All Forum Posts by: Brandon Wagner

The toughest thing in my mind, is people want A+ contractors for C- prices.  It leads to lots of troubles.  Once you get really busy (because you're good) you start charging more.  When you need the work (usually because you aren't as good) you do it for a discount.  This dichotomy leads to people being upset.

You can find cheaper contractors on Facebook Marketplace or in groups as well.  Look for ones that post their work and are proud of it.  Always get referrals/references too.  I know some as well I'm happy to pass along.

 1) If time is the big constraint and you aren't able to find many Multi's in your area, just work with what you can.  Starting small is always a good recommendation and that you can find in Berryville.  

2) There is no way around this, unless you're comfortable with buying a property off of a video walkthrough.  You can have an agent do this for you.  Most people who aren't experienced won't do this, so I'd try to remove this limiting belief.  Can the wife watch the kids for you for a couple hours?  Do you need to hire a babysitter for a couple hours?

3)  There are tons in the NOVA area.   I recommend GRID and Cashflow Breakfast Club.  

My 2 cents here.  A lot of new investors focus on all of the cons or reasons RE investing is hard. (especially in NOVA Area) If you do that you'll be like many others as you say who want to get started but ultimately don't pull the trigger.  Similar to the programmers you meet. Focus on the benefits and long term wealth created and it'll motivate you to take action and find a way.  It is not easy though and takes a lot of work until you've built up your teams/experience.

A deal means different things to different people.   If looking for cash flow it'll be very difficult to find in NOVA area without significant down payments.  If looking for something underpriced you'll need to find a fixer upper.  Anything in good condition will sell at market price.  

Just because you buy something under list price, doesn't mean it's a deal.  It could have just been overpriced to begin with.  So watch out for that.

Best way to find a "deal" is networking with wholesalers and agents or going direct to sellers. Check out some local meetups too.

My Take, Real estate in the current market environment is only favorable to stock investing when using leverage.  If you have a lot of equity in your condo, and not cash flowing, chances are you'd be much better selling and investing into the financial markets.  The best benefit of real estate is the appreciation, and your condo doesn't sound like it's doing super well in that regard.  

Most likely everyone on this site will recommend RE investing, because that's what we're all here for.  From your reply it sounds like you're over it and the hassle isn't worth it to you anymore.  I wouldn't overthink it. Sell the place and simplify your life.  Cash in the 8%+ returns in the stock market.

Hey Surafel, 

Maybe I'm missing something here, but I'd recommend determining an investing strategy based on your income, cash available to invest, time availability, location, and skills/relationships.  Tax strategists are great at saving you money when you have a good investment, but the first step is finding the good investment based on the criteria above.

If you acquire an STR that loses you money and makes a bad investment to save on taxes, you'll have bigger problems. (Don't let the tax tail wag the dog)

Hayden, 

Finances and differing opinions to me are the biggest risk in any partnership.  Everyone loves each other when things are going well. If the property or money becomes a problem, it can put a significant strain on the relationship.  

It sounds like in your cash that is a big risk to consider.  I recommend saving up some more capital before jumping in. When starting real estate investing you want to have some funds aside incase things pop up.

You also want complimentary partners.  AKA you both have different skillsets, knowledge, capital, etc.  If you are both alike, and just friends it can be risky.  

I'll toss my hat in the ring too.  Happy to chat and share my thoughts/insights. 

Starting out in the Flipping business, I recommend expanding further out from DC.  The price points are a lot lower, and it is less competitive.  (Although still competitive)  Think about 1 hour drive or so radius from DC.  Still enough people in the area looking for more affordable housing to be your end buyer.

Target areas with homes older than 1980 or so.  You generally want something dated that hasn't been fixed up in decades.
  

In the DMV area everything is competitive, but best way to get started is always house hacking.

You can get stuck in just determining which real estate investment strategy to use. Find one that suits your personality and your cash on hand ready to invest. Once you decide that it'll be a lot easier to find something your looking for.

Here is a general overview I consider.

Low Money, Lots of time, Go getter attitude

Wholesaling, Rental Arbitrage

Low Money, Little time, Generally friendly, willing to sacrifice comfort for future wealth

House Hacking, Long Term Rentals

Lots of money, Lots of time, Can hire out teams to do work for you. Good at building relationships

STR, Fix and Flipping

Lots of money, Little time, Good with numbers/analyzing investments

Private money/Hard Money Lending, MTR

To me it's just a numbers equation.  

Compare your monthly payment at the new rate in an LLC to your monthly payment with your current rate. Does the property still cash flow with the new rate? Is it enough to still be a good decision. My initial inclination is it won't be a good idea given the much higher rate.

I Would need more numbers to know for sure though.  Current loan/rate, house value, rental rates, cashflow before/after a refinance, etc.

If you want the LLC so that is gives you asset protection, it probably makes more sense to look at an umbrella policy instead. Those will cost you much less than a refinance, and give you some solid coverage.

If selling at lower price to yourself, have the agent record it as a family sale and not to use it as comps.  that can help a little bit at least.