All Forum Posts by: Brad Bellstedt

The referring agent should get 30% in my opinion. 25% is what you'll typically see and so what that they don't need to be driven around to see houses. That 5% of a commission on a $300,000 house at 3% commission is $450. That's $450 worth of your gas and time saved so the extra 5% sounds about right. Anything more than that, and that agent is asking too much. 

Hello Matthew!

As Franky mentioned, $100,000 is relative to your market. In some places that enough to buy in cash and in others that's just the down payment. 

VA and FHA loans are a great means of getting into your first place with minimal upfront costs BUT there will be mortgage insurance on those loans and those loans require the property itself to adhere to some requirements. There are many benefits to getting a "conventional" loan as well so you should definitely discuss your options with a couple of professionals. Don't be afraid to shop around a little.

There are a couple of different ways to "house hack" and only you will know which is the right fit for the lifestyle and return that you are looking for but some of the techniques you should take a look at are:

1. Buying a duplex, triplex, 4 plex, (can be purchases with FHA or VA loan so long as you live in one of the units) live in one, rent out the other(s).

2. Buy a single family home and rent out the rooms. A friend of mine bought a 5 bedroom for $200,000 in 2013 and rented out all of the rooms besides the master. He lived there for free up until last year. Today he rents it out for $2,300/month and it's worth about $325,000. So now he makes roughly double the mortgage payment amount from the rent and has $125,000 in equity. Not bad for 6 years... 

3. The BRRRR strategy. This one will be by far the most labor intensive because the goal is to improve the property, rent it out, and move again. (and again, and again, and again...) BUT if you're serious about building something to retire from eventually, this is something you should take a look at.

Check out: 

https://www.biggerpockets.com/blog/brrrr-buyrehabrentrefinancerepeatprimer

https://www.biggerpockets.com/blog/build-real-estate-portfolio-fast-the-stack

Hope that helps!

Can you put your numbers up? I'll take a look at see if I can find the snag. Your numbers may be accurate though. It's very possible to have a negative ROI if the rent isn't covering all of the expenses. The first thing that comes to mind is that you are not including the "rent" of the unit you will be living in. I understand you may not feel like you are paying yourself rent so you may not see that on your balance sheet but you should include what you could rent out your own unit for in your calculations if you're not doing so already. You're really counting that money saved as money earned. If you didn't own the building, you'd be paying rent/mortgage somewhere else for your dwelling so although you didn't make that money in terms of cashflow on a balance sheet, you are saving that money because you're not having to spend it for shelter elsewhere.

Hello Manoj!

The market here in Vegas has been pretty steady over the last 12 months. In 2016 and 2017 we saw about 13% appreciation each year. In 2018 it was about 7% and in 2019 we saw about 5.5%. Most of that was in the first 2 quarters, the last 6 months of the year didn't see much movement up or down for sales. Rent on the other hand has continued to increase and is increasing at one of the fastest rates in the nation due mostly to the great California exitist we are seeing of people flooding to Las Vegas. 

1. My prediction, the economy on a macro level stays strong and Las Vegas on a macro level will be right there keeping pace. Las Vegas is in desperate need for "affordable housing" but despite the flurry of new homes going up, most start at the 250 range at the very bottom. The Raiders are coming and Las Vegas in general has a lot of projects going on so I have no doubt that the market here will continue to be a strong and steady one. Unless a war breaks out, I don't see property values decreasing throughout the year. 

2. I'd like to be considered. 

3./4. How much do you know about the multi market here in Las Vegas? I ask because unless you're willing to take on the challenges of C and D neighborhoods and 30-70 year old buildings, you may want to look elsewhere or try a different strategy. I'm willing to walk this road if you are but I think you should be aware of what you would be getting into here. You CAN find multis that pencil out to 6/7+ cap rates but you shouldn't expect to find A neighborhoods and A-class tenant for multi (2, 3, or 4) plexus in Las Vegas. They stopped building those here 20-30 years ago and you won't find any in the more desirable parts of the city. 

Thank you. I'll start working on that. My apologies for the delayed response. Must have missed the notification. 

Sounds good! 

Hey @Jerryll Noorden, I'm a realtor here in Las Vegas and between my partner and I, we close 30-35 transactions per year pretty consistently and have for the last couple of years. For a multitude of reasons, I decided last year to start working more with investors as a realtor. I have learned a TON about the investing game and I've been bitten by the REI bug myself. Since then, I've purchased a second property as my primary and currently rent out the first property for 200% of our FHA loan mortgage payment.

I regularly comb through the MLS and run the numbers on properties in the pursuit of a deal that I can present to an investor (providing me the opportunity to be the buyer's agent now and possibly the seller's agent in the future) but as you know, that is the most competitive marketplace and deals are getting harder and harder to come by. For that reason, I've decided to branch out and look for more off market deals to make something of. I hate to call myself a "wholesaler" because most individuals who claim to be "new wholesalers" are a joke to the investor community, and I totally understand why, but my "means to an end" look a lot like what a wholesaler would do to attract business.

Currently I am combing the BP forums, (which is why I see so many of your posts) watching YouTube videos, doing some reading, etc. in order to build a business plan and to have an A-Z understanding of how it all works. I attended my very first REIA meeting on Wednesday which was a lot of fun, and I plan to attend at least 3 months worth of events, all in an effort to get an idea of what I'm getting into. The plan is to attract more seller leads and offer them multiple outs, including listing with us in the MLS. If I have the opportunity to lock it up as a wholesale or sub-to deal, I will and then pass it on to an investor. The idea is it's somewhat of a safe play for me to learn the intricacies of the transaction while getting paid to do so. As I go, and accumulate more money, I will begin to keep more and more of those properties for flips or a good buy and hold property for myself. I'd like to have at minimum, $5,000 of passive income from rental properties by the time I am 60. That's 27 years from now and seems completely doable.

Like I said, I am just getting started and am still in the information collection stage of getting this thing off the ground so I am not ready just yet to unleash the awesome marketing capabilities you seem to possess but I do now (and have for a while) have your name down in my notes as a future reference for traversing the acquisitions portion of the business. 

I don't mean any disrespect and I think if you re-read my original interjection in a different tone, you may perceive it as more of a genuine question.  I do however, see your point in my doing so on a public forum and I apologize for using the wrong platform. 

No "belittling." Tons of fakes out there and the screenshot I've seen you post a dozen times or more is the same one. Just making sure you're legit. Might like to work together in the future but before we (or before anyone works with anyone) some things need to be verified. Thank you for verifying. In the future, don't be a dick about it. It's not a good way to attract business..."fyi"

That being said, I am interested in how you do what you do and how I can do the same. 

I see this response from @Jerryll Noorden a couple of times a day but I'm noticing it's the same 3 month old screen shot in every response. Do you have an updated version of that screenshot?

Do you have an idea of what strategy you want to use? The BRRR strategy is a good one for getting started.

I just moved and received a piece of mail for insurance coverage for just such an occasion. I figured it's gotta be pretty rare here in the desert but maybe I should do some more digging. Anyone in Vegas ever have this problem?