All Forum Posts by: Cody Begg

@Randall Jacobs @Tim Yearout Randall great point! I am investing in the college station and bryan market and have found the sweet spot for me is 160K 3/2 SFH that rent for 1600. Once you get over 2K in rent you run a couple of risks. You take yourself out of the young professional or working poor market and limit your clientele to exclusively 4 college/sorority friends which is inevitable for high turnover. I love college station 77845 77840 and follow the school trends carefully. One thing to note in this market is that apartment buildings are going up in huge numbers. I am curious what this will do to the SFH market?? Anyone have insight?

@Account Closed that is extremely helpful!  Thank you.  I will ask those questions to the bank we are currently negotiating with and start shopping around!

Hey guys! Hoping y'all can help me. I own 4 SFH and only know/understand my experiences of personal conventional mortgages where I put 20% down. However I am in new territory I recently got into a partnership deal in Bryan college station, tx BCS. We have created an LP and began talking to a regional bank. We have one member of the partnership that has a high net worth and he says when he was talking to the bank that they suggest based on the loan that our first financing to be a 5 or more unit to qualify as multi-unit. He is saying that we would be structuring a no money down or low money down mortgage based on combined liquid net worth. My questions are: Does this make sense and can anyone help clarify? Second should we even do this? We are trying to do little money out of pocket. Third is if we go this route is there any flexibility in combining multiple SFH deals into one deal as a multi-unit purchase? Look forward to any feedback.

Hey guys! Hoping y'all can help me. I own 4 SFH and only know/understand my experiences of personal conventional mortgages where I put 20% down. However I am in new territory I recently got into a partnership deal in Bryan college station, tx BCS. We have created an LP and began talking to a regional bank. We have one member of the partnership that has a high net worth and he says when he was talking to the bank that they suggest based on the loan that our first financing to be a 5 or more unit to qualify as multi-unit. He is saying that we would be structuring a no money down or low money down mortgage based on combined liquid net worth. My questions are: Does this make sense and can anyone help clarify? Second should we even do this? We are trying to do little money out of pocket. Third is if we go this route is there any flexibility in combining multiple SFH deals into one deal as a multi-unit purchase? Look forward to any feedback.

Chris Balestriere I have family in the area and know the area very well. Expensive but lucrative with the right deals. Lots of opportunity. I have a close friend who does general contractor work as well as HVAC based out of Westport whom is always interested in creative deals/ partnerships and can help with creative work to create value. Message me if you are looking for a good contractor contact in the area. Good luck.

One thing to consider when establishing a partnership in real estate is to discuss how you will disperse profits and agree on the onset on working capital levels. I have been in a partnership deal where the other person, "needed the money more" and we came to head on when and how to take profits and what an appropriate level of working capital and re-investment is appropriate. This eventually ended the partnership but I learned that sometimes you can't assume what the other person is expecting when it comes to profit and growth. I wanted to reinvest in properties and grow wealth!

Podcast #169 explains purchasing notes in some detail. I highly recommend listening to the experiences shared there. He talks about the pros and cons. Specific to your example above, I think that you need to determine your end game for the property. It is probably better to get the person in the property to start paying again, which would produce cash flow for you on new terms that you set that would be more manageable for the homeowner. At face value, if the house is really worth 375k still and you can purchase it for 175k cash by buying the note, I would say sounds like a deal worth investigating further. Otherwise the foreclosure process I am not too familiar with. Hope this helps.

Welcome to BP! Listen to podcasts at every opportunity! I listen at the gym everyday and have changed my strategy based on some great experiences shared. Make friends, learn others path and enjoy a great site for a great investment!! Welcome.

I think it depends on the market. I would say that there is little downside risk to listing the units early if you are concerned about how fast you will find tenants. If the market is really strong then you can wait. For me sometimes you will get lucky with a tenant that sees your vision. I would hate to spend a month repairing and wait to list only to then have another month or two trying to find a tenant.

I rent in a college town of College Station and my hard learned advice is to list your properties VERY early and make sure your lease has a longer than average renewal lead time. I am listing my properties in December for a July 1st or August 1st move in. At Texas A&M they are having their Parents Weekend this weekend and I have noticed that most of the pre-leasing is done by now or at this time. We also have many luxury high rise apartment complexes go up so we have found that the SFH have a unique market opportunity that we differentiate from the complexes. One strategy I use is that I do not charge an application fee. I also offer a small discount to rent if you setup direct deposit automatic payments. (I use Erentpayments.com). This allows me to compete with the apartment hounds trying to fill pre-leases.