All Forum Posts by: Daniel Haberkost

@Cody McVay If you're looking to accelerate your savings and shorten the learning curve, my first question would be - what is your skillset? How can you take that skillset and apply it to RE (maybe helping an experienced investor, or creating your own side business, etc) in a way that helps you get to your goal faster?

Before I was full time in RE I sourced & wholesaled off market land to developers because I have a background in sales/negotiating - now development/land are the core of my active businesses.

What are you good at?

Dan

0 Votes

Originally posted by @Christian Kim:

Hello, Daniel yeah I just started employment at a Charter school. I make 40k a year. I have my eye on an investment and it cash flows well based off of my analysis. But the loan would be for 400k

Okay, are we looking at a house hack or traditional rental property?

If we're talking a conventional owner-occ mortgage then you're likely going to be allowed to go to the high 40s% on your debt to income.

Find a trusted lender (ideally a referral from someone w/ experience in RE), tell them what you're trying to accomplish, have them analyze your financial situation and then they will either tell you:

1.) Yes, you can buy what you want

2.) You can't buy what you want yet but here's where you need to be and how to get there.

2 Votes

Originally posted by @Kyle Smith:

I'm encountering issues with male/female tenants getting along in my single family house. I'm house hacking and renting room-by-room to increase monthly cash flow. Recently, my male and female tenants in one property are not getting along and I need to address this.

I think if I rent my room-by-room properties out to one gender less tenant issues will occur.

Have you experienced this in your business? Is this good thinking?

It's challenging to know if tenants will get along even after they meet each other before signing a lease. I want less head aches in this business, not more, so seeking advice!

Please share your feedback and thoughts. Thank you!!!

Hey Kyle, I've been doing the same thing for years down here in The Springs. I have both males & females in the house at the same time and have not had issues and I believe it comes down to setting very clear standards with people and being mindful of their schedules/daily routines.

I do all of the standard screening procedures (background check, call their boss, call their last two landlords, etc) but I also make it very clear what I expect of them (don't make noise at night, keep kitchen/bath clean, pay me on the 1st) and this has helped quite a bit.

In addition, I make sure everyone has different schedules so nobody is trying