All Forum Posts by: Ben Firstenberg

I'm not sure if raw land counts as a "lifestyle" property, but I do love the idea of investing in land. Even if it's way out in the middle of nowhere.

The way you compete is with creativity, hustle and consistency. 

Can you figure out new ways of doing things? Can you find ways to be better than others and see what others don't see?

What are you willing to do that others won't?

Can you show up and do the work every day for months, years, decades?

Digging deep, answering these questions and putting the work in will undoubtedly set you above the rest. Maybe not today, maybe not tomorrow, but it'll come. Best of luck

HELOC would definitely be an option. I've worked with people who have used HELOCs to buy rentals.

I think the reason their fees aren't adding up is because private lenders are sometimes willing to lend on deals that banks will stay away from. If you don't have super great credit or you don't have a lot of experience, a private lender will charge a premium for that. I'm not sure your situation (don't want to insult your credit!) but that's my best guess based on what you said. 

I think the best place to start is with the agent. You need a good agent who can find you solid deals and help you understand different markets and neighborhoods. 

That agent, if they're truly good, can help you fill out the rest of your team. In addition to the agent, you'll eventually need a lender, contractor and property manager. Although if you're interested in flips you probably won't need a PM and if you have cash you won't need a lender. Helps to know both, of course. 

As far as what to look for, I think it helps to narrow down your criteria first. How much can you spend? What strategy are you looking for (sounds like flips)? How much risk are you willing to take and how much return are you looking for? Get as specific as you can. 

Not sure where you're located, if you're living or looking to buy in Georgia feel free to reach out!

Two things about this.

First, in general MOST properties aren't going to be good rentals. The life of the investor is a life of searching through all of the bad deals and opportunities to find good ones. Even the very best have this problem, so don't lose hope there. As you get better, you'll start to develop a better understanding for what's a good or bad deal without having to go through a whole analysis. 

Second, with debt as expensive as it is and values as high as they are, even MORE properties are going to have trouble making the cash flow work. Interest rates are so high that a lot of deals aren't going to look very good. Seller financing may not even help you that much, as the seller will likely demand an even higher interest rate than the bank will. 

It's just a tough time to make deals work and if you're going to find good deals you have to be prepared to search hard for them. 

If you're looking for working capital I think that's your answer right there. 

I would hold if: 1) the property can cash flow 2) You have faith in the investment for the next 5-10 years. Unless both of those are true, sell. 

I think it's not a question of how many lists to subscribe to or anything like that. It's finding a really good wholesaler or agent. One person who knows what they're doing can find you 3 good flip opportunities by the end of the year no problem. 

I agree with Nathan, it's not unrealistic at all. 

I think your success will be determined by how solid your financial base is. I bought my first rental using more or less all of my savings (if you include renos for the units) and while I'm glad I did it, going all-in like that has delayed my ability to get another deal done. 

However, if I had an extra $25-50k in the bank it would be a much different story.  

I do like how you've built in escalations to force yourself to higher levels and bigger properties in the later years! 

Elias, just sent you a message. Let me know if I can help!

I wouldn't let it stop you. All a recession means is it's going to be harder to find deals that make sense. Rents might go down, values might go down and interest rates are already high. But if you find a deal that makes sense don't be afraid to move on it!

When you're dealing with small multifamily, the macro economic trends effect you a lot less. I won't say not at all, because they do have some impact. But it's different than if you were a multi billion dollar private equity fund. 

So just be smart, don't try to force it, wait until you find a deal you like and then make your move.