All Forum Posts by: Ryan Hill

@Rebecca Salazar congratulations on making the leap to start your real estate journey. It's fun and rewarding in all the ways you described above. You're smart to reach out, be vulnerable, ask for help..it will save you a lot of time/money in the long run. 

Wanted to share a recent an investment I did in the SE with my partner. 

3 Single Family Properties - Seller Financing 2 years @ 6% amortized over 25 years

Purchase Price - $182,500

20% Down Payment covered by private money 5 years @ 10.5% and 2 points up front. No pre-payment penalty.

The only money we brought to the deal was for the 3 inspections and 2 points on the private money. We have plenty cash reserves in case the refinance doesn't get us to where we need to be but pretty confident it will and then some. This gives us an opportunity to pick up more properties at the rate we want. 

2 of the properties are already rented, the other property has been made rent ready per our request by the seller. Once they are all rented we should be getting around $2500/month. Not going to cash flow like crazy while we have both loans paid off but once we refinance we should net a little shy of $200/month/property. 

We like the BRRRR strategy but seller financing is a great option for when the houses are already rent ready and you can either come up with the down payment or use private money to help lesson the blow on your bank account up front.

There is a ton of competition in a lot of different markets across the US so the number one thing I'm focusing on is my deal flow and making offers on good deals. We found these off-market properties from a local property manager, I utilize craigslist, FB Marketplace and wholesalers. 

Considering direct mail, letters, calling on FSBO's and expired for finding rentals because I'm not local to the market I invest in.

Anyone have other creative strategies you are using to find off-market properties in virtual markets?

Cheers

@Travis Honore congrats on graduating college, sorry you likely didn't get to celebrate like you would hope. If you can, find a market where the numbers work and build a team there. Could take a little longer to get the team to set up but you should achieve your goals faster

@Braden C. nothing without the consent of the tenant, you're right. Good call out, I left that out. If you can't get them to move to unit B then you and the seller can work together, pay them for moving costs, find a new place (maybe leverage a local PM to do so). 

@Braxton Miller congrats on your first deal! Is there an opportunity to have a conversation with the tenant to see if they would be open to just moving over to unit B in 60 days? They could be open to it if there is a reduction in rent/cash payment for moving costs. It's worth a conversation. If they aren't open to it and you really can't stand living in unit b for 4-5 months you may want to talk to the seller about writing in an addendum to the contract that option A tenant will move out after a certain period of time (say 60 days). It all depends on how bad you want it..but it may be a good opportunity to get to know the tenant in unit A and possibly retain them as a long term tenant who pays in unit B before you talk to the seller. What's your current living situation? Can you just stay thee and collect guaranteed rent?

@Travis Honore I lurked for a while as well so good on ya for hopping in!

What are you focusing on now?

@Brad Bingham welcome to Bigger Pockets, this is where I landed when I got started not too long ago and it's been a great tool. What are you focusing on now? Sounds like you've got a leg up having that experience doing lead gen. 

Ryan

@Brian Henderson sorry to hear about your accident, when are you going to be able to get back at your job? Do you have some cash reserves you're working with? BRRRR is definitely a good option if you're in a state like CA or CO (where I am) as long as you build a good team and have a steady flow of off market deals. Who would I add to your team if I were you? Project manager to manage the rehab, a few contractors, wholesalers, people from local facebook groups and a hard money lender. Good luck, before you start making offers just make sure you have your team up and running!

@Chris Spespy I don't have any contacts in that area unfortunately but have some ideas about how else to find off market properties. Or do you only go after foreclosures? 

@Duarte Sousa welcome! Your strategy depends on what your end goal is...what are you trying to get out of investing? If you're goal is to make an income and create a job for yourself then wholesaling is likely a good option. If it is passive income then you may want to look into buying rentals!