Real Estate Agent · Palm Coast, FL · Member since 2018 · 364 posts · 244 votes
Hello Bigger Pockets world
My name is Joe Beilke and I am Firefighter, Realtor, and Newbie Investor. I join Bigger pocket a few months back when my wife and I decided to no longer allow the Salary bribe control our lives. We started the jump a few years back by getting our real estate licenses and working toward paying off debt and start saving money to invest. It's been 3 years now and we are ready to really focus on investing in Buy & Hold and Flipping. We have been looking a duplexes and the numbers just don't seem to come together well. So who in the area is having more luck than us and wouldn't mind a few free lunches and dinners on us to pick you brains. I also have a big pickup and I can move stuff! Anyway looking forward to meeting people from St Augustine, Daytona Beach, Ormond Beach, Port Orange and New Smyrna Beach. Maybe we can get together a have some networking group drinks!
If you want a solid networking connection reach out to @Katherine Blazer. She's in your area and can not only be someone you network with but she can provide you with a list of off-market properties prime for flipping or BRRRR strategy.
Welcome Joseph! It is always great to meet like minded individuals. I'm a local real estate investor and Mortgage Broker based out of Port Orange. I'd be happy to connect. I wish the best for your in your endeavors, and perhaps we can be in touch.
You'll find plenty of friendly, knowledgeable people willing to respond to your posts. A lot of forum members are experts in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, buy and hold investing, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.
If you haven’t been to it already, the Bigger Pockets blog features links to their fantastic podcast and many great articles: https://www.biggerpockets.com/renewsblog/
The site has quite a few tools that can be helpful for new members. For example, if you are looking to connect with other members near you, want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users
@Joseph Beilke welcome! We are located in Orange County but invest in buy and hold rentals in Brevard and Duval Counties. Your area falls in our target market as well. My wife and I love to catch a few waves in New Smyrna and visit St Augustine from time to time. Anyway, good luck with your goals!
My name is Joe Beilke and I am Firefighter, Realtor, and Newbie Investor. I join Bigger pocket a few months back when my wife and I decided to no longer allow the Salary bribe control our lives. We started the jump a few years back by getting our real estate licenses and working toward paying off debt and start saving money to invest. It's been 3 years now and we are ready to really focus on investing in Buy & Hold and Flipping. We have been looking a duplexes and the numbers just don't seem to come together well. So who in the area is having more luck than us and wouldn't mind a few free lunches and dinners on us to pick you brains. I also have a big pickup and I can move stuff! Anyway looking forward to meeting people from St Augustine, Daytona Beach, Ormond Beach, Port Orange and New Smyrna Beach. Maybe we can get together a have some networking group drinks!
Hey Joseph, if you're still investing, give me a call (407) 476-5944
That post was almost 6 years ago LOL... I have bought and partnered with on a handful of properties and have grown my property management services. I'll give you a call Tuesday or Wednesday this week.
@Joseph Beilke no offense, but typical newbie mindset mistake!
Who cares what the list price is, you only offer the amount that makes your numbers work!!!
This requires you to work backwards from expected gross rents to the price to offer.
Yes, you may have to make 10, 30, maybe even 100 offers to get one accepted. That is how real investing is done.
Read on for more insight...
The Real Estate Crash of 2008-2010 caused real estate prices to crash across the country - but didn't affect rent amounts. This caused a historically unique opportunity for investors - they could buy Class A properties and immediately cashflow when renting them out.
This couldn't last forever, and it didn't, as excited new investors drove up prices.
Eventually, Class A property values increased to the point that even increasing rents didn't allow them to cashflow upon purchase.
So, the flood of new investors switched to buying Class B properties.
COVID created a chaotic spike in both the sale & rental markets, attracting even more new real estate investors. According to CoreLogic, in December of 2023, almost 30% of home sales were to investors!
Investment also spiked in Class A Short-Term Rentals (STR) and investors started paying higher and higher prices based upon anticipated STR rental rates, that exceeded sustainability based upon Long-Term Rental rates (LTR).
Now we're seeing investors pouring money into buying Class C rentals - but, many are getting burned.
In our experience & opinion, the main determinant of property Class is not location or even property condition, those are #2 and #3. The #1 determinant is the Tenant Pool.
If you don't believe us, try putting several Class D tenants in Class A apartment buildings and watch what happens. Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.
Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results. In our opinion, Class C tenants have FICO scores from 560 to 620 - where their chance of default/nonpayment is 15-22%. See the chart from Fair Isaac Company (FICO) below:
According to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.
To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure. If only it was that easy. Yes, the government pays the Section 8 rent timely, but more and more tenants are having to pay a portion of their rent. Then there are the challenges with Section 8 tenants paying utilities and taking care of their rental property.
Investors should fully understand that Section 8 is not a cure-all for Class C & D tenant challenges, it's just trading one set of problems for another.
We see too many investors not doing enough research to fully understand all this and making naïve investing decisions.
That post was almost 6 years ago LOL... I have bought and partnered with on a handful of properties and have grown my property management services. I'll give you a call Tuesday or Wednesday this week.
Hey! lol I did not notice it was that old, but I'll be waiting on your call!
My name is Joe Beilke and I am Firefighter, Realtor, and Newbie Investor. I join Bigger pocket a few months back when my wife and I decided to no longer allow the Salary bribe control our lives. We started the jump a few years back by getting our real estate licenses and working toward paying off debt and start saving money to invest. It's been 3 years now and we are ready to really focus on investing in Buy & Hold and Flipping. We have been looking a duplexes and the numbers just don't seem to come together well. So who in the area is having more luck than us and wouldn't mind a few free lunches and dinners on us to pick you brains. I also have a big pickup and I can move stuff! Anyway looking forward to meeting people from St Augustine, Daytona Beach, Ormond Beach, Port Orange and New Smyrna Beach. Maybe we can get together a have some networking group drinks!
@Joseph Beilke Welcome! 5 years later lol... How has everything been going for you? I am out of Port St. Lucie so not that far from you. Would love to connect!
I have not forgot about calling you. Lot going on with Milton headed towards us. It might only be CAT 1 by the time it get to us, but that still could cause problems. I reached out to all my tenants, buyers and sellers these last few days to help them prepare with their properties. I have tenant that is from CA that is worried, they're used to earth quakes and fires. This Milton is scaring them, little bit of hand holding too.
I have not forgot about calling you. Lot going on with Milton headed towards us. It might only be CAT 1 by the time it get to us, but that still could cause problems. I reached out to all my tenants, buyers and sellers these last few days to help them prepare with their properties. I have tenant that is from CA that is worried, they're used to earth quakes and fires. This Milton is scaring them, little bit of hand holding too.
Talk soon Mario!
Completely understand, and yes I would probably not be able to talk either. Trying to prep everything I can just in case. I've been seeing so many mixed feelings on it
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