All Forum Posts by: Travis Sperr

I was able to finance 3 non warrantable units with FirstBank. Send me a note and I'll give you contact information. 

Thank you  for the mention @Bill S.  

@Tashia DeHerrera I sent you a message. 

@Robert Herrera I would typically argue that you will get more for a house without a tenant than rented - but in this market and that price point- there is a fair argument that you do about the same. The good news is an investor buyer will have at least 20% down so no dealing with down payment assistance or FHA buyers. Even if you would get more with the tenant out - you have to consider your opportunity cost of missing deals in the market you prefer to invest in.

You could also looks at a 1031 exchange if you feel you have opportunities you can jump on in a timely matter.

We have been hosting a monthly meeting for real estate investors in Denver for about 7 years. Last month we tried a brewery for a more informal event ditching the projector and presentation. We had about 40 people show up and considered it a success. This time we are at Prost Brewing in LoHi.

August 9th - 5pm to 8pm ish (stay as long or as little as you can)

Prost Brewing Company

2540 19th St, Denver, CO 80211

We will have our own space to connect with fellow real estate investors and answer any questions you may have. This is a pure networking event - we won't have any presentations or pitches as we want this to be an opportunity for one another to connect, have a beer (or don't), and be able to stay as little or as long as you'd like! Come join us!

Mention you saw this event on Biggerpockets and I'll buy you a beer.

I had the opportunity to see David Tilney a few years ago - he is worth every penny. He gives solid information and has been in the business a long time. No get rich quick gimmicks - just long term smart investing. 

If you are using an LLC, you will either be member managed or manager managed. I know it is a feel good to be 50/50 or have the same title, but the reality is one person will likely "run" the business side of things and the other may be more involved in the property. It is good to have one person designated as manager - or higher % owner - it helps with when docs need signed, etc.

You will want to clearly define what each person will do and create titles accordingly.

If you have two managers/presidents/etc. the operating agreement may conflict as it is typically created to give the authority to one. The good new is you can have the docs say whatever you want - it is just best to do it up front. 

I am not an attorney or even qualified to post in this forum.

There is no limit to the number of times you can exercise this strategy with the right connections and lenders. You are limited to Fannie/Freddie loans at 10 as @Andy Schornack mentioned. A lot of investors get caught up in the conventional financed limits, but the fact is that once you have owned rentals for a while loans with local banks are pretty easy to get. Use your 10 conventional loans, then start using local banks. The good news is once you have 6-7 properties some of your 1st properties will have some equity you can cash out if it makes sense so you can keep going.

I got to 8 conventional loans before moving to a local bank and am getting 15 yr fixed rate loans at 4.5% and the banks lends to my LLC.

Keep up the good work!

Raise the rent - this is an investment/business. Raise the rent - if they move rehab and rerent for market rent. Eviction in Colorado is less than 30 days and less than $400.

All of the indicators you provide show there is not a bubble - there is little inventory - supply and demand is pushing the prices up. If you would like to spend some time on the subject, I encourage you to look at the inventory levels over the last 10 or more years vs closings per month. You likely find that there are similar closings on a month to month basis, but the inventory shrinks each quarter driving prices up. Some would say rates are artificially low, which would effect affordability, but it isn't today with 30 yr money at 3-4%. Also remember that credit is much tighter right now than it was in 2006, much better qualified buyers than the last boom.

The term "overbidding" is all relative, I would argue the real estate is trading at the market value if multiple buyers are willing to pay it.

@Cary P. Good for you! I love to read success stories that the BP community was able to provide value that shaped your business.