All Forum Posts by: Account Closed

Hi @Gurjotbajwa Singh 

Welcome to BP! To start, I would try to find and attend a local real estate investment group. You will meet like-minded investors and entrepreneurs at these meetings. You can then begin to network with them and expand your reach.

Keep up the education efforts as well. By reading and accepting the premises put forth in "Rich Dad, Poor Dad", you are off to a great start. There is a proven and well-worn path that many of us have traveled to reach financial freedom through real estate investing and this book was the start of that journey.

Best of Luck! 

@Account Closed I know a number of investors cashing in on above-average growth in two counties - Lake County, IN and Kenosha County, WI. These two markets are capturing the demand being created by people fleeing IL but remaining close enough to retain their jobs in the Chicago area.

Best of Luck! 

@Caroline Wildfeuer Hi Caroline...Welcome to BP!

You can start with two books on the basics...Ken McElroy's "The ABC's of Real Estate Investing" and Brandon Turner's "The Book on Rental Property Investing".

Best of Luck!

@Raymond Hooks Welcome to BP Raymond. Some good advice so far. I will add to the mix by recommending Brian Burke's new book, "The Hands Off Investor" which is written to help passive investors like you select syndicators. 

I would also be willing to help you vet a syndicator and I have a couple in mind. They come from the operational side. They are hitting numbers in the neighborhood you are seeking. And, they did not have to suspend distributions, even during a global pandemic, because of the way they structure their deals and operate their assets.

Please DM me if interested in talking.

Best of Luck!

@Mamadou Ngom I recommend purchasing Craig Curelop's book "The House Hacking Strategy" to become as familiar with the strategy as possible. 

House hacking is a wonderful avenue for a beginner to pursue. If I could go back in time, "HHing" is how I would start in real estate investing. I have twin 18-year old's and I will be "encouraging" them both to pursue this course of action.

Best of Luck! 

@Account Closed Sharon, congrats on looking for and successfully finding a potential deal. It's commendable that you are trying to improve your life through real estate investing. Rewards await those willing to work and maintain their integrity.  

I advise you to first find someone with real estate investment experience. Someone you can trust. Real estate is risky. Debt is a loaded gun and can do serious harm for those who do not know what they are doing. You need guidance. Partner with this person(s) or figure out a way to compensate them for consulting/mentoring services. 

This person can then help you actually execute the deal while teaching you along the way:

1. Look your deal over from top to bottom and determine if you have a "deal" (run the numbers, do local market due diligence, property due diligence, etc.)
2. Conduct and-or participate in the negotiations  
3. Assist with the team building process (property management selection is absolutely KEY)
4. Create deal package/loan request package to help raise the equity and the debt (not so easy anymore)
   
5. Help guide both you and the deal through the acquisition
6. Help initiate and execute the business plan, working closely with the property management company
7. Assist/teach you how to asset manage  

You can start looking for that person right here on BP. Look at profiles, read their forum responses/posts, call and interview them, etc.

Best of Luck!

Good Morning BP Community,

As a multi-family apartment owner, I was thinking about how dangerous the government-imposed eviction moratoriums could be to the fundamentals of our business model. I understand that the current situation is labeled "temporary", but as John C. Calhoun once said "there is nothing more permanent than a temporary solution". This axiom is particularly germane when the government and bureaucrats are instituting the solution. 

When I couple the moratorium with the subtle (and not so subtle) messages put out there by various sources that housing should be free, my concern deepens.

While the courts may eventually offer some sort of remedy, there are the obvious costs, delays, and uncertainty of outcome associated with this route. Also, in this situation, the courts are closed and justice is not available. 

I also considered the cash for keys solution. But I am not sure how effective this would be. Why would a tenant getting a free ride leave? Would cash for keys still be feasible if there are a large block of tenants involved?

Short of some sort of lock-out, or physical blockage of occupancy, I am struggling to come up with any alternatives and thought I'd tap into the community's collective wisdom.

Thank-you in advance.

@Michael Temple If inflation is really occurring right now (many are arguing we are in a temporary deflationary period), a case for gold or silver could be made: 

1. 1. Keeps the liquidity that Capital Reserves require intact 
2. 2. Prices are really just a reflection of the strength or weakness of the dollar's purchasing power

Just a thought...

@Kati Finneran Hey Kati...first, good for you...by using BP, and seeking advice, you are practicing risk management...this is an excellent characteristic and one that should be expanded upon going forward...second (and the following advice/statements are very general in nature as I have no knowledge of your deal's specifics or your personal situation), I would move forward if you are willing to educate yourself on the nuances of being a Section 8 landlord...there are some important government-related strings that come attached with subsidized housing...third, I would move forward if you can secure financing that is acceptable to your situation...fourth, I love the HH strategy and were I you, I would make a small investment in Craig Curelop's book "The House Hacking Strategy" so as to learn as much as possible about the approach...finally, in response to your last question, we are always looking to acquire the right investment - always!

Best of Luck!

@Pete Harper 

To the question of how the "crises" is affecting student apartments (we have 67-units/167-beds of purpose-built student apartments):

1. Because of the hassle in withdrawing funds from their 529 accounts, roughly 80% of our tenants pre-pay rents for either the semester, or the entire school year.

2. Primarily as a result of #1, for the Spring 2020 semester we were at 100% collections.

3. About 60-65% of our residents stayed in their apartments, or returned to their units after going home for the initial week or so, of the "crises" (estimate based on utility usage for Mar/Apr). They are now doing their on-line courses from their apartments and with their friends/roommates.

4. Majority of off-campus residents are upper-classmen who are at the stage of their college experience where they place higher levels of value on their independence. While willing to return home for the short-term, the novelty of the situation wore off quick and these kids are demonstrating an eagerness to resume their independent life-styles.

5. We believe that while most parents understand the situation and are adapting to the abrupt change to their life-style, they are doing so with the belief the situation will be short-term (30-60 days). These same parents, like their kids, will most likely not be content to, or willing to, extend the situation long-term.

6. We are 90.2% pre-leased for Fall 2020 (ahead of this time last year – 88.0%) and will begin collecting rents for Fall 2020 in May (we require tenants to pay 1-month in advance and contracts commence in June). No one has tried to back out (yet) and we have parental guarantees as well as joint and several liability clauses.

7. Resumption of in-class instruction is of course the primary concern. If on-line instruction continues into the Fall 2020 semester, our guess is just that - a guess - as to how many of our residents will “stay and pay” or try and get out of their leases. Only time will provide an answer to this question.

8. A number of universities (including Purdue and Illinois State) released statements yesterday (Apr. 29) that they fully intend to hold in-class instruction for the Fall 2020 semester. Financial pressures are just too significant for the universities to do anything but. Yes, they will adjust for distancing and density type events, but they HAVE to move forward with in-class/in-dorm activities. Remember, they are paying for the operation of the dormitories whether occupied or not.