All Forum Posts by: Robert Rixer

"Hey NFL, can I play quarterback this Sunday?"

All kidding aside, by the wording of your question you need to do a lot of learning via books, resources like BP and in real life first. Start by investing in a SFH rental or duplex and build experience and a track record.

Reonomy is great for finding the owners name but the phone numbers are usually garbage and it also costs $300/month. 

Nothing here seems to indicate a fourplex is possible without rezoning. Usually the village is concerned with density.

It's definitely possible but the bank would probably also provide some pushback as they want to see the operator with skin in the game. And then as others have mentioned the seller would have to be okay being in second position.

Smokers aren't a protected class haha. But you also don't owe them an explanation - in most cases its usually best just to tell them that unfortunately the application could not be approved and leave it at that.

I don't know about challenges they face, but one thing I'll say is commonly overlooked is sensitivity. Most newer investors will input the numbers to the best of their ability but fail to consider how each input has varying levels of effect on the final return numbers.

Experienced investors develop a deep sense of sensitivity and may not even need a model for them to know where the greatest risk points in the project are.

Great example of judging a deal based on its merits and not on size or glamour

What's your competitive advantage? How will you add value to the investments better than the next guy?

From a practical standpoint, get some reps under your belt with even a 2-6 unit multifamily on your own. 

Possible but in practice it would be tough to pull off. At acquisition the seller would be in first position on the property - you're then proposing to have him bumped down to second position by bringing in a construction loan. The bank will likely look very unfavorably to you having none of your own cash in the deal. The bank would also have to be okay with having subordinated debt on the property and the seller okay with being in 2nd position. Possible but very tough to pull off.

@Carlos Ptriawan Well put. I often like to think of extremes to put it in perspective - if 100% financing was available, everyone and their brother would be buying up property and the prices would be astronomical. People who have no business being homeowners have the ability to buy homes.

There is a balance between making home ownership attainable but not so attainable that it inadvertently brings way too many buyers in to play. My feel is that balance point is 20% down @ 5-8% interest rates.