All Forum Posts by: Calvin Beeke

@Taylor L. great question. 

I am an active investor approaching 100 units. I also flip 1-2 homes per month, but I am wondering if my efforts and experience should be focused on syndication and larger multis, so that is the direction I am looking for! I want to learn from an active investor perspective. 

Hi, 

In 2019, I would like to attend at least one or two Real Estate Education Events focused on multi-family, syndication, commercial with an INVESTOR focus. So many events have an agent, newbie, or wide focus. What national, in-depth, laser focused events or conferences should I be attending in 2019? 

Thanks! 

@Chris Smith - I am not sure on that one. I know reviewing my PFS was the first thing they did so my guess is they assessed net worth and found it acceptable. I have a number of other rental units with considerable equity, so I am assuming they liked what they saw. 

@Hayden Aquilon - No, long story there too. Originally they said 30% minimum. I couldn't do that and didn't like that. I offered a free and clear duplex as collateral. They gave me a vague ok and said they would pursue the 20% with that. In the end they offered me 25% with no collateral or requirements of any sort. I made it work. I imagine after a year or two of better management, rising rents, and low costs, we will be in a great spot if I desire to pull some cash out. 

@Benjamin Kanevsky - I would prefer not to have it publicly out there.Message me and I will send it to you. 

@James Syed - I have now substantially brought down my insurance costs. I am reviewing two new quotes at the moment and thinking of switching. Thanks to some BP members. 
Updates on leasing - We raised rents $50-100 across the board on M2M and locked them into annual leases. 

@Account Closed - Chemical Bank - It was an overall good experience. I looked into Mercantile and LMCU. I ultimately selected Chemical...long story, but basically the seller had a prepayment penalty on selling and his loan was with Chemical. I don't know what deal they arranged, but I assume he got it lowered. Let me know if you have questions on the specifics. 

Congrats on the 4 unit. My best performing investment is a 4 unit in a moderate area. 

@James Syed

Thank you! 

Yes, the sale closed a couple weeks ago. I purchased for $485k, although I also have a few more known issues, where an immediate $10,000 + $10,000 emergency is required.  Now the work begins. 

You are completely accurate there. I prepared more updated numbers now from more historical data, and unfortunately that category took a massive leap. So far I am also a bit low on my insurance estimate. My other projections on costs are lining up. 

In a couple months, I plan on filling everyone in here on how my rents, costs have moved forward. We have a number of tenants on M2M, which has its perks in a sense, but also makes for some concern on a couple immediate vacancies occurring with a rise in rents. 

Thanks

Calvin 

@Ted L. Thanks for the comment. The facebook reference was on a 'Facebook Classified'. I have found it to be valuable to be part of buy/sell groups on facebook, not just for houses. My friend's wife actually found the deal so we did it together and split the profits. I don't know if this will prove to be a trend or not. I have only bought 1 house via this route and 20+ via Craigslist. I also buy from wholesalers and of course the occasional on market listing. I don't currently do any advertising, but I am interested in potentially doing so. 

@J Scott - I certainly need to clarify #2. Perhaps the phrase itself is misleading. First off, this was an off market potential acquisition. My very first formal offer to him was for $112k. Secondly, when he originally said he wanted $120k I fully intended on paying him that. When I phrased my response to hearing his price, I indicated I would buy his house. He was not ready to show it to me at that time. I did not shake his hand nor mention that $120k was going to happen. I was going to make it happen for him. My 'offer' was as broad as the limited visibility/access I had to the home.  He had mentioned that the basement was unfinished, but a nice height with potential. I found that to not be the case when I finally looked at the home's interior. Therefore my first offer was $112k cash, no inspections, close in 30-60 days (he wanted a big range on potential move out). He accepted. He was happy then and is happy today, even offering to come grade my gravel driveway as needed. He was a seller that didn't want to mess with showings, realtors, and the process so in his mind, I believe I was found to be the perfect fit at a great price. 

Personally I wholeheartedly agree with you. I have been on the opposing end of investors making offers with 5 day inspection periods and on day 4, they drop their top dollar full well knowing that they would do that from the beginning and just were stealing precious time and market exposure. I certainly do not desire the reputation of trying this tactic myself. 

Perhaps a better phrase would be....Make full intentions of excitement to purchase the home within the ballpark of their desired price. If I hadn't appeared very focused on desiring to buy his home, his next call was to a flyer he had received from another cash buyer. 

I recently sold my small marketing firm to a large company and now am a full time real estate investor! It took me about 7 years to realize that although always an entrepreneur, very few product ideas or service ideas can garner what real estate investment does! 

Now, one could say, I flip for a living and buy and hold for the future!