All Forum Posts by: Will Gaston

@Joe Splitrock Thanks for starting this thread. I think about how difficult it is for experienced investors to go back in time when they knew nothing and can have the viewpoint of a total noob. It seems so obvious now but it wasn't to us then, either. 

Some great questions I think should be asked to the really successful investors on here: 

1) "What do you believe that very few others believe when it comes to RE investing?"

My answer: Action is unequal. Only spend time on tasks that have huge impact (more properties, better loans, new relationships).

2) "Which aspect of this business (finance, management, construction, etc) will allow me to scale the fastest?

A: Finance. Understand the banks requirements and reverse engineer that. Your buying power will go through the roof.

3) "What have you completed changed your mind about when it comes to RE investing?"

A: Fix/repair everything. The next tenant will want it anyway.

@Dustin Somers a great question I like to ask Financial Advisors is "What do you with your money?"

I've been surprised (shocked!) at how often the answer is "index".

Don't listen to anybody that won't buy what they are selling. It can still be a bad idea even if they are but a massive red flag if they don't.

My experiences is that while the national economy, interest rates, and policy are incredibly relevant to what I do, I also have zero influence over them. Worrying about things I have no control over is a direct path to unhappiness. But this is just my experience. 

The best response I can have is to focus on what I do have some influence over...buying great deals and focusing on improving relationships in my market. 

If I can buy 100k house for 50k then I think it'll all be okay. 

@Joe Splitrock I think #2 is the most likely reason against a crisis. 

It's hard to see equity disappearing with a massive lack of supply (in many markets), high construction costs and low interest rates.

 Joe has great advice here. There absolutely needs to be default options in these situations. A tenant not making a choice needs to have a consequence. If not, what's the point?

@Chris Shue I have had zero luck getting an appraisal changed significantly. A few times I've gotten one up 3-5%.

You're not going to want to hear this but when this happens to me I pay for the appraisal and go to a different lender. Appraisals can be all over the place. Just had a duplex done twice this year and one came in at 440k and another came in at 350k. Both third party, independent appraisers that have lots of experience. 

Sometimes it's a crapshoot.

@Seymour D Clarke check in with @Andrew R. Lucas. He runs a great one in Columbia.

I would pay off the debt...and then invest the rest.

Paying off personal debt will help with DTI issues in the future.

What if you took the 90-100k and used it to BRRRR a property once or twice year? That's certainly enough to get some great traction in many markets.

@Bruce Runn how difficult are these infill lots to find for new construction in the Twin Cities?

@Casey Buckley that certainly would make your offers more appealing.

I would caution you though that there is *some* upside to having a lender for a newbie.

The appraisal can (theoretically) keep you from buying something that is totally off base as far as price goes. Obviously this system is not perfect but it is a good speed bump for a new investor. Without an appraisal/lender, you could pay 200k cash for a 100k property and there's nothing to stop you. Just some food for thought.