All Forum Posts by: Tanner Sherman

I think your best bet would be to talk to property managers that can offer the boots on ground perspective of their market. The more seasoned companies especially as they can recognize what state of the market they are in. I do not know of any tool that does this on a national scale. 

In my area leashes are not optional and all dogs must remain in full control of the owner at all times. 

Best of luck finding out about lease options in NYC!

Yes you are correct, skip tracing is a great way to track down someone's info especially if the program you are using offers it in the click of a button. I think just a google search and calling every number associated with the name is a good start, but not effective for volume. You could also search them on facebook and google and try to narrow down if they have any public information that you wouldn't have to pay for. 

BiggerPockets has landlord forms available here in the link below. They are free for BP Pro Members.

 Nevada Landlord Forms

The goal for me is to be all in for no more than 70-75% of the ARV. That includes purchase price, closing costs and repairs. This allows for multiple exit strategies but they are near impossible to find right now given the state of the market. Look hard enough and you will though.

The reason that people looking to BRRRR instead of flip can afford to pay more is because they are okay with leaving a little bit of money in the deal. If they can refinance out all but a couple thousand dollars then they are going to earn an insane ROI on that money they left in. A flipper would be at a loss in this situation.

The numbers look pretty good but I will warn you from experience- where there is mold there is MORE MOLD. Get it thoroughly inspected, it is worth it. I found mold that was hidden during due diligence and it wound up costing over 25k in remediation and reconstruction. Turned into a full gut. 

Any time you try to force a bad deal into a good one, you are setting yourself up for failure. Focus on learning the market and becoming an expert in it, set your criteria and only make offers that fit that criteria. You are bound to find a deal that fits into that criteria eventually and if not, take a step back to reflect and decide whether you need to change your strategy, your market or maybe even asset class. 

Without knowing too many details, I would recommend a cashout refinance. This is assuming that the interest rate you have on it currently is higher than what you can get right now, and that you are looking to reinvest the same way you did on this first property. If you are looking to implement the BRRRR model and scale quickly, I would recommend a HELOC as you only pay interest on it when you use it. Once you get super good at BRRRRing properties, you can pair your HELOC with a hard money lender to really grow.

Tyler,

If you were to lend $40k for someone else's deal, what kind of return would you be okay with getting? Maybe 8-12%? You should be looking to do much better than than on your own money. 

If you need to take out a loan in order to make these repairs, you have to also factor in the interest you would be paying on the loan. If you get a personal loan at 5%, you would need to get 13-17% on your money. 13% of $40k is $5,200. If you finish the basement will you be making $5,200 or $433 per month in positive cashflow? If so, I would beg borrow and steal to get that money. 

If you could raise the money from a private money lender such as friends and family and offer them a desirable interest rate, that would be my recommendation to get the basement done. Ideally, you could look to borrow the money from them and cash out refinance when the work is done to pay them back. Let's say they lend you $40k at 8% annually until they recoup their principle. That would be $266 per month. If you are cashflowing $433 per month, you can still profit $167 per month, or take that to pay down their principle balance. 

Hope this sparks some creativity!

For what you are looking for, I would recommend researching popular cities in the Midwest. I am biased to Nebraska because I absolutely love the people here, but I have lived in Minneapolis (and agree with your assessment... it is the reason why I left), I have lived on the east coast, Colorado and all over the US and I have to say that I like the markets in Iowa, Nebraska, Kansas, Missouri the most. I have talked to a lot of investors from the west coast that make a crap ton of money, have a lot of equity in their homes, and choose to invest in the Midwest. I think you should research where the big tech companies are moving to and follow suit. Wherever they go, they bring a ton of population growth. 

Hope this helps!