All Forum Posts by: Chris Schwagerl

Before you contact any brokers, you have to know EXACTLY what your "buy box" is.  Trust me, you don't want to upset a bunch of brokers because you looked at a thousand deals and couldn't pull the trigger.

Which zip codes? 

What sq footage, # of beds and baths, budget, level of renovation needed, financing options?

Figure it out and write it down.

Then spread this message to every broker you can find.  

Give quick no's when deals don't meet your criteria.  

After you've made a purchase and the broker made their fee, give them a tip.  Throw them a few hundred bucks.  

You've made a partner for life, they're happy and surprised, and deals will flow your way.

We use ACH payments, and that's the only way we roll these days.  It's so convenient for tenants to pay that way.

*Quick tip, we split utility costs by square footage of units.  For example, one side is 1500 sq ft and the other is 500 sq ft, the larger side will pay 3/4 of the utilities.  

We have multiple duplexes with only one meter.  I did an experiment to see which method was best:

1) Calculate the monthly utility costs and upload them to the property mgmt software - variable costs per month

2) Charge a fixed rate each month.  Last year's utility costs +10% inflation.  (Extra costs were either added to the last month's rent or given back to tenants as an overpayment refund)

*Note - properties are in Minnesota, so there's a wide range of temps throughout the year.

Which one do you think was the winner?  Well, I was wrong.

EVERY TENANT PREFERRED #2.

An LLC is used more for asset protection than for tax mitigation.

We put five properties into each LLC to minimize exposure to the entire portfolio while also reducing the costs creating an LLC for each property.

That's just our strategy.

#notacpa #notanattorney

Not all debt is created equal.

BAD DEBT is debt YOU personally owe.  Think of your car, student loans, credit card, primary residence.

GOOD DEBT is debt SOMEBODY ELSE pays off.  Investment properties are here (as long as they have positive cashflow).

Good debt also works as asset protection.  If you own the property free and clear, you have a target on your back because there's a lot of equity that can be captured in a lawsuit. 

Go to your local REIA. Partner with the local wholesalers. Find a seller-financed home. These take nothing or very little out of pocket, BUT it takes time, effort, and relationships to get into the deal flow. Best of luck!!

I LOVE sharing our STRs with others, and I LOVE staying in STRs.

The best one was back in 2012 when my bride and I were on our honeymoon.  We rented the top floor of a farmhouse overlooking the lake in Interlachen, Switzerland.  This was back before a lot of the automations that we all use today.  The instructions to get to the house was:

"Arrive via train and ask a local which one is Lake Brienz.  Take the bus road that runs parallel to the lake until you hear the bells of our cows.  Go to the second floor and make yourself at home."

That whole week, we were terrified we were in the wrong spot!

STRs are all about the experience.  Don't leave a bad taste.

One or the other.  

We do the cleaning fee only.  You do you!

I house-hacked my first duplex with a 3.5% down payment back in 2013.  The aggressive leverage was awesome!  I made over 100% cash on cash every year of ownership except one - stupid boilers :(.  

Whichever way you decide to go, I suggest keeping a log of your thought process.  You'll be amazed at how much you learn and progress AFTER you get in the game.

Robert Kiyosaki bought bitcoin just to learn about bitcoin.  

Make a decision, and go for it!  You'll be stoked you took action.

I have a course called "My first rental property" that walks you through every aspect of getting your first rental.  

I don't want to spam everybody, so reach out if you have questions or are interested.

You got this!!

Hi Marvin,

It's great to hear you're building your business! I have recently come across a 2nd position note for a "mini-mansion" in CA. First position is about 2M and 3 months delinquent. 2nd is around 770K UPB. What questions would you have about this deal?

Thanks in advance,

Chris Schwagerl

612-239-3494

Hello BP family!

I've been marketing to banks lately, and I've come across a couple of resorts in Northern MN.  They both have great equity in them, and the owners are certainly motivated.  This is a great deal, but there's one problem - I don't know the first thing about managing a vacation rental, let alone a 50-cabin resort.  I know this is a loaded question, but where do I start in considering if this is a direction I should go with my business?  Anybody have any experience with this?

Thanks in advance!

Chris Schwagerl