All Forum Posts by: Preston Dean

Hey Shaun,

What are the rates you got on those 5 properties? 

Also are all 5 properties in the same 5-15 mile radius? 

If I am in your shoes and have a 3-4% interest rate on #1, #2 I would keep them as a rental

Sounds like you've already made up your mind on what to do with #4 & 5

& based off the info maybe sell #3 and use that as the DP for the next property 

When you purchase your next property sounds like its going to be a primary so you can use 5% down and house hack your way through that one & the income from #1&2 could potentially pay for all your mortgage in your new property with the higher interest rates

Quote from @Matt Jiencke:

Hey everyone,

Live in the Boston area and looking to getting start building a portfolio and have roughly $800k in equity sitting in our primary residence.   

We have some cash to get started with but I'm looking to scale as quickly as possible so I'd like to tap a good portion of our equity.  

My wife is originally from TX and would be a dream come true to move back (we won't get into the weather and other concerns I have...)

A friend of mine said to use our house as a bank but with HELOC rates being what they are, I'm considering selling and buying something more modest in the $500k range in TX.

Our primary is in a high appreciation area and requires flood insurance.   So moving to TX has several advantages.  

Is it worth taking on cap gains, realtor fees and moving costs or should I use a HELOC to get started?

 When buying you can always ask for a seller concession to bring the interest rate from 7.5% to 6%. 

Personally, if I have a 3% rate I will never sell. And would use a HELOC like you mentioned. Turn that 3% property into a rental and don't pay a realtor fee or cap gains.

If you move to Texas put whatever down you need to have a comfortable monthly payment. 

You could even ask for escrows to be waived so you can have a lower monthly payment but then you'd be responsible for paying your own property taxes at the end of the year. 

Quote from @Alec Jacobs:

Hello everyone,

I was wondering if you guys have any info/experience about living with tenants and how to screen them among other things.

I heard about initially having a short lease to kind of feel out tenants (specifically if you live with them as a househack/rent by the room) but I was wondering if any of you have any other systems you use or things not to do. 

Any advice would be appreciated, Thanks!

See what their Facebook/social media profile consists of. If you don't know them prior to living with them then you have to take that risk, but I bet you they are feeling the same way about you.
They are coming into YOUR property and being even more vulnerable than you are. Ask for references, then ask those references for references, then ask those references for references. Go 2-3 layers deep on references. Ask to speak to their previous landlord, or roommate. 
Ask a ton of questions/pay for screening 

Quote from @Maricela Alonso:

Hello Everyone, My name is Maricela Alonso and I am new to investing. I am looking to connect and network with investors and real estate professionals. I live in Fort Worth, Texas and I would like to connect and do deals with someone in DFW area. Also, interested in meet up groups in my area to net

 Hi Maricela,

Welcome to BP. Do you currently have an rentals yourself now or investments?

I'll send you a connection request!

Quote from @Ricky Barela:

I’m looking to house hack my first property. I was wondering if anybody has experience turning an older home into a multifamily? What’s the process like?

 Hey Ricky, 

Most likely this is going to be a long arduous process. Since your current place is zoned for SFR you would have to apply for a zoning variance.

I pulled this from google: 

What is an example of a zoning variance?

Examples of zoning variances

Engaging in construction or some other alteration so that the building or property qualifies for a new zoning classification, like modifying a single-family home to be a duplex. Intent to change the use of an existing property or building, like turning a house into an antiques store.

google zoning variance and start doing some research. 

Quote from @Sonu Sundar:

Hello

I am interested in buying a new build for investment/rental in DFW area.  I live away from DFW and one day want to settle in that neighbourhood.

i did some research - so far no luck in terms of Lennar and DR horton dont sell their homes for investors.  

can someone tell me which builder would allow investors to buy their house. I am interested in Rowlet, Rcokwall, FAte, Royse city area and my budget less than $350K.

Thank you

Dan

 Hey Sonu, 

I'll send you a connection requests I know some builders in DFW that sell to investors. 

Quote from @Jay Hinrichs:

Quote from @Preston Dean:

Quote from @Jon McEntee:

Hey everyone, I'm a licensed REI sales agent/wholesaler here in Phoenix working with an investment brokerage that gets 10-15 off-market/discounted investment properties on contract every week that we market to our large private network. I mainly use the MLS, Monsoon, Facebook, and Craigslist to find buyer leads but i'm looking for other avenues. Anyone have any tips/advice for where to find solid buyer leads? Any feedback is appreciated. Thank you.

I worked with a investment company and they had access to all the high wealthy individuals with a yacht or a private plane/jet. We made calls all the time asking them if they were interested in purchasing more properties. I am not sure how they acquired such list but I know something like that is out there.

well for airplanes thats easy there is a FAA registry 

 Interesting, do you know how to get that?

Quote from @Brennen Bridgeford:

We have been in a nightmare of a fix and flip and now the market is preventing us from selling. Feel like my only options are bad options. Hoping someone can help me see another possibility. Is anyone willing to jump on a phone call?

 Hey man, I'll send you a connection request with my info you can give me a text/call

Hey Quinn!

That is such an exciting transition & it sounds like you are on the right track! 

Regarding the mortgage & checking to see if they are going to allow you to rent it out. I am not sure that, that question is necessary if they continue to receive their payments on time.

Is it a requirement to have the property inspected before renting it out? If not, I wouldn't worry about it as yall have lived in it for a while. 

Regarding exit strategies I would just reassess those on a yearly basis, like you would a rental lease. IE 2024 is coming to a close you and your brothers/team sit down and lay out what you want 2025 to look like. If one person wants to sell and the others don't then maybe its time to buy out that 1 person. 

Regarding your proximity to DA BEARS stadium, I would keep it as a airbnb and just check with your city ordinance to make sure they allow STR.

Quote from @Brett Riemensnider:

Hi everyone,

I’m looking to buy my first investment property. At the same time, a very close friend of mine wants to buy his first home. My goal is to present him with a 50/50 partnership on a single family or up to possibly a triplex in which he would be one of the occupants.

Would we be able to use an FHA loan to get locked in at a 3.5% interest rate? My current mortgage is not FHA.

Who are the right people in the real estate business that I should be reaching out to for more information before I present my idea to my friend?

Thanks.

 Hey Brett,

David Greene talks about getting together your CORE 4. 

Your deal finder (maybe a realtor)
Your property manager (sounds like it would be self managed)
Your lender
Your contractor. 

These are the people you need to bring into your circle.
An FHA loan is not 3.5% interest, it is 3.5% down 

$300,000 property at 3.5% down = $10,500
To have an FHA loan it has to be owner occupied so your friend would have to live in the place. I would go after a 4plex in my opinion. 
If you are wanting to go in on a deal with someone I would have the duties and responsibilities thoroughly outlined in the contract.
what is your exit strategy?
What is their long term play?
is it fix/flip and yours in buy and hold?

Making sure yall are aligned on this will save you a world of headache.