All Forum Posts by: Ben McMahon

Winchester is probably the main area, but you can even go up to Martinsburg, and follow 81 all the way down to Harrisonburg.  I do most of my stuff in Front Royal, Strasburg, Stephens City, and Winchester

@Stacy Weng  If your interested in getting started in that area talk to @Ben Ferri  He helps me find stuff 

@Ian Lockwood  Im all about it!  

@Stacy Weng I do all my investing in the Shenandoah Valley because its about half the price of the NOVA market. Primarily in Front Royal and Winchester.   If you want more info PM me.

Im sure this question has already been asked, but has anyone bought into a franchise?  I have a small property management company, but would love the support and systems of an established brand.  Any suggestions of different franchises would be great.  Ideally best value for my dollar.  Naturally.

@Lane Kawaoka   What type of "big kid" stuff do you think is worthwhile right now?  The cap rates are stupid low on apartments right now, and if the economy dips at all you will be swimming in it.

I have a small Portfolio of SFH. About a dozen. They are good because I own a management company that can handle them, and the income is respectable. It took awhile to build, and I would love to hear some opinions on building it faster. Here are my obstacles

1) Capital - Always an issue. - UP until now, I have used Private investors to fund my deals with cash, I refinance, and pay them back with interest.  The process is painstakingly difficult with the banks, and truly hate dealing with them.  Also, the margins are tight paying a 10% interest to my private investors.

2) Good Properties - I find it hard to invest in areas outside my immediate geography.  Since paying management fees eat up most of the income.

3) Paying myself - I have plugged people into my system so that it mostly runs itself.  I have my construction guy, a real estate agent, a property manager, and accountant.  So I am primed for bigger things.  It seems like I always have the money to pay my people, just not myself.  

Thanks BP

@Barry Wilbanks @Dave Carpenter

Hey Barry, I agree with Mr Carpenter. Probably the best option in your case is to find a local flipper on BP or your local REI and offer your services. If you help someone in that way, you can work your way into partnerships. Not to mention, you will most likely have some access to capital through that channel as well.

Another approach for funding is to ask.  Ask a lot, ask a lot of people.  There are tons of resources here on BP, but if that seems intimidating to you, ask people that you know.  My first flip, I asked 10 people who I thought might have 10k available.  3 said yes, but I needed 60k.  So I ended up asking them all for 20k.  All 3 said yes.  I would have asked 20 if they didn't.

You never know who has money, and who might be interested in investing until you ask them.  Its no pressure, just let them know what you are planning on doing.  Leverage your current network, and you might be surprised who comes out of the woodwork.  I didn't think anyone would give me more than 20k when I got started, but I kept asking.  All 3 of the guys I started with on my first deal are still investing with me.  One of them has 1.6 million in cash invested with me at this moment, and is about to invest more.    Point being, you just don't know.

But he didn't just hand over that cash day one.   It started with the first deal and the relationship grew from that.

@Barry Wilbanks   You ready for a success story Barry?  I've had a hammer in my hand since I can remember.  My dad is a carpenter, brothers are all in construction, uncles are all construction workers, ETC.  The only person that I knew who had money growing up was my uncle who was a cranky old attorney, and i hated that guy.

YOU absolutely can make it happen in Real Estate.  I did.  I'm 33 now and expecting my 6th kid.  Yes all from my wife, and no, Im not crazy.  Well...... maybe crazy.  

I bought my primary residence in 2009 and have been buying, selling, flipping, holding, commercial, residential since than.  I had no money, and no credit.  No mentors, NOTHING.  If I could do it, anybody can do it.  Seriously, you can develop the skill set.  I takes a ton of work, and is not going to be easy.

So go do Barry!  Its freakin awesome!  I have been able to hire my friends and family members to help me the whole way, and you will be able to do the same.  

Pretend like you run a property management company with 500 units, and run things like you would with all the others.  I started a property management company so that I could manage my own properties.  Its not that hard if you have good tenants.  Its really hard if you have bad tenants.  

More actionable advice would be to set up an online paying system.  You could even use paypal if you wanted.  Saves a bunch of hassle.  Also, have your handyman picked out and on call.  I will tell you, that its very rare to get a call at 3 in the morning.  Almost nothing is an emergency, and if there is, they should probably be calling 911.

If you have bad tenants, they are professionals with a sob story.  DO NOT get suckered into listening to that.  They will pull everything out, mom was sick, baby had to go to the hospital, husband lost his job, had to visit my aunt in Cananda, car broke down.  Doesn't MATTER.  Its right and just that you are paid for them staying in a house you own.  Im a generous guy, and there is no place for generosity in property management.  

I know that all sounds harsh, but if you aren't up for the challenge of being hard, than you need to hire that out.  I GUARANTEE that you will be taken advantage of at some point if you aren't vigilant.