All Forum Posts by: Chad Duncan

@Crystal Smith How do I find the information?

Thanks

I went through a small town near where I live and looked at every street and house that was older  (1910-1930) that needs TLC. I have created a list of roughly 45 homes within a 5 square mile radius. This town is an up and coming neighborhood that I believe is going to be one of the biggest appreciation markets in Oregon. (Not speculation) I did my research and asked the county and local builders at their projections of building, roads, markets etc.

My questions is "What is the best way to approach the owners of these homes?"

A lot of the people who own them do not have any payments, they are either paid off or they have a ton of equity. Some are owner-absentee and the home is sitting there rotting. I absolutely love the style of these homes and plan on fixing the home to its original state. 

What are some of your ideas as to not only approach the owners to sell, but also my negotiation standpoint when approaching them?

Thanks for your time!

Thanks @Nathan W. for the advice.

@Jerry W. I have a VA loan so it is hard to get a distressed property accepted through the loan. I would buy a fixer and use the "equity" (granted I buy it low) to fix it then rent it until I have a good % of equity. At that point I would pull a HELOC and fund my next deal and rinse and repeat.

@Ralph Pena It is hard in my market to get seller financing without a considerable down payment and really good terms for the seller. My market is swinging to a sellers market with speed.

@Ben Leybovich I want to try and expand by buying more RE per year than 1. Obviously they all wont be the best deals, but they will all collect together in a compounding effect. I am not going to touch any of my RE cash flow until the 10th year. I plan on rolling all of the money that I save in rent on my first deal, and all the cash flow from future deals into funding down payments on the next deals. I have a full time job and do not need to live off of the RE money. When I do though, I plan on releasing my self from the job sector. 

@Val Csontos Thanks for the advice. 

@JR Hinds we should definitely get together.

Thanks everyone for your insights and advice! 

I am currently looking for my first deal in real estate investing and have been wondering what ways I can expand or grow my real estate portfolio. I want to start with the mindset of growing my real estate investments into a full time career in the near future. I am by no means trying to put the cart before the preverbial horse, but am looking to my future from the beginning of my career.

My thinking is this...

Eventually I will get my first MFH or SFR and want to immediately roll into the next deal (thinking positive!). My goal is to have close to 100 units in 15 years. I have heard of this being done, but don't know which way(s) are the best that allow one to accomplish this.

I have heard of taking a HELOC loan out, but with buying a property and rolling into the next immediately, normally doesn't have any equity built up. Other examples would be private lending for down payments, borrowing from family (not possible for me), doing a owner-occupied investment and saving the rent I would normally have paid for a year and then reinvest (this is my plan as of yet, but it seems that it would take a long time before I accomplished my goals), using a credit card to fund deals (which I will not do), partnering (very skeptical of some others motives since I am new), selling after a year or two (speculating appreciation of course, which is bad news) and various not so friendly ideas.

Can anyone shed some light to what ways that I can roll into the next property fast so I can start the snowball effect in the first year? If you have any case studies or examples of your own would be greatly appreciated. If you have recommendations on books, articles, videos, podcasts that may describe this in more detail will also be much appreciated as well!

Thanks for your time and replies ahead of time! :)

I had another question.

Where do I find investors who have multiple properties that are soon to retire?

How would I be able to find someone that would sell me one of their portfolio properties for cheaper than an MLS listing?

Thanks

Thanks you guys for all the replies. My plan now is to go around my neighborhood where I want to buy and write down all the addresses.

Where can I find who owns it, or how long it has been owned and what it was bought for?

I then plan to mail/email/call the owner directly and ask if they would entertain an offer on their property.

I will also look for rent signs and ask the owners if they want to sell as well. I plan on doing this until I get a deal. Hopefully all works out in my favor.

Ok. So if I pencil a good deal then I have a better chance at that? What of using the seller to carry a second mortgage to cover the down payment? Does that work out? If so, how do I approach that? 

I am wondering how I can invest in bigger deals like commercial multifamily homes and not use my own money. Do I use a commercial loan, and then the down payment come from a private lender, hard money lender and then refinance later to pay it back? Has anyone done this with any success?

Thanks