All Forum Posts by: Alec Marquette

Hey guys, I have some experience buying and selling vacant land, finding deals and "wholetailing" them in rural Midwest and renovating a duplex in the Midwest.

My goal is to move into larger properties and begin to raise money to fund deals working with partners. I am a full time firefighter and do investing/renovating houses (my house hacked duplex) on my off time. I have a goal of having enough passive income in 10 years from RE to be able to walk away from my full time W2 if I wanted to (I do love my job). I'm kind of stuck as to how to move on to bigger and better things. I don't have the funds to move into bigger multi family deals nor feel like I have the know how. I have read/listened to Brian Murrays book crushing it in apartment/commercial RE. 

I have a fire in my gut that I need to get this snowball rolling. I live in the Milwaukee area which is south eastern WI about 2 hours north of Chicago. If there are any established multifamily/commercial investors who are looking for someone to do cold calling or deal analysis I am more than willing to volunteer my time in exchange for the experience and knowledge. Not to boast but I do feel like I am skilled in talking to people and have always been drawn to closing deals and the sales aspect of RE. I come from an entire family of salesman... I am always listening to self improvement/personal growth podcasts/audio books and I am just looking for an avenue to get some traction! 

Again if anyone who is looking for help in their multi-family (greater than 4 units) or commercial investing business I really believe I could be an asset right off the bat. All I'm looking for is knowledge! If anyone has any advice on house to navigate into this field of larger MF/commercial deals please I am all ears. I am just getting tired of books/podcasts etc.. 

@Steven Warner @Pratik P. @Marc Winter @Jermaine Artis Thanks everyone for the replies. I have been doing my homework over the past few days looking at comps and estimating rehab costs. I discovered that it is currently an FHA loan with around 5% interest. The house needs a lot of cosmetic work.. but other than that I am still not sure. I am looking into an inspector going out to the property to tell me what's up. Also, comps are telling me the ARV should land from 210-230k. That is with me taking out 1 bedroom because there is no egress window and no finished basement. I should be able to rent for $1600.00/monthly. The current basement is finished but it is a disaster... I just bought a book to help me with estimating rehab costs so I can use the math to make a better decision. I also need to decide what financing approach would be the best to keep closing costs low and refinancing easy. Sub2 is hard to wrap my head around. I am unsure of how the refinance process would work with a sub2. Assumption of an FHA loan wouldn't let me be an investor without occupying the place, so I couldn't rent it out until we would refinance?

@Marc Winter thanks for the advice! I have never heard of the 'subject to'. I will look into it!

Hello BP. I currently am trying to decide how I should act on a deal that fell in my lap. My future Mother in Law is moving and wants to sell her house. For some reason, she is intent on selling it for what she owes on it (I think she is just trying to help us out). We told her to sell it for market value and she said if we aren't interested she is just going to contact a house flipper... She says she owes approximately $143k. She bought the place in 09 for $165k and the zestimate puts it at $190k. Looking at the comps I think it could list safely for $178-180k. Either way it is definitely below market value at $143k. It is a 4 bdrm 1400 sq foot house in a decent school district. the detatched two car garage is in rough shape and I still need to get an inspection done on everything else.

I currently have about $5,000.00 in cash available to me that I could use on this project. I also have $10,000.00 that my parents stated they would contribute as a gift for my first house (they've done that with all their kids). I have a credit score over 750 and about $9k in student loans. I make about $67k/year from my W2.

I should be able to bring together $15k in cash to get this deal off the ground. But then what should I do? My plan A is to rehab with private money/hard money, rent it out ($1600/mo), and then cash out refinance to hopefully purchase another property(brrr) and slingshot my REI career. I currently do not own any properties.

Another option I was thinking is to do an FHA 203k loan to rehab the place, live there a year, and then possibly do a cash out refinance then? I am not sure if that is entirely possible and who knows where the market will be. I also don't really want to live where the house is located.. I could do it but just wouldn't be my first choice.

Another question I have is how can I leverage the equity she is gifting us in the selling below market value? 

Any advice is appreciated!