All Forum Posts by: Corby Goade

Welcome to BP!

We do something very similar to what you are looking for in Boise, ID, which is just a short jog from Seattle, lol. Super landlord friendly area, too. Spent a lot of time building up a team there and have had some good success. Happy to make some connections in that market for you if you like. 

Best of luck!

The simple answer to your question is HELOC. Cheapest form of funding you can get.

However- I'm curious how you want to buy a new build AND increase the property value? Those two things typically don't go together. There are many factors that come in to play- like how big is the subdivsion you are buying in, how many more homes will be built there, the quality of the homes, etc. You need to have a savvy agent working with you to make sure the property has the potential to do what you want it to do. 

Welcome!

Start networking with private and hard money lenders. You'll need them as you get rolling, but hopefully after a few good deals, you'll be using your own money. 

One issue that jumps out at me from your post is that you say your market is "too expensive." Lots of new investors get intimidated by pricing. Keep in mind "expensive" real estate means higher profits and actual demand. 

Why do you think properties are cheaper in Cleveland? It's not because there's tons of demand- that's what drives pricing- if lots of people want a property, the price goes up. That's why real estate is more expensive in your area. That means fewer DOM, higher offers and more buyers- those things all mean more profit, too. 

Best of luck!

Obviously you can get higher gross rents with this strategy, but it's much, much more hands on. The opposite of passive real estate investing. You'll end up dealing with intrapersonal problems on the regular and it's absolutely vital that you have an airtight lease and you are ready and willing to enforce it. 

I think many people who want to try this strategy end up with really awful roommates or at least awful roommate situations and they don't handle them professionally. Eventually it will eat at your peace and the extra income isn't worth the stress. Gotta set the expectations from the start and be firm at all times. 

Best of luck!

Some good advice above, but I'd talk to a LOT of lenders. Many of them will tell you something isn't possible if THEY don't have the product you need. There is something out there that will work for you, you'll just need to find the right broker. 

Also- if you send someone an inquiry- like this broker from BP, and they don't reply within one business day, keep looking. 

Best of luck!

The easy answer is to just give them 60 days notice. 

As a side note- we just send a letter to tenants with the lease changes and an addendum. We give them a deadline to respond and state that if they don't respond within  that timeline that they are choosing to non-renew and we send them a notice to vacate. 

Takes all of the possiblity of negotiation out of it, super simple process. 

Best of luck!

Retailers like supply stores won't refer you to vendors because they don't want to alienate their customers. 

I don't mean to be a debbie downer here, but if you are thinking of buying a property in a different city that you haven't seen and you have no relationships with contractor and you don't have enough experience to estimate capex, it might not be the right opportunity for you. 

I'm defintely all about taking action, but there are so many unknowns here and you are in a perfect position to get taken for a ride by a wholesaler or contractor. 

The action I'd reccomend for you right now is to get out there and network with other investors and start developing relationships with people who you can either partner with or get referrals and advice from so that when another opportunity pops up like this, you can lean on their resources. 

Best of luck!

I'm confused- are you in the process of purchasing this new rental now and have not had it inspected during your escrow period?

"Passive income," is a VERY broad statement. So many ways to attempt to earn passive income and you'd need to understand their method. 

Speaking generally, they are likely either syndicating funds for buy and hold or development deals or they may be helping clients purchase and manage specific assets. Totally different methods and experiences. 

For one, find your own references- ask on these forums if anyone has worked with specific providers in the market you are exploring. 

Check Google reviews, those are usually pretty telling and it's difficult for vendors to get bad reviews taken down. 

I run a business like what you are asking about and I always encourage new clients to reach out personally to anyone who we've done business with. I'd prefer to have my clients sell our services rather than my staff. If the vendor doesn't encourage you to ask around, that might be a red flag. 

Finally, one of the reasons they are catering to high wage earners is that they are likely trying to help them get in deals where they may be able to accelerate depreciation, which is an entire other strategy that can be very profitable for the right person. Lots of moving parts here, but I'm happy to elaborate if you'd like. 

Best of luck!

It's very unlikely you'll find a lender who will give you a loan that would work as a primary- you MIGHT find someone who will work with you on a construction loan, but they commercial use and zoning for the property will likely be problematic. 

Have you chatted with a local commercial lender yet? I'd set up zoom calls with at least three or four that you get personal reccomendations for. I'm sure your agent or real estate broker will be able to connect you with a few. 

There are all kinds of interesting commercial loans out there, and since they're all portfolio and private money, every lender could have totally different options for you. It's not like conventional loans where the feds regulate everything. 

Best of luck, sounds like an interesting property!