All Forum Posts by: Timothy Smith

@Nicholas Owens try AmeriCU credit union outside of Syracuse.

Also worth reaching out to Mike Anderson here in Buffalo. I just tried to post his email but I’m being blocked from doing so, but you can send me a DM and I’ll forward it along. He’s done several commercial loans for me and has some wonderful local and nationwide connections.

Contrary to other advice given on this thread, I am a big proponent of using local lenders. They understand the areas the best, and appraisals usually are more accurate. I’m also a big fan of being able to sit down across the table from somebody, but I’m just an old soul at heart.

@Carter Trombley welcome to the community. I’m also in Buffalo and would suggest you come check out our monthly meetups, second Wednesday of the month, downtown at Pearl Street Grill. 6pm. There’s usually a post about it on here, so set your alerts to anything “Buffalo”.

I'd be happy to chat with you sometime. This sounds like the kind of thing I enjoy brainstorming over. My first thought is that you are on an awesome path already at only 19 — congrats! There are plenty of opportunities to find mentorship and funding if you know how to leverage your skills. You can get into a Joint Venture (JV) where you bring the deal and sweat equity, and your partner brings the financing. Plenty of people out there have the money for deals, but the lack the time and energy to FIND them. Filling this void has tremendous value. Keep in mind it probably won't be an equal split, because the person with the money is taking most of the risk. So don't expect it to be 50/50. But this is one idea for you. Getting your license, or learning another industry within RE — mortgages, insurance, property management, etc — will help you build a career and connections, as well.

@Edna Ndangam hi and welcome. I am a self-managing investor in Buffalo and frequently mentor newbies or out of area investors. Feel free to reach out at your convenience.

What I cannot emphasize enough is that Buffalo changes block by block and street by street very rapidly, and if you don’t perform your due diligence to understand the neighborhoods, you could find yourself making a very poor investment. You will certainly pay a premium for turnkey, but if your long-term goals are appreciation and stable yet modest growth, it is certainly advisable. I am much more into forced equity and getting into larger projects myself, but I live right here and have built an excellent team around me.

Please reach out if you want to chat.

Hi @Antonio, coming at you from Buffalo here. I think that while what you want to spend all-in on this project is somewhat possible, you will end up with a very management heavy property at the end and shouldn’t expect the best tenant pool. I know you said C-class, but if you are investing from out of state, my advice is to have a very strong property manager in place and advising you before you purchase the asset. Those numbers were something that many of us were able to pull off pre-pandemic, but it is much harder to do so now.

Also, keep in mind that the “cheap houses” in the beginning can end up wiping out your cash flow with a major Cap Ex or maintenance expense. You also won’t see as much appreciation at those numbers. Unless you have boots on the ground working off-market deals or even the tax auction, I advise extreme caution.

@Matthew Irish-Jones care to weigh in?

Oops…. Disregard my last errant post! Stephanie, please send me a message if you want to connect and discuss in more detail. I may be able to really help you with local connections and doing this the right way

@stephanie

@Stephanie Bell hi, and welcome to the neighborhood. I actually live a few blocks away, and own several properties around the West Side. I also self-manage. I don't want to alarm you, but you need to get educated as quickly as possible on NYS tenant/landlord law. No, you may not ask last months rent -- we are limited to first and security, which the latter may not be greater than the equivalent of one months rent. 

We may not use eviction history in NYS to screen tenants, but you may still use credit score and income/rent ratio requirement (but not source of income). It's a sleepy read, but I do recommend reading the NYS Tenant Protection Act of 2019 -- 55 pages of fun!

Feel free to reach out if you need help. I am not an agent, but do offer advice and have a lot of resources that I have built over my career investing in my own backyard. 

Hey @Mitch, the meetups are the second Wednesdays of the month, starting around 6pm. Set an alert on here for "Buffalo meetup" and you'll get notifications.

Without knowing your entire situation, my first reaction is to recommend you house-hack. Find a triplex or 4-plex that you can live in so you only have to put 5% down. Even better, call it your personal residence but AirBnB your personal unit while you stay at home ;-) Of course, you need to find the right area that will have demand, but you'll be cash-flowing well and still have money in your pocket for reserves or the next opportunity. 

I'd be happy to chat if you are ever interested. Personally, I'm looking into starting a "newbie" consulting business and this would be an opportunity to work on structuring that, while getting valuable feedback from someone like yourself!

@Mitch hi and welcome to the BP Buffalo community! You should certainly plan on coming to the monthly meet ups, which are the second Wednesday of the month at Pearl Street Grill downtown. It’s a great resource to meet people and get referrals.

What is your current situation regarding homeownership? Are you planning on living in this property or do you already have a primary residence? That will really affect what kind of lending is available to you. Are you looking for a value add opportunity through renovation? If so, do you know contractors and have a network that can help you with that?

I would also highly recommend you educate yourself on New York State tenant/landlord law, especially if you plan on self-managing.

Best of luck on your journey!

Hi Hnu, welcome to to the Buffalo BP community. Cash flow is tough right now, as you probably know from podcasts, articles, running your own numbers...but not totally impossible. Higher cash flow usually comes from properties that require more "hands-on" management due to the condition, location, and tenant base. One of the most knowledgeable folks on here about this is @Matthew Irish-Jones and I would strongly recommend connecting with him. 

I'm always happy to chat REI locally, and would encourage you to come to the next meetup -- second Wednesday of the month at Pearl Street Grill & Bar downtown. It is a beneficial networking opportunity. Now more than ever it is important to really understand your numbers and the area you are buying -- that "accidental appreciation" that many of us rode in the last 5-8 years eroded with the higher rates, cost of entry, and renovation costs.