All Forum Posts by: Tanner Sherman

Tanner Sherman has started 7 posts and replied 322 times.

Hi BP Forum.

I'm looking for some advice to help me get started in real estate investing. I wanted to take advantage as a first time home buyer using FHA to buy a multifamily house or perhaps a duplex in NYC.

I just hit 30 and currently work as a nurse, so ideally commute time into the city is 30-40 min. My plan is buying a duplex and rent out another unit as midterm rental for travel nurses.

I would greatly appreciate any advice or connection.

Thanks in advance.

Hands down the best way to get into the investing space. It balances your risk as you learn the business. That being said, I know nothing of the NYC market, so I would highly recommend you connect with a savvy investor focuses real estate agent. Interview a few and ask them specific questions. Every agent says they work with investors, but very very few can advise you on how to build a portfolio.

0 Votes

New York City, New York

Quote from @April Smalls:

Hey You Guys,
I am seeking some guidance as I have recently established a Rental Arbitrage company. I have taken significant steps to ensure the credibility of my business, including crafting a comprehensive operations plan and presenting myself in a professional manner. Over the weekend, I have been actively touring various apartment complexes and reaching out to numerous potential partners via email.

However, I've encountered a setback; some of these apartment complexes have declined to work with me due to my lack of experience with prior Short-Term Rentals (STRs). I am now seeking advice on how to proceed and whether I might be approaching this venture incorrectly. Any insights or recommendations would be greatly appreciated. Thank you.

I would work on your pitch. Put together (or hire on fiver/upwork) a really good pitch deck that shows a lot of value to the owner/property management company. Another tactic would be going a little above asking rent. A landlord would have trouble turning down a lease above their asking rent if you are good at selling yourself and creating comfort around taking responsibility for the property.
Express to them that the property will be better looked after than it would be with a traditional tenant. Worst case, you could agree to a higher security deposit.

0 Votes

Austin, Texas

Quote from @Dave Stokley:

First of all, I suggest you search the forums as arbitrage has been discussed ad nauseam. Most people don’t think it’s a good strategy, and I tend to agree.

That being said, the problem with your message is that it’s filled with BS mumbo jumbo because you’re afraid to be straight-forward about what you’re doing. Nobody knows what the hell “corporate leasing” and “alternative rental arrangements” means. It’s a quick DELETE for me as a business owner. Just say it! “I want to rent your place and put it on Airbnb.”

You also need to explain what’s in it for them. Are you going to pay them more? Are you going to pay them a year of rent upfront? Are you going to give them a cut of the profit? I’m guessing the rental market in Alexandria is very strong so you’d better make it worth it.

I completely agree- I get so many scripted messages that are very clearly from a Youtube guru. I am a lot more receptive to hearing something like:

"I am an aspiring real estate investor looking to break into the market. I wanted to reach out and see if you would be open to helping me get started by allowing me to sign a lease with you and then furnish the unit and rent it out nightly to traveling workers."

There will still be a lot of people that are resistant, but stroking a landlord's ego and asking for their backstory and what they recommend to enter into investments is a great way to meet people. If you can build confidence that regardless of how the STR performs, you will pay the rent every month and take all the risk.

0 Votes

Quote from @Carissa H.:

Hello,

My name is Carissa Hendricks and I am so grateful to have found this community! I am finishing up How to Invest in Real Estate by Joshua Dorkin/Brandon Turner and would like to take another action step. My husband and I are interested in starting our investment journey, but we are not sure of the best avenue to do so. He currently works full time while I stay home with our 11 month old daughter. Recently, I have considered either returning to the workforce within a property management role for experience or obtaining my RE license. What advice or recommendations would you give to our family? I would also love to connect with any local investors to simply learn more. We live near the Savannah, GA area.

This is a great question, but it is pretty much apples and oranges. I would start with Robert Kiyosaki's Cashflow Quadrant, and decide where you want to be. Being a leasing agent would be in the Employee quadrant, where as being a real estate agent is in the Self Employed Quadrant. Both have their own unique pros and cons, and both can help benefit your investing goals. I want to emphasize what others have said; you do not need a real estate license to be a successful real estate investor.

Alex Hormozi talks about finding your highest dollar producing activity and making the absolute most amount of money you possibly can, and investing as much as you can. I like the idea of working in the industry parallel to your investing, which can help you learn faster just through the osmosis of being around it every day.

