All Forum Posts by: Jeff G.

I'm investigating the BRRRR strategy but I've never done it before. I'm listening to David Greene's book on Audible, but the market has changed a lot since it was written. What are your tips for finding BRRRR worthy deals in your preferred market?

Also, what are some creative ways you've added value for the REFI process? Adding an additional bedroom is (where possible) is an obvious strategy but that's about all my inexperienced mind can come up with. I'm sure there are other options. Discuss...

Most of us know that the Federal Reserve intends to increase interest rates over the next few years. Is this action likely to render the BRRRR strategy untenable? If BRRRR just becomes harder, how do you intend to adapt? Do you expect the interest rates to come back down in a reasonable number of years?

If you were starting over from absolute scratch in this market with 100k what would you do? How would you maximize your growth and minimize your risks? How quickly do you project you'd scale? What would your biggest pain points be?

I have a one-off need to pull a property ownership history for a property in Flint, MI. I can't seem to find a way to do this that isn't pay walled. Can someone point me in the right direction?

@Justin Goodin, right now I'm everything squared away for the pre-approvals. Basically, I'm in "hurry up and wait" mode.

Originally posted by @Andrew Schutsky:

Overcoming my own fear of failure and "putting myself out there" combined with relentless networking (even when you don't feel like or have the energy) have been 100% crucial to bring me to where I am today. 

 Can you explain that a bit more? What's approaches have you used to build your network?

@Erickson Sainval when you say "partner" what form does that usually take? Let's be conservative and say I only have the liquidity piece for the down payment and reserves. How might this work?

@Taylor L., can you give me some idea of what you mean by "net worth and liquidity requirements?" When do you think the banks will stop asking for COVID reserves?

I've got my eyes on 2-3 apartment complexes on LoopNet that have made it past my BS filter. These all have a unit count in the high teens or low twenties. I have some specific targets in mind for cash flow and cap rate. Besides that "numbers first" mindset, I'm kind of out of my league.

My gut says I shouldn't move on these specific properties, because they're in states that are losing population and none of them are in the best part of town. So, I'm starting to look for similar properties in other states that are doing better economically. Bearing in mind that this will be my first acquisition, what do I need to know and do to get all my ducks in a row? I don't want to waste anybody's time.

Right now, I'm reading David Greene's book Long-Distance Real Estate Investing but I'm not sure that's going to cover all of my bases. I read a different book specifically about apartment investing several years ago, I think it was Crushing It in Apartments and Commercial Real Estate, but to be honest I need to re-read it.

The essence of what I'm getting from Greene's book and what I remember of the apartment book is "build a team and systematize everything." Okay, noted. But, I'm struggling to answer more basic questions:

* I do have a down payment for a property this size, but I'm fuzzy on the exact percentage the bank is going to expect. Is it 20 or 25% down?
* How many months worth of expenses do I need to tack onto that to make my numbers work?
* Is there anything like a pre-qualification phase like there is with a residential mortgage?
* For the more experienced among you, what is an instant deal breaker even if everything looks good on paper?
* If I identify a possible deal, is it bad form to reach out to the property manager directly and ask about the property's pain points?
* Are there any regulatory burdens I need to be aware of for properties of this size?
* What tips do you have for building a team and systematizing stuff.
* Where do I go other than LoopNet to shop for apartment buildings?

I'm keenly aware of how little I know and how badly I could hurt myself by acquiring the wrong "deal." Any direction on how to get started down this path would be very appreciated.

This is more for heading future problems off at the pass than an exact match to your current situation...

I'm not a lawyer. When you reach out to appropriate legal counsel, ask about adding a "joint and several liability clause" to your lease contract. In a nutshell my laymen's understanding is: you the landlord can pursue payment for missing rent and/or other money damages against all NAMED co-tenants without regard for proportionality if someone stops paying. 

This can prove very helpful in a multiple tenancy situation, if the individual who bears the brunt of the expenses in a room-mate situation suddenly leaves. You'd be surprised how many people want to renegotiate rent downward or deflect liability when a multi-tenancy situation goes bad.