All Forum Posts by: Stephen Jeffers

Originally posted by @David Bardwell:

That’s right. BiggerPockets is keeping me from getting my next deal. If you’re reading this, and certainly if you reply, you’re guilty by association! BP and all the new resources I’ve uncovered as a result are contributing to my analysis paralysis.

Ever since I discovered BP 9 months ago, I’ve been binging on real estate education. Easily 100s of hours of various podcasts, half a dozen books, and countless hours in the forums. Flipping, wholesaling, apartments, lenders, realtors, note investing, short term rentals, mentors, coaches, selling financing, private money, hard money, syndicators, REITs… Enough already.

I know, it’s not really BP’s fault--or yours. And actually, I’m a lot smarter than I was 9 months ago. That’s the good thing. But the flip side of that coin is that I also have a better idea of how much I DON’T know--And I think that’s what’s been holding me back.

SO I QUIT! I’m quitting BiggerPockets until I have my next deal under contract.

I’ll probably continue to answer direct messages, but no more forums, no more podcasts, no more books, until I have another deal to share. I don’t know if it will be a week or 3 months till I return. This public declaration is really for me. But I’m hoping to see a few comments that may be helpful to others who might be experiencing the same thing.

HOW HAVE YOU DEALT WITH ANALYSIS PARALYSIS?

Bye for now!

Good luck Dave!  I definitely understand that plight, but I also notice you already have three properties.  So I guess I'm a bit confused, maybe you were looking to go to into Multi family properties or something different or some new avenue of which you were doing all the research.  Maybe looking to do some flips?  Back to the point, it is very difficult to learn that you don't know as much as you think, and humbling.  Scary in fact.  Scary to the point of not wanting to make additional or mistakes at all.  If life has taught me one thing, if I'm not making mistakes then I'm not trying hard enough.  Sometimes failure is just the tuition in the education of investing, most times far more rewarding and educational than success.  As such, hope you see you back, with stories to share and lessons for us all to learn from.

I'm sure alot of other will come and give the analysis on the numbers, but if you look up House Hacking you should be able to find quite a bit on how to see if the numbers are good. You'll need information on the repair cost, vacancy cost. You will also want to consider if you want to 203k with FHA to do the repairs as part of your loan vs financing them separately. Also will depend on what the landlords position is with regard to the sell. Perhaps a land contract with better terms and if you've been an awesome tenant and they aren't looking for fast money a low to no money down option.

$1800 a side with comps at 450k - 600k sounds on the low end in my estimation.  At 525k purchase price I'd image a payment north of 3k. Maybe my math is off, looking forward to the conversation.

I have the Matterport camera, I've been stumbling on getting a footing into the Indy market as a service provider.  I'm an 14 year IT professional and when I saw the technology I knew it was the next thing.  Large markets like apartments.com have nothing buy Matterport scans on their models.

Nice scans and very nice units.

Originally posted by @Branden Sewell:

@Stephen Jeffers What I am looking at now is the possibility of a 203K on a duplex around $170K. That would give me about $30K to play with for potential repair costs. That is basing things off of getting approved for $200K based solely on my wifes income. However, some really awesome people got me in contact with a great loan officers that is helping me to understand my options better and I think we are going to make a move on a duplex by the end of 2018. We are going to be able to get my wife approved for a little more since we will be including the rent for one side of the duplex as income. 

We should be able to save enough for a downpayment by December but we will need a seller willing to pay the closing costs.

Goal: 1st deal done by the end of 2018!

I wouldn't say I am rushing things but I am dont want to be one who sits around and talks about this investing things I want to make something happen. Loving all the great feedback!

I'd be very interested in how that proceeds. Most time credits toward closing costs don't include the down payment, and with FHA would still be at 3.5% at lowest. Also your offer becomes 'less strong' when asking for closing costs. In no way discouraging, but just providing some of my experiences especially in hot markets.

I wouldn't think a bank would offset the payment against rent until at least a signed lease is executed, and I've heard sometimes up to two years.  So to qualify based on an offset mortgage payment against rent seems like a risky proposition for a bank, but I've never done it so Good Luck!  Then again I'm not a mortgage broker or loan agent, so there is that.

@Branden Sewell wow, looks like you’re getting quite the advice here. Just to add an opinion, don’t rush! Besides the costs of acquisition you will need to be considerate of the costs of rehab, if necessary. The best deals usually require it, as it is one of the easiest forms of distress to capitalize on. Even if you use a 203k that will increase the loan amount of the property, understandably since you qualify just on your wife’s income you have other income to additionally go toward these costs. There is no such thing as a free lunch. The market already did that failed horribly. The qualifications in place now are as much a protector of the buyer as the seller and bank. It’s like using a power tool with a safety guide, yeah you can get around the safety (loan qualifications, bank overlays) but unless you know what you’re doing, the alternatives (hard money, etc) could have you ending up with 9 fingers.

Good luck, and i'm super duper analytical and trying to be paralyzed but also make the proper decision and pull the trigger, luckily I moved from my first home and turned that into a rental.  What are the details? 

@Ben Leybovich this was the moment when I was alerted by the forum that I couldn’t upvote the same person more than five times a day. Lol. Congratulations on the deal, I don’t understand all the concepts...yet.

@Reggie Greene I haven’t been yet, I hope to once school schedules settle down a bit.

Hello everyone! My name is Stephen.  I'm a 37, birthday was 8/21, native of Indianapolis.  

I've been a licensed Realtor since 2009.  My sister got me interested in the field.  I was a Property Manager with a Indy startup for about 6 years that has grown to employee several full time agents.  I currently only operate as a Realtor, but on the side from my full time 9-5 as an IT Professional.  I own my first home and rent it out for a profit.  My goal is to continue investing in real estate; first to increase some initial capital and later to cash flow perhaps out of my 9-5.

Looking to add another investment property this year, or two for a stretch goal.  I recently divorced so things are a little tight and looking for creative financing options.  I'm also interested in flips, so I have been doing research on that process and luckily my cousin is doing several in the Indy area.

Mainly I've come here to read about the success and challenges many have made in an effort to move forward with as much information at possible.  Also to perhaps meet and get more involved with the Indy community and beyond.  (I plan to join the local meetup groups later this month)

As far as personally, I'm the father to two beautiful girls, they are 10 and 11.  I enjoy video games (Destiny, NBA 2K19, Fortnite), Movies, TV and hanging out with friends over a drink or a cigar.