All Forum Posts by: Chris Winslow

Here is a link to a short BP post by @Brandon Turner on this topic that has some good info:

https://www.biggerpockets.com/blog/meet-private-money-lenders

I'll second both @Nicholas L. and @Roni E., the minimum depends how or where you are investing. There are some crowdfunding sites (such as Fundrise) that will allow a $500 minimum investment. For many syndications, it seems like it will be at least a $25K minimum or more, though you can find lower requirements, especially for newer syndicators. If you still choose to invest those funds I definitely agree with doing your homework first as well. 

I would also suggest saving before investing. I think it would be smart to save a small "emergency" fund that would cover a couple of months of expenses and then start saving for a property of your own. If you work on finding good realtors and lenders you should have no problem getting an FHA loan which would be as low as 3.5% down (plus closing costs) or possibly even slightly lower if your lender can set you up with seller credits.

I agree with @Clark Kirkpatrick. Go for it as long as you find something where the numbers work, and assuming you are going buy and hold, it doesn't really matter if the market is "hot" or "cold" as long as you are cashflow positive. 

In my opinion, waiting for the next downturn is not the best option. I agree that it still seems like something is coming soon but we can’t predict for sure when it will actually happen. I have been listening to some older podcasts and there are a few where people are talking about how overheated the market was even since about 2014 (5 years ago). Imagine all of the gains you would have seen from appreciation and cashflow if you had been collecting for the last 5 years.

That being said, my guess is that we are closer to the next downturn vs farther away but even if you buy and it does happen, I think that is okay as long as you are investing for the long term. I say this because:

• 1)If you dollar cost average and buy property both when the market is up and when it’s down you reduce your overall volatility/ the swings in prices of properties that you purchase
• 2)You will continue to gain experience and be more equipped to handle more upcoming deals
• 3)You are making $300 per month cashflow (I think this is probably the most important). If the numbers are solid then it seems like a good idea. Even if the property loses a lot of value in the short term and your net worth drops, you will still have your cashflow and it is very likely that it will eventually climb back up based on previous markets.

@Tyler D. I would recommend going to the BP calculators pages and trying out one of those. Here is the link for the rental calculator: https://www.biggerpockets.com/buy-and-hold-calculator. This way you can break out expenses and see where each is coming from and it will also help you account for everything. This should be more accurate than the 50% rule, assuming you have reasonable estimates. 

Thanks for the input guys! @Max Householder actual job location near st. louis would be Caseyville, IL

Hello BP,

I am looking at switching jobs in the near future and right now it looks like it might be between 2 jobs, one would be near Saint Louis MO and the other near Omaha NE. Since I ultimately want to make real estate a large part of my portfolio, I want to at least consider the location when I accept another job. Right now, I am still new and have not made any purchases yet but am hoping to once I have a more stable job location.

If you were choosing between those two locations, which would you pick and why (or why not)?

Any input that the community has would be great! Benefits/drawbacks, population growth, potential appreciation, strategies, best investing areas, price/rent ratios, jobs in the area, etc.

Thank you!

Hello BP,

I am looking at switching jobs in the near future and right now it looks like it might be between 2 jobs, one would be near Saint Louis MO and the other near Omaha NE. Since I ultimately want to make real estate a large part of my portfolio, I want to consider the location for investing long term when I accept another job. Right now, I am still new and have not made any purchases yet but am hoping to once I have a more stable job location.

If you were choosing between STL or Omaha, which would you pick and why (or why not)?

Any input that the community has would be great! Benefits/drawbacks, population growth, potential appreciation, strategies, best investing areas, price/rent ratios, job types in the area, etc.

Thank you!

Welcome to BP! I am not sure the specific forums but you can set up keyword alerts and there are in person meetups on the 2nd Monday and 3rd Wednesday of each month at Buffalo Wild Wings at 6. The Monday one is more general and the Wednesday one is more focused on larger multifamily.

If water bills do not get paid, then the City of Grand Rapids can put a lien on your property even if the tenant is supposed to be responsible. I think this is still true but maybe somebody with more experience here can let you know. It seems like the norm for most of the area is that the landlord pays water in small multis but you could set the water up in your name and bill tenants to avoid any lien concerns.