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All Forum Posts by: Andrew Powers

Andrew Powers has started 7 posts and replied 295 times.

Post: Tips For A Slow Market

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

Fyi since there's less inventory on the market, that means there's more people buying them aka hot market, not slow... there's lots of demand everywhere.

What's wrong with the 38 properties on the market? Is your criteria too strict? 

If you want to find an off market deal, yes those methods work but it takes time and effort. People often systematize those things to get results. 

Your desire to reach your goals will dictate your actions. I suggest reflecting on your situation/ goals, why you are looking to buy a property, and figure out what steps you can take everyday day to get the property. Set aside a time block everyday to cold call, etc. Hope this helps

Post: No W-2 Job, Is all I need a Cosignor For First Investment Deal

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

Lenders have different rules so talk to multiple. Some require the cosigner to live in the property, others don't.

For simplicity of the deal and learning the ropes, using traditional bank financing is best. But you can also get creative with financing if you want... I suggest a BP forum search for methods.

Post: First time buyer ~ Understanding lenders and how to start out.

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

There's alot of lending options for conventional lenders and non conventional. For conventional lending, there's many low down payment loans (FHA 3.5%, conventional 3% first time home buyer are examples).

For non conventional there's seller financing, hard money, private money, lines of credit, ...... many more.

As you listen to the podcasts and read the forums, write down in a list what you hear for strategies. Talk to multiple lenders to figure out what options you have (each one is different). 

Post: Advice On First Rental Property

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

Getting yourself into it, learning the processes of rei, getting yourself familiar with the city are all important factors, especially with the first one. Are you running your analysis conservatively or marginally? What is your risk aversion and do you have reserves to cover yourself if things go wrong? Realize every property won't perfectly hit every criteria, often small sacrifices are needed for your big picture to happen

Post: Rent by the room or by the unit

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

I house hack with rent by room. It is more management intensive but often more profitable than renting out the whole house. If someone leaves, the others cover the mortgage.

It's more management intensive because each roommate has their own lease and also shared common areas. There will be more times you have to on and off board tenants. If there's problems in common areas or between roommates, alot of times the landlord ends up getting involved. These challenges can be mitigated with solid lease and roommate agreement documents. Have language about keeping common areas clean and clutter free, you must clean and put away dishes within xx hours, etc. Setting the expectations up front is important.

I suggest to analyze the property as a normal rental and rent by room. If either works, you have options. Or if only rent by room works, can you look at this as your entry into real estate and realize it will be a little more management?

Post: Attending School & Purchasing a Rental

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

If you house hack, your living expenses will be reduced or eliminated and you may make some extra money on top. Make sure to analyze houses your are looking at with reserves for repairs, vacancy, etc so that rental income will cover these things. See the BP calculator to analyze properties and for tutorials. 

For the traditional financing route, it's easier to get a house loan before accumulating more debt as lenders look at your DTI (debt to income) ratio... if you buy a house after school, you will have more debt, though your income after school may be able to offset it. So it depends on your personal situation.

Either way, interest rates are low and house prices tend to climb with time. Consider also if you buy now, you will start learning about real estate quicker than delaying yourself 3 years. 

Post: Looking at a SFH with unpermitted basement bed & bath

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

I suggest talking to the building inspector in your area and say you are looking at a house with some unpermitted basement work. They can tell you what steps to take to make it permitted. Check to make sure living space is allowed in a basement in your area. Also check with zoning to see if you can rent the basement (if it will be a "seperate unit" from the main living area).

As far as value, I have put offers in on houses with unpermitted work... but subtract the square footage where unpermitted work was performed. Sellers are going to say things in their benefit, though people are currently buying anything that comes on the market so it's not doubtful. Either way get the info from building/ zoning departments and counter offer based on that and your risk taking level. Good luck!

Post: Beginning with no funds i need advice

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185
Originally posted by @Curt Smith:

I agree with Alexander re BPs book on creative financing options.  Although that book was a bit over view.  One could not learn Lease Options just from THAT book, but its at least a start.

I bought my last 2 houses for $3000 each,  3 bed, 2 bath 1400 sqft, one was 4 sided brick, 1977 for both, in great rental neighborhoods, bla bla.  Can you afford to scrape together $3000?   I bought each "subject to the existing financing" and my only costs where atttorney fees to close and in one case $2k to the seller to move out into an appartment.

I suggest you join your local REIAs (real estate investor associations).  Locals know what works and where.

I suggest you watch you tube videos (dozens and more) on subject to, wholesaling lease options, buy other creative financing books.

Its ok to pay for education!!!!  In in the lease option space:  I like Joe McCall, Joe Bodeck, John (?? in TX)..    Subject to is a side gig off finding sellers willing to sell on a lease option.

You make money in real estate 2 ways; with tons of cash including cash from banks, or with knowledge. I've transitioned 100% from cash to creative ways to buy houses. Even though I'm sitting on a mountain of cash, I just prefer the interesting aspects of creative financing plus you actually are helpig more sellers get out of stuck situations that an agent actually can't help with (low to no equity). Best to your start in REI.

I agree and to add, you can get into real estate with money, knowledge, and also hustle. If you can be the one in the field finding properties, rehabbing, or property managing... those are desirable skills that someone out there wants. If you don't have these skills yet but still interested, keep studying and you can also work for professionals in those areas. Good luck!

Post: Strategy revaluation/Deployment of capital

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

I agree with other posts. Also to add is you can partner with someone where you are the money partner, become a private/ hard money lender, or participate in syndication.

Post: Where to start in real estate

Andrew PowersPosted
  • Investor
  • Cincinnati, OH
  • Posts 304
  • Votes 185

Welcome to BP! Keep learning through the forums, podcasts, books. I recommend to read the BP Ultimate Beginners Guide. As you learn, see what you like and start investigating different options. Also assess yourself and understand what skills you have, what you like to do and not, and how that can be applied to real estate. I recommend finding a real estate related job that you can grow your skills and network. If you don't know what you want, keep trying new things or even work for free for someone in real estate. Alot of times it helps to not ask someone for a job, but to figure out what they need (study them on social media or BP) and then provide them with your skills and time. If successful, that proves you are worth their time.

Last piece of advise is to be patient! Going through all of this and figuring out your direction takes time and it's different for everyone. Good luck as you go through the process!