All Forum Posts by: Toby Khan

Market is hot right now (has been for a while), it is in very much favorable for the sellers. From what I understand it is definitely your time in the market not timing the market. Play for the long haul (7-10 years or even hold for 20-30 years) & you will be fine. Now going in the deal make sure property cash flows so even if the taxes go up year after year so does your rents. I have found many off market deals and closed them to cash flow very well. Key word is off market-anything on MLS you are competing with everyone and their brother in law who are willing to take single digit return.

Also I personally know few people who have been waiting for the market to crash since 2017. Meantime they missed out on 4 years of appreciation, loan pay down along with tax benefits. I hope this helps. 

Hey guys,

Mt agent brought me a deal from Amery, WI. Numbers look good at first glance and looks like previous owner kept the units well maintained according to the pics. However from my initial research on the area it seems that the population is at -1.2% decline rate between 2000-2019. Any insight on the city and surrounding area would be very helpful.

Thanks

Toby

@Jason Shackleton 8 are renovated. This was complete guy job. Renovated units are to be rented out by my property manager who also manages seller’s other properties.

Hey guys,

I am needing some advice on how to purchase a property from seller that has completed the rehab work but completed half way. 

Backstory: Seller took on the project while ago but his contractors were only able to rehab (lack of motivation and no project manager to oversee it) half way. It is 4 buildings of 4 plex 16 units all together. 1.5 building is rehabbed. Bank doesn't want to get involved as they mentioned the contractors will have the 1st lien on the property and banks usually want to be the 1st. It was also brought to my attention that cash out refi AFTER construction will be easy solution. Contractors have up to 6 months to file if they aren't paid. I have asked for the contract between seller and contractor to find out if there are any termination clause. Numbers are amazing on this deal hence trying to figure out how to get this one. Seller is bleeding money and has no money left to rehab the rest-he is making interest only payments to his lenders.

I will very much appreciate if fellow investors have gone through something similar and how to close it.

Thanks in advance!

@Eric Goldman Thanks for the tip. It came to my attention recently that after all these years I should have a business card to hand out but I wanted to see if they are still in use because other than agents I never really have received business cards. And frankly out of 30 cards from a networking event I only remembered the names of the agents who had knowledge of working with investors. My understanding was these days folks are more into emails, phone calls, virtual networking groups etc. But very much appreciate your suggestion.

Thanks guys!! Again very much appreciated.

Lots of great info on this thread. I am an investor who have invested out of state investing strategy to build my portfolio. I live in Twin Cities, MN but this area is very much saturated by investors where the numbers didn't make sense for a while so I went in the Kansas market. Below are the steps I took in order to successfully complete out of state investing-

-Building a team: Start with 2-3 investor friendly agents (become part of the Facebook investors group in the town you are interested in to invest). You will get the same MLS properties as they will send you like they do everyone crosses their path but be sure to tell them you are investor & numbers are what that matters for you. Be very specific (do your research which zip codes you are interested) on your criteria. You may come across some off market properties through agents connection in the area.

-Financing: Call around as many banks as you can in the area to find out the interest rate, down payment percentage, amortization etc. (it is different for every bank and investor). Lot of banks will not lend to you for being out of state resident. In most cases it will be 20%-25% down payment as it will not be your primary home (5% down) & they want some skin in the game. Once you & the bank is set you can start sending them properties you are interested in after you ran your numbers. To be able to pull BRRRR in another state you will need a great team & you will also need experience in managing folks.

I hope this helps & sorry for the long explanation. 

Thanks

Toby

Great! Thanks guys for all the responses. I guess I better order me some business cards lol. Once again thanks guys for taking the time to respond. Much appreciated.

Thanks for the responses. It's really not about the money just wanted to grasp if it is still what folks are doing when they meet others. 

Hey guys,

I have been in real estate investment for a decade now. So far it has been a great journey for us. Last week I was told by a broker that I should have a business card-Would you guys say it is necessary-is it still a thing? Back in the 90s I remember my uncles, friends dads etc. used to throw around business cards like it is going out of fashion. Let me know what you guys think.