All Forum Posts by: Bo Black

Coming from a contractor stand point, there may be more than dollar amount issues. Us in the construction industry are not only dealing with extreme price escalation, but also extreme material lead time. It can take months depending on the material to receive it, and if you want it expedited to meet your schedule, you have to pay for it.

It sounds like the contractor was not thorough and did not communicate well, but these are hard times predicting costs and schedules. The contractor has to wait to order material until he has a contract, and by the time the contract is executed prices may have jumped putting everyone in a bind.

I would ask the contractor for quotes from suppliers before the contract was executed and immediately after.

Best of Luck.

I am kind of in the middle of two markets in which I want to invest in. One being a market that has had great growth and appreciation, but high prices causing low cash flow. While the other market has relatively low housing price with slow appreciation but rather good cash flow.

The market with faster appreciation and lower cash flow is a college city, and the market with good cash flow is an industrial city.

What are you going for?

I understand the thought of being debt free, and the stress free benefits of it. But there are ways of leveraging safely. If you invest properly and ensure you can produce a positive cashflow with reserves along with appreciation you can grow immensely faster. You could start with leveraging 50% with setting $5,000-$10,000 to the side per property for a reserve. That allows you to get twice as much as you would if you paid all cash with reserves in place.

I would say, one of the best parts to investing in real estate is the ability to leverage deals, so I would consider using debt on real estate to maximize returns. But at the end of the day if you are okay with slow growth for the mind set of being debt free than do what you feel comfortable with and will make you happy.

Hey everyone, I am looking into learning more on seller financing options. From approaching a property owner to structuring a deal to different types of seller financing options. What are the best resources to learn from.
Thanks in advance!!

@Juan Campos

The credit union I worked with did an in house loan which allowed me to drop PMI if I went this route. It was a local credit union here in eastern Iowa.

I saw this property was for sale when Covid began and it never sold because at that point people were not wanting to invest with the eviction memorandum, so I reached out about 6 months after the property never sold and was able to work out a deal.

@Juan Campos

Absolutely, I did this as a straight purchase, and was able to acquire it off market where I did not have to compete for it. The gross rent multiplier is $105. I foresee rent going up in the near future beating the 1% rule. I met with many banks and credit union, to find the best financing option for me. I was able to purchase this as a "primary residence" since I did not own a house previously, and by purchasing it as my "primary residence" I was able to put very little money down. I have a 10/1 arm on the property with a 2.85% interest and no PMI.

Closing costs are right about $5,000

I will be renting the one have out and I will have a roommate on the side I live in with me. So, with living in the property, I will not only live for free, but will produce a positive cash flow.

If you have any more questions let me know. Through my experience if you are open to adjustable rate mortgagees, you have a solid credit score, and you purchase it as a primary residence you can avoid large down payment. Some lending institutions wont allow a duplex for a "primary residence" so go to as many institutions as you need to until you find what you are looking for. 

I hope this helps.

Hey everyone, I am new, but eager to keep learning more about multifamily real estate investing. Recently bought my first duplex, and continuingly working to grow. I wanted to see what everyone's thoughts are for best conferences or seminars for someone newly investing in multifamily real estate to learn strategies and new ideas when it comes to investing. I am located in eastern Iowa so would love something in the Midwest, but also open to traveling for the opportunity as well or virtual seminars. 

Thanks in advance!!