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All Forum Posts by: Benjamin Aaker

Benjamin Aaker has started 15 posts and replied 1495 times.

Post: New Member Introduction

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

Hi Craig, Welcome to BP.

You already have some contracting experience and that will help you in looking at properties and negotiating with contractors. Finish reading those books, start evaluating deals, and be ready when you find the right one.

Post: Introduction Network Learning

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

Hi Joe and welcome to BP! I recommend to start researching deals right now. Just have a look at Zillow and Apartments.com. You don't have to buy anything yet. Just start analyzing so when the right deal comes along, you know it. Good luck!

Post: Have funds, but need advice

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

People who decline to invest because 'it's a seller's market' are unwilling to put the work into finding the deals. They exist but they are more difficult to find in 'a seller's market'. A college town? Split up a house into rooms and rent them to the students. Make sure your zoning allows, though. Sure, prices are going up, but so are rents. You are buying a machine that makes money and over the course of a few years, you will likely make back anything extra you paid because 'it's a seller's market'.

Post: Buying a multi family lot

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

Also make sure there is demand for duplex rentals in Phoenix (I suspect there is). Very costly to build right now but if your financials are good, as a long term hold, it's likely to work. Construction costs are unlikely to go down any time soon.

Post: Creative financing advice

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018
The same entity that sold the property has to be purchasing or investing in the new property. If this is an LLC, then I agree, finding a lender is difficult because you will be looking for a commercial loan, one not backed by the government. Banks are really tight on those right now because they look at the property's financials, not your own. They see the rental market as risky right now and worry about the risk of lending. I'd speak with a specialist. I use Exchange Resource Group. ERG1031.com

Post: First rental turned out to be negative cash flowed.

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

Negative cashflow isn't fun but it's just the profit and doesn't always have to be positive. An investor might accept negative cash flow for a few years in order to build equity for a reposition later. They might even be speculating on appreciation (which for most is not a good idea). You are still building equity in your property. Trying to sell now will probably give you a loss as you will be paying some title work and commissions. If you have the finances to hold on it might be a good idea to sell later. It's unlikely you will have year after year negative cash flow. Rents will go up, you might refinance, and get most of the repairs completed. That low of cash flow isn't great but don't kick yourself too much. It's a good learning experience.

Post: Will Forbearance Plans Lead to a Tsunami of Foreclosures?

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

The bigger picture is the optics of having a bunch of foreclosures this soon after 2008. The federal government will make moves it thinks will prevent that (for instance extending the foreclosure moratorium or continued stimulus). Ultimately, the government will be financing these moves, purchasing power will decrease, and getting a mortgage will get difficult again. 

Post: Will "cash offers/as is/close quick" be close to market value?

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

You can negotiate on price or terms. One of those terms is cash vs financing. Getting cash is important to some people as they can sell their property faster and don't have to worry that the buyer won't be able to get a loan. This buyer is trying to find people who need cash and speed. If you are one of them, then certainly give them a call. We don't get something for nothing, so the offer price will be lower than market value to compensate for the fact that you will get a cash offer. That's not a bad thing, but might not be what you need.

Post: 7-Plex sold in Sioux falls

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

Congratulations Adam! It's nice that these deals are still out there in Sioux Falls. 

Post: Newbie to Sioux Falls, SD

Benjamin Aaker
Professional Services
Pro Member
Posted
  • Rental Property Investor
  • Brandon, SD
  • Posts 1,508
  • Votes 1,018

Blaine, welcome to the area. There are still deals to be had here and we have had solid growth for a long time. We've got plenty of investors here willing to help.