All Forum Posts by: Aaron Hale

We all know that the sale price of a property is arbitrary until put into context. Here’s an article I coincidentally came across today:

https://www.foxbusiness.com/features/looking-for-a-home-under-100k-better-head-to-ohio-report-finds

 Would you have any recommendations for lenders offering bridge loans with fair rates? I’m buying in Ohio. Do I need to be searching locally? 

 How could I learn more about a short-term rental program? 

I'm looking at a few potential multifamily deals sent to me by wholesalers. I know they want to move quickly and cash, HML, or private money are usually the main or only accepted forms of financing. However, are there other options? If a property is 100% occupied, would aHML be interested if I can't do an immediate rehab?

If I did choose to purchase this package deal, what are some methods to finance it? 

I’m looking for the same. I’ve got one door in North Canton (Green) and wish to expand. If I come across any trustworthy wholesalers, I’ll pass their contact info along.  

Hey BP,

I’m looking at buying my first multifamily property and wanted to get all of your thoughts on a few of the facets on one particular deal.

It is a n out-of-state combo deal with two duplexes . I have boots on the ground that got a walk through of the buildings and gave me their assessment...

Both properties are fully occupied and renting at the market except for one apartment which could come up some. They are in  aC-D neighborhood but have long-term renters. I think one has been there for over 20yrs! The PM I had do the walk through said each of the tenants had their places neat and orderly and seemed to be model tenants. However, I’m sure part of that was the notice that there would in fact be a walk through in conjunction with my suspicion they’d rather take their chances with the next owner than the current so their on their best behavior, so to speak.

The current owner has deferred maintenance for quite a long time to the point that there are probably some major violations. The roof is in dire need of replacement as well as the windows and all mechanicals. Nothing cosmetic has been done.... ever? Chipping paint, plastic light fixtures, etc. Both buildings need complete rehabs.

So, here are the things I'm wondering... Are money pits a good deal if they're cash flowing and you can find the right selling price? Currently the wholesaler is asking far more than they're worth to me, but the rents being at market and already occupied is attractive. Being occupied also means that I could structure and plan rehab piece by piece rather than all at once. That also means that I couldn't do a quick BRRRR.

If I can negotiate a more appropriate price, what are some methods by which to finance this deal? The wholesaler will want to make it quick; cash, HML, private money. Would a HML care for a transaction such as this?

Simply put, can you pull off a BRRRR when one of the Rs is out of order?

Aaron, I’m not sure what more I can add that others above haven’t already said. Listen to the podcasts and read the books. Brandon Turner’s books are hands down the best and easiest to digest books on real estate investing I’ve read so far.

As far as getting your license, it would only make sense if the savings you make on commissions exceeds the license fees. 

There’s a lot of sage advice and at least one less than constructive admonishment here, but your choices seem to be simple, dig into the numbers and figure out the problem or sell to recover what you can.

Simply selling may be the easier way out, and may be the best course of action, but you won’t learn as much. You may even decide that this experience has turned you off to real estate investing altogether.

However, rolling up your sleeves, digging into the numbers, visiting your properties, meeting with your PM and other PMs, knowing the numbers, and knowing the market will give you a greater understanding of how this business works. You’ll know exactly why your properties perform the way they do and how you can effect their performance. If treated like the learning experience it could be may be the catalyst that propels you and your wife into a new echelon of real estate investing.

You may still decide that selling is the right answer, but you’ll know why. I’m originally from Akron and invest there. I’d love to know more about where your rentals are and the numbers behind them.

Welcome! You certainly have plenty of options. I think the first thing you should ask yourself is what strategy you want to peruse. The house hack is definitely a great way to build up cash flow quickly. If you go with an AirBnB, be sure you are aware of the local restrictions on real estate arbitrage as many municipalities are tightening the screws on AirBnBs. Have an exit strategy whether that’s to sell or rent long-term.

Whichever plan you choose, you’ve at least got a solid first step with your current rental. Good luck!