All Forum Posts by: Chace Corbett

I currently co-own and manage a 4 building 32 unit complex on the same street where a single building 5 unit complex just came available for sale (all 1Br1/1Ba). I know the demographics, I know what the units will conservatively bring in for rent. To be honest, I have people waiting to rent a 1BR unit from me I just don’t have enough 1BR/1BA’s for rent. Once one comes vacant they are rented within 1 week typically. My family has been in business here for almost 40 years so through word of mouth over the years we get tons of referrals. I always say when you take care of your tenants they will take care of you! My problem is they’re asking $489,000 and I do not have the capital upfront to put that kind of money down. The units are all rented and I feel confident with my knowledge and time spent managing similar properties in the area that this would be a great investment. My office is one street up and I have a full time maintenance staff who handles all maintenance and repairs.

My question is for someone who has done a deal like this and had to use partners, lenders, etc. to execute, what do you suggest I do to find financing for a deal like this? What routes have you gone to proven successful?

For me sometimes it’s something as simple as taking a step back and changing my lense in which I’m looking through. I read something from John Maxwell where he said everyone needs to be equipped with a telescope and a microscope. When the day to day stuff starts stressing you out and giving you anxiety then you need to pull out the telescope and put away the microscope. As in look at the big picture and the goals you are trying to reach. And vise versa- when the big picture seems overwhelming and like such a daunting task, you need to be able to pull out the microscope and focus on one task at a time.

@J. T. Ford

Correct me if I’m wrong but I went to my mortgage lender about one of these and he pretty much said they don’t exist anymore. He said once Covid hit, the money for this kind of loan went dry. Let me know if you know something different because I could use it for a rehab I’d like to do!

@Joshua Lira

Do your homework and all the prep work. Run the numbers and find out every detail as to your expenses, cash flow, etc. BP provides a great calculator you can use to help figure out all those numbers for you. Prove to your friends and family that you’re able to make this thing happen for positive cash flow and people will be asking YOU how much they can invest on your next project. Unless you’re a very small percentage of people and have access to tons of money/resources, it’s just like anything else- it takes time to save money up from your everyday job to support this stuff. If it was as easy as stumbling upon a bunch of money everyone would be doing it and it wouldn’t require the hustle that it does. Not the attractive answer than anyone wants to hear but if you want it bad enough you’ll make it happen. Good luck!

@Maya Gorski

Ask around more on the forum. I was using a couple different agents who were all just somewhat lazy and weren’t hungry to find deals. Some one on BO referred me to an agent they had used in my area and WOW!! The agent they referred is a go getter and on top of everything. We spent this entire weekend viewing properties. She even missed church for me lol

My point is, the right agent is out there and it just takes a little time. There’s always learning in every experience and right now you’re learning what NOT to look for in an agent. That’s equally as important. Stay focused and ask if anyone can refer you to someone they’ve done good with with before. But certainly don’t settle or get your hopes up. The right agent is out there!!

@Kyle Curtin

Yes, I make sure to ask all the questions I need answered. You have to do your due diligence! You wouldn’t want to miss something big all because you never asked. Make sure to always get an inspection when you’re looking to purchase something! Cover yourself from every angle.

@Devin Monroe

Shop around with the PM group you use. Make sure you know what services you are expecting from them so everyone is on the same page and you’re getting competitive prices. You could always go the route of starting your own property management group one day if you’re planning to have that many units. Able to inspect a lot more of what you expect that way!

@Michael Gabin

The name of this game is customer service and having your tenants feel like you’re on their side. Earn their respect and they’ll work with you in anyway you need. Treat them kind and they will treat your property the same. People will go above and beyond for you if they feel like you respect their opinions and are trying to understand them. But if you make them resent you they can make your life hell while they’re in the unit! Just takes times and practice, you’re living and learning how to handle different situations along the way. Just remember... ITS ALL IN THE PRESENTATION!

@Martha Daisley

Have you run the numbers through the BiggerPockets calculator to see what your cash flow is going to look like? Also, are you working with an agent yet that can make an offer when you’re ready?

I am currently about to begin my real estate journey by house hacking. My one question is since I have already been preapproved for a FHA, would I still qualify for it if I first bought an Investment property with a conventional loan with a partner? Can I still get a FHA loan after I've already used a conventional on an investment property with another person? I ask all of this because I have found some nice townhomes that I have run the numbers and they would be cash flow positive! Id like to get the ball rolling since it could take some time to find a duplex or triplex but I don't want to risk losing my chance at 3.5% down with the FHA.