All Forum Posts by: Caleb Webster

@Tyler Combs It's for a flipping business but also hoping to buy a few rentals in the next few months as well. Since the flips are done through an LLC I figured it was about time to get a separate account for the LLC. Would you recommend separate accounts for flipping and rentals? 

I don't anticipate high transaction volumes nor do I pickup properties through auctions (yet). I like the idea of having an account with a bank that is also a portfolio lender since it seems like they would be more favorable towards me. 

@Account Closed Any updates on your flip? I'd love to hear how it went!

@Tyler Combs Potentially yes, I've heard that lending agents are more favorable towards you if you have an account with their bank. That said, I lean towards using a credit union for a business account but as @Zach Davis mentioned, they usually have very little cash on hand. 

I need to open a business account with a bank or credit union in the Portland/Vancouver area, who do you use and would you recommend them? 

Nice work @Jeff Filali! Have all of your purchases been local?

Have you looked into other RE markets? You can buy a 10-15 unit MFR in the $500k to $750k range in many cities in the Midwest. The ROE would be relatively similar once you have all your systems in place and a team that you can trust.

@Corby Goade No I haven't, I'll check it out! What cap rates are you seeing on average?

@Lane Kawaoka Definitely agree with you on cash flowing properties when starting out. I couldn’t find anything that I felt truly comfortable with on the West Coast so I’ve started looking in the Memphis area. The reason for purchasing a flip locally is to familiarize myself with the process while learning hands on so that I can eventually apply what I’ve learned long distance. 

What markets are you investing in currently? 

@Tara Ballenger Sorry for the terribly late response! I didn't end up making an offer. In fact, I've pretty much given up on finding a buy and hold property that cashflows in the Portland area. I've transitioned my strategy to looking for flips in this area while buy cashflowing properties in the Memphis area.

I've heard that once you're in the business long enough, you can feel comfortable enough about a deal to make an offer without ever having laid eyes on it. This seems hard to believe for me since I'm still fairly new to REI but I would like to get to that point since I'd to invest out of state. I'm interested in a buy and hold strategy but feel free to chime in on what you look for in flips as well.

So, assuming the numbers checkout, what questions do you ask your broker if you can't get a physical tour? Are you looking at cap-ex items, neighborhood, tenant history, etc.? What do you need to know about the property before feeling confidant enough to make an offer?