All Forum Posts by: Connor Ryan

I have been working in the Finance world for the last 6 years as a licensed Financial Advisor and have been studying/investing in real estate along the way. I have decided I want to take the leap into a real estate related profession. I would love to provide value and i'm willing to do the work to learn the business inside and out. If I can be of any value, I would love to connect.

I am a newbie investor and looking to start buying 1-4 unit properties using the Brrrr method. I'm aware that I don't necessarily need to set up an LLC, but I'm noticing a trend that it is becoming harder for individual investors to get conventional investment property loans (because of the Fannie Mae cap placed). I'm also noticing a trend that some private lenders want to see that you have a business entity established to get me pre approved for a Line of Credit or a loan that would fund a majority of the purchase price + the rehab. Should I establish an LLC in the state I am looking to invest in even though I haven't started buying properties? One of the ways I will be able to start writing offers is buy having pre approved financing set up and this financing is dependent on having the LLC established.

Hi Marcos! Welcome to BP! I am a new investor as well and inally from St. Louis but getting started out of state. While covid has made it hard to connect in person, it has also created virtual meet up opportunities (good for us out of state guys lol). I have heard great things about the virtual meet up put on monthly here on the forums. Here is the link to the most recent. I'm sure they will do another next month! https://www.biggerpockets.com/forums/521/topics/921350-the-7-baby-steps-to-rental-income-online-only

With foreclosures being a very realistic possibility in markets all across the country in the near future, I have stumbled upon an article of a woman who makes 200k a year without buying or selling real estate as a Property Preservation Contractor. My understanding is that PPC's maintain foreclosed properties for banks and property management companies. They perform repairs, secure points of entry, clean interiors, and maintain exterior landscaping. This could be an in demand business in the coming months or years. Is there anyone on here that has had personal experience as a Property Preservation Contractor, any insight at how passive vs. hands on it is, or barriers of entry to be aware of etc..

Link to the article: https://anniesinspo.com/become-a-property-preservation-contractor/

I appreciate any information!

Thank you,

Connor Ryan

Congrats on a successful BRRR Derek! If you don't mind me asking, what areaof St. louis are you investing in? The price to rent ratios there are some of the best in the country and I am currently working to target areas on both the east and west side of the Mississippi. I grew up in St. Louis and have lived a majority of my life there. I have plenty of insight into the city if you ever have questions about neighborhoods or just looking to connect!

@Forrest Faulconer his forest, this is a great question.

I think it all depends on various factors. What is the historic appreciation in your market? Did you buy a fixer upper or something new? Could this home be something you could rent in the future? Are rents going up in your market? Are you splitting expense with someone?

I’m my market of San Diego, 1br rents are approaching 2k. Idk about you but, I would rather pay a mortgage than 2k a month to someone else’s mortgage. I also house hack in a condo with my significant other and cut down a majority of the payment. I know that the 50 year appreciation for San Diego is 5% year over year. I feel comfortable knowing that this will appreciate long term and if I move, it could be rented with ease. I would argue that if your primary residence is saving you money than if you were to rent, it is giving you a return and this is an investment.

Now if you are in a market that is flat and buy a big home that costs you more than you would pay renting and there is no opportunity to rent it out later down the road, then it is liability.

And I would say that being in a primary home that appreciates can even give you enough equity that you can take out a heloc to then buy more investments. Primary homes when used correctly can be powerful.

Hi Antony, It really depends on the market you are investing in. I personally find that Small Multi Family Properties (2-4 units) are one of the best investments out there. You can get conventional and fha financing putting down as low as 3% if you live in one of the units and rent out the others. Also, small multi's have a better chance at cash-flowing with the collective rents from all of the units. If you are in a market that is affordable, you may be able to get started investing by either house hacking (Living in one unit and renting the others) or buying as a investment property (20% down). Some markets are very expensive at the moment and a single family home may be more affordable for you to get started. You may also find that the single family is in an area that has a ton of opportunity to appreciate, thus making it more attractive than the multi. There are pro's and con's of each, but I personally believe that small multi's are one of the best investments out there.

One of my biggest confusions is finding the right % to take out of rents for CapEX, Vacancy, Repairs, and Property Management. I know this can vary from market to market, but always good to confirm averages from other investors.

I personally plan on investing if the deal makes sense. Right now there aren't a lot of deals that are meeting my criteria. If one makes sense on paper, I will pull the trigger regardless of where the market is. I think its good to stay balanced. You don't want to be desperate for a deal just because of FOMO.

Awesome Story Cameron! Motivating to watch your journey snowball into partnerships and other strategic ways to finance deals!