You could also do both. Get a W2 as a leasing agent to learn that side of the business, then spend your nights going through schooling to get your license. When you get licensed, those two "jobs" could work synergistically to give you an upperhand in the other!

Hope this helps

1 Vote

Savannah, Georgia

Quote from @Richard F.:

Quote from @Alan Asriants:

Getting property management experience would be great for you.

I don't think you need your license to get paid a salary.

If you are paid commissions from the properties you manage, then yes.

Aloha,

That varies based on State laws. Most define "real estate activities" that unlicensed individuals can not perform...salary or commission has nothing to do with it.

Yes, definitely state specific.

2 Votes

Savannah, Georgia

Quote from @Michael Smythe:

Since 95% of agents really don't know much about real estate investing, you'll probably learn more by working in the PMC industry.

This is assuming you and your husband plan to buy rentals.

As a real estate agent, I think he is shooting low with that 95%....

1 Vote

Savannah, Georgia

If you plan to raise capital, always start by consulting an SEC attorney, it's not an area you want to mess around with. The most advantageous way to raise capital for you would be debt. You raise money at a fixed interest rate, when the investor's get their return any profits on top are yours, and then when the investor get's their initial investment back it's all yours.

Development is a speculative investment, and limited partners typically will want a much higher upside potential, so you might be better off starting a fund where you agree to share the profits with the investors even after they recover their initial investment.

If you are going to be doing all the legwork, guaranteeing notes and have the expertise to execute and all you need is capital, one of the first two options might be your best bet. If you need to partner with experience, net worth, or legwork, a JV might make more sense. I wouldn't cheap out on this part and hire an attorney to help set up a bulletproof partnership.

1 Vote

Atlanta, Georgia

Quote from @Don Konipol:

Quote from @Jay Hinrichs:

Quote from @Zachary McDonough:

Quote from @Scott Gaspar:

Quote from @Zachary McDonough:

Quote from @Vince Mayer:

This is not a sub 2 deal. This is a VA assumption.

Explain how they are different. I must be ignorant. Because upon talking with Pace Morby students, I was under the impression that it is a form of sub to.

In a sub2 the loan stays in the sellers name, in an assumption the loan is changed to the buyers name. Typically only VA, FHA, and USDA loans are assumable, from my research

For this assumption, the loan still stayed in the seller's name. I was added to the loan as well, but the lender disclosures were clear that the seller was still on the hook if we defaulted.

@Don Konipol maybe Don has seen this but I have never seen an assumption where the seller stays on the loan and you the buyer goes on the loan in as co borrowers.. I wonder if there is some confusion some where. But either way seems like a nice deal for you.

Jay, a thought occurred to me. This was probably a subject to but the buyer executed a personal guarantee with the SELLER, not the lender. AKA wrap

That's a good thought- I've never heard of anyone that is non-military getting added to a VA loan, but I guess if it is not a true assumption then it's possible, right?

0 Votes

Washington, DC

Quote from @Nami Sharma:

"I'm considering purchasing a distressed property priced at $300,000, which requires a complete rebuild. This property holds potential as an investment property. Nearby houses are 700k + I have two options: either convert it into a single large house or create two separate units to rent out. As a first-time real estate investor, I'm seeking advice on whether it's a wise decision to acquire and work on this property. Any suggestions or recommendations?

Which option carries the best risk/reward ratio? Can you limit your risk while maximizing your profit potential?

0 Votes

Philadelphia, Pennsylvania

Quote from @Brian Barch:

I think it’s tacky to specify how they need to rate you, that would be off putting to me as a guest.

I do think it’s wise to say you strive for 5 stars, you would love for a review to help your business, and to let you know of any improvement opportunities privately

It all depends on the approach- something like "We strive for 5 star quality, so please leave us a review if you enjoyed your stay!" is a lot less aggressive than "Please leave us a 5 star review."

0 Votes

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All Forum Posts by: Tanner Sherman

Tanner Sherman has started 7 posts and replied 322 times.

Post: First time home buyer| Real Estate investing

Post: starting a short term rental company

Post: Advice on my STR pitch and overall Rental Arbitrage advice (Alexandria VA)

Post: Should I start in property management or obtain my real estate license?

Post: Should I start in property management or obtain my real estate license?

Post: Should I start in property management or obtain my real estate license?

Post: Seeking to build an Equity Ticket for Spec Builds in Atlanta

Post: What I wish Pace Morby would have told me

Post: Buying a distressed house suggestion for a BRRR

Post: Do you ask for a 5 star review?