All Forum Posts by: Bryan Balducki

@Michael Cote I believe this will work in most cases though it could vary from state to state...and needs to be done in a timely manner, based on the dates in your offer. Make sure your lender is on the same page and if you need to back out, have the lender fill out a letter explaining that your financing fell through. Although it seems a little dishonest and was once considered taboo, in this competitive market, it has become more common. In a way, your financing did fall through because you now need it for the other property. I would recommend you always check with your lender and agent to confirm this is okay.

@Shrey A. I don't believe appreciation is required, though both active and passive appreciation will help out. In my opinion, your savings rate will have a big influence on your ability to scale. I like how Brandon Turner explains the stack method. Start with a single family, the following year get a bigger SFH or a duplex, then the next year a triplex or even bigger SFH. Now you have 3 cash flowing assets and can afford even bigger investments. The idea is to also not let income creep get in the way and live a frugal lifestyle. If you work a day job, save as much as possible from that income source as well, so it is easier to afford the down payment. Just keep stacking and you'll be scaling. Even if it takes longer than a year for each property, you will eventually get there by being persistent and saving consistently. You can do it!!

@Jordon Milford with that kind of equity, personally, I would pull that money out and reinvest it in a cash flowing asset. This could also lower your risk of a lawsuit on either property. Make sure you are legally protected and I am not an attorney so this is not legal advice. That cash can do more for you by being reinvested, assuming it is the right investment. Crunch the numbers and see what makes the most sense to you. Hope that helps with your brainstorming!

@Ian Hennis the numbers seem rough on this one but I can’t see the full picture. Make sure you factor in vacancy, taxes maintenance and insurance. It also depends on your goals as an investor. Are you looking to cash flow or are you okay with breaking even? Are you comfortable with a pure appreciation play, because that can be risky…Can you rent out by the room and increase the rental income? Or can you short term rent it on Airbnb? Also, seems like a large lot…could you add an additional dwelling unit? I don’t know your market but definitely work the numbers before you jump on this deal.

@Carl W. Licensed or unlicensed, I’d always look at referrals. Make sure that you are hiring someone who it trusted by others. For bigger jobs, I’d go with someone who is licensed, but for smaller handyman type jobs, I don’t believe a license is necessary, it is more about the persons previous work and references. I’ve used both and have saved a ton of money using my unlicensed handyman. He did mud jacking, electrical fixtures, and built a closet…but this handyman is also a family friend and we trust him. For my water heater replacement, I decided to use a licensed worker…now would I have used an unlicensed worker for the same job? Yes, if I trusted his references and experience. More risk=less cost, choose carefully

@Troy Coroles I would reach out to an investor friendly agent or a few, a few lenders, a few contractors, like-minded investors, and a few property managers. More importantly, I would hit a local real estate investing meetup which makes this process easier. Network with everyone you can and make friends! It’s all about relationships, which is why I love this industry so much!

@Garrett Gahn social media is an amazing resource for agents. Post consistently with organic content. Show what you are doing on the daily. Reach out to investors and like minded individuals. Build relationships like crazy and network at meetups. This business is all about relationships. There is plenty of business to go around so no need to be so competitive, we all can bring each other up. Call friends and family daily and tell them what you are doing, you will be surprised at how quickly people start reaching out to you. Learn the ropes so you feel confident talking to others about real estate and then talk about RE whenever you can naturally. Let your passion take control. I am a realtor in Denver so feel free to reach out. Love connecting with others!

@Jesse Fenton you could be the boots on the ground for an investor that has less time. Many experienced investors will hire younger less experienced investors to help with the hard work/property management/rehab etc. You may have to offer your services for free at first or you may be able to share some of the profits with the money partner. I’d network as much as possible and see how you can help someone more experienced. Reach out and ask what you can do for them!

@Jayden Hamilton I would continue to network on BP and go to investing meetups. You could meet a partner, or joint venture in which you could put that money to work. I’d look into multi family investing and talk to a commercial lender. One multi family deal and you could be set. Sounds like you already have a track record so that will help! Or you could become a realtor and use your commission to partner on deals with those who have W-2s. The world is your oyster!

@Eddie Torres make sure the HOA has no rules against rentals and that there are no upcoming special assessments. HOAs can change rules over time so be careful and do full due diligence. This could be a good opportunity if they do cover landscaping and structure, as that will just lower your monthly cost over all.