All Forum Posts by: Shamus Wheeler

@Joel Florek

Thank you for making this post! I have had the same thoughts/strategy as you (although you are ahead of me in implementation).

I am purchasing a 4-unit in rural America (10k population, very isolated from major metro) and hope to purchase 20 units by the end of this year. I chose this strategy for the same reasons you mentioned; cashflow, creative financing, and being the big fish property manager in a small pond. My goal is to cut my teeth in real estate investing with this rural portfolio and then potentially move into other markets as well. It helps that this market is my hometown, so I know many people there (instant network).

I have two thoughts about my potential long term strategy. The first would be to move to a larger market to get exposure to appreciating assets, which it sounds like you are doing. The second, and potentially more interesting, would be to find other small towns that have similar characteristics to my current area, but are completely uncorrelated (different state, industries, etc.). This would provide some diversification to protect against local employer risk. A multifamily portfolio in 3-4 rural areas seems like would generate cashflow long term and protect against risk (other than the trend of people moving to larger metro areas). 

I would love to hear about your plans for your 23 units in the rural town. Are you planning to hold them long term? Are you going to try to sell them as a portfolio? Or something else? 

I see two potential options:

1. Renegotiate with the seller to extend the balloon payment. Maybe he could offer the seller a slightly higher interest rate in exchange for X years of additional financing. The seller might agree to this if they have no interest in taking the property back. Your friend could then work on improving his credit profile so he would qualify for traditional financing.

2. Sell it and walk away with the difference. With that spread, your friend will have a few dollars to save/ put into his next property. 

@Tie Lasater

I'm closing on my first 4-unit next week and your story is the encouragement I needed! Very inspiring! Best of luck to you and your team in 2019!

Also - What does the A stand for in BARRR?

@Jeremy Baxter I also recommend Upwork and have used it for many types of projects. The list of tax delinquent properties that you mentioned sounds like a good opportunity to list as a one-time project. With this, you can pay a fixed rate for the project and have freelancers bid for the price. I like to look for freelancers that have good reviews, but little experience (<100 hours). I find that these freelancers typically put in the most competitive bids to get reviews on the platform. If you like the work of the freelancer you select, you can always message them later and ask them if they would like to do more work for you. Good luck!

I think the name you chose sounds fine. I agree with @Daulton H. that it could be a good strategy to name your management company after something in your local area (Fort Wayne Rentals, etc.) so that it could be easier for people to find you online. Find a name that the domain name is available for, and go for it!

Hello!

My name is Shamus Wheeler and, as the subject line states, I am long overdue to post in these forums. I have been listening to the BP podcast since the beginning of 2016, and have gone back and binge-listened to the rest of the episodes. For the past two years, I have been analyzing deals in a few markets that I am familiar with, mostly to educate myself. I recently graduated from college, so I am hoping to cut my teeth on investing soon, most likely with a  house hack. Markets that I have looked at in the past (because I have lived in them, not necessarily because I want to invest in them) are the Capital Region of NY and Berlin, NH. I would like to discuss these markets with anyone who is interested. I have been a lurker in the forums for the past year but recently realized that I should start participating/contributing. Hopefully, this is the first of many posts. Looking forward to interacting with you all and see you on the forums!