All Forum Posts by: Greg B.

Buy a property, rent it out, repeat...

Sorry, lol, the only tips I can give is decide how you want to build the portfolio. When you say portfolio I'm assuming long term investments which could be buy and hold, buy rehab rent and hold, purchasing notes, creating notes, so on and so forth.

Spend some time here on BP. Read some blogs, watch some podcasts, sign up for email whatever you call them, ask questions here in the forum for anything that's unclear.

Building a portfolio depends on you and how you want to approach it.

Good luck

@Account Closed

Would he HAVE to get a commercial loan for a mix use property under 5 units?

I understand the commercial aspect of it but if the property in predominately residential then would that allow for a residential mortgage?

My numbers will be entirely different than yours. I'm getting back into real estate after a 10+ years. Longest story on earth so I won't get into it but...

I invest in lower income neighborhoods. Most will tell you to shy away from my type of investments but growing up and currently living in a "warzone" it doesn't bother me at all.

Anyway, properties I'm getting into will average about $60 to $70k for a SFR and about $50k for a 2fam, ARVs. My base investing strategy is cash flow. Getting into a property at 50% of ARV (including) will fetch me around AT LEAST $200 per door while keeping my Cap, Main, Vac percentages high.

Finding deals by driving for dollars (absentee owners of vacants, mainly) and expired listings. Once I build up my Cash that will change as I'll start expanding into different areas and types of investing strategies. My city is very strange. Meaning you can travel one block and see home prices at $40k and then 2 blocks over a home sold for $175k.

It changes the math SLIGHTLY but not enough to make much of a difference.

You're paying for repairs out of pocket but that money it still part of the investment.

95 + 25 + 15 = $135k and over the $128k you'd get from a 80% refi on a presumed $160k ARV

If you want to eat the 15k you're looking at 95 + 25 = $120k and that $8k might not last after costs, fees, etc on a presumed $160k ARV. Cash flow still wouldn't be tolerable.

You could adjust Cap, main, vac but the deal still seems slim to anorexic for my taste. Plus when I analyze a deal I REFUSE to adjust my CapEx percentages to make the deal work. Only if its a home run would I adjust but that's just to maximize an already cash flowing cow.

Thumbs up to you!

Your bad credit maybe be the best thing happening to you at the moment. Since you're new to BP you may think tax sales are the way to go but since you have credit issues that MUST taken care of you have plenty of time for BiggerPockets.

Take the time to visit this site daily. Over time you will begin to find your path in the land of RE investing. Your tastes may change and you'll find your niche or niches.

You say you want to stay away from banks but a deal might be a perfect fit for a conventional loan. Or maybe it will be best owner financed. You will never know until you get to that deal. Try not to put blinders on when looking at this stuff. No one strategy is better than another.

Congratulations! You have put yourself in a winning position

Good luck

Does she need the $20k to move out or is she simply looking for the cash? If the latter, maybe you can chop that down a few or $5k or so.

If she needs the cash to move then MAKE SURE YOU CAN GET TOP DOLLAR from listing it. You'll have $20k stuck in that property plus the "minor" repairs.

If she doesn't need it to move then give her the smallest amount upfront ($0 would be great) with the balance due after resale sort of like a balloon. 

What are the rents just in case you have to go that route?

Expenses: CapEx, main, vac, PM = $540

Debt Service: ~$650 (includes repairs and not knowing rate or term)

Taxes/Insurance: ~$240

So....purchased at $115k....

Income: $1,400 - $540 - $650 - $240 = -$30

I rushed this so I may be wrong somewhere along the line

Thanks for the advise. Much appreciated.

Good afternoon BP,

I have a quick question about paying a bird dog that isn't in the business to bird dog? If someone brings me a property address and I end up closing on it then pay the dog a few hundred bucks, I'm going to account for it in my books (right?). So at the end of the year when doing taxes I will expense that out. The issue I'm having is do I send this unofficial bird dog a 1099 or whatever? How do you experts handle the fee?

@Isaiah Lopez, I don't know why people can't see that this is a legit business. I mean if you know anybody that rents you know they are paying a landlord, ummmm, a real estate investor, duh. You're the 2nd person today with this kind of post so I copied and pasted my response...

I went through the same thing years ago when i was stuck at home with the parents. It's easy for someone to tell you to ignore them but that is easier said than done. Especially if you have some sort of respect for them as parents. It's harder to deal with not getting support from the ones that should always support your dreams and goals.

First thing is to educate them. Don't talk about the no money down/low money down techniques. That will bring up red flags for them. I'm guessing they are pretty traditional with their views on careers, go to college, get a job, work until you die. You have to let them know this is a business and show them your plan on how you will succeed. It won't be easy but show them the passion you have for it. Get educated on this stuff. Be able to give them lessons on what you're doing and know enough to give them good answers to their negative questions.

Show the positives this industry demands from you. Show them that you can save money and stay on top of your bills (always a plus to the 'rents). Let them know your DREAM of real estate is keeping you focused and disciplined about your personal finances. Buy books on real estate. Not simply books like "How to make $1,000,000 in 3 hours" but books about inspections, mortgages, construction, investments. Let them see that you are serious about this gig. Learn your market. Not just the market you want to invest in but the market you live in. School them on the positives and negatives that they will be able to see around them everyday. Show them how their home would be a good or a bad deal. Basically sell yourself. Turn them around and you'll be surprised on how prepared you'll become. Long before your first deal

Sooner or later they will come along. You have to be more professional when dealing with them. I know they're your parents but they don't want you thinking this is some kind of get rich quick, pie in the sky type thing.

Good luck