All Forum Posts by: Nicholas Weckstein

sounds like you are in a great position. However due to the fact that you have no income...minus the returns your getting on that $1m + ( so technically I guess you do have an income)

if I was in your position I would look to buy some cash deals that you can get some equity gains by doing renovations. since you have the capital...you front the cost...rent the building and after you season it for 6-12 months. pull your money out.

This way you can use the income from the asset to get financing. Then rinse and repeat and you should have no problem getting financing afterward. 

or maybe an asset based lender

Thank you everyone who was willing to reply. Still working on finding my best deal ever LOL. But all these replies gave me motivation. 

Thanks again !!

I think you want to look for C or B class neighborhoods. Thats really where cashflow lies in multi family investing. buying A class usually is more of an appreciation play. the lower down the class of neighborhood that you go, the more positive cash flow it has. this is also similar to a cap rate which can help you to judge an area. Look for modest homes, working class and some nicer ones sprinkled in. Then its all about amenities. also if its a strong market for renters comes into play.

your best bet will be to figure out what type of returns you want (risk tolerance) then start to do research on diff markets. this can all be very subjective on why YOU think its a good place to park your money. could come down to location, amenities, price point etc. 

at 100% collection here. very pleased about it and lucky. 

@Stephanie Simmons Great response, My dad always used to say that to me too. "you make money when you buy not when you sell" 

 a sense of "scarcity" has happened recently since everything has been kind of, shut off.  

Lower end markets are being hit FIRST. but I think they will rebound quicker and easier then the mid-high end markets. for instance the people who are employed in those lower end markets are also some of the highest rate of "essential" workers. so I think what will happen is the mid-high end markets are going to suffer from lack of consumer spending that will likely come from wage loss from people in those 2 lower classes. the owners of those consumer goods and services will suffer. 

I agree, im tightening my ship up too. changing my criteria for an offer.  Banks have tightened up. That means investors have to also

Glad I can help, @Todd Rasmussen is not wrong either. just depends on what your comfortable with and what you can manage. 

I FEEL YOUR PAIN! an agent I usually do business with has done the same thing to me. im also in PA. learning to navigate this way of doing business has been challenging. best bet is to keep an eye on your market and be ready to strike. but just not to eager as I think prices are going to soon be in decline. Ive since put more time into my wholesaling. 

I think they can be tough sells in some ways. but also easier in others. I think the goal here for you should be HOW can YOU help THEM. what I mean is many older folks have been in those homes a long time, have sentimental value to the place. That can be rough to navigate for you. In the same sense many of those people would like to sell and maybe move closer to family, but they haven't sold because they have to clean and fix it up first. this is where you come in. I wouldn't go for the "throat" on these types of people tho, as you run the risk of blowing up the deal and being yelled at by a son for trying to take advantage of his mom or dad. If you offer THEM VALUE, while you still make money and get them a buyer. you make everyone happy. 

I think difference in end game/vision is a big one. But as long as you guys have respect for one another and the morals needed to do business fairly with one another. you'll be fine.

I am concerned over the house hacking with a business parter ? sounds like double? triple? dipping to me. first they are your partner, then they also live with you? in the building? in the same unit? is this a friend or family member? 

Well if you try to sell now, it will be difficult as we all try to negotiate how to continue doing business in a real estate market that has otherwise "closed down". I think that you'll find less buyers right now and more "investor type" buyers are going to start poking around soon. do rents cover the expenses ? if so maybe rent it and hold out for a while.