loans can finance owner-occupied commercial property improvements.

4. Investor/Partner Capital You bring the property, someone else brings the funds. Could structure as a JV with shared profits from the event space.

5. Grants or Local Economic Development Funds. If it’s a historic barn, ag land, or in a rural development zone, you may qualify for: USDA loans/grants. Main Street America or preservation grants. Local tourism or economic development funding.

Best of Luck from Fort Worth!

@Matt James

My business partner and I have developed a mentor/mentee program. Are you looking to invest here in the Dallas Fort Worth area?

Hi @Gabriel Reyes

welcome to BP!

if you are going to start a team I would suggest going about it the way Brandon Turner says from the BP podcast, and get your core 4.

1. Your contractor

2. Your deal finder (agent/wholesaler)

3. Your property manager

4. Your Lender

My suggestion to find #2 & #4 would be to go to the top of this page and click on FIND AN AGENT & FIND A LENDER. There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area. My suggestion would be to select someone with the most forum posts or most reviews. That way you know they are active in the BP community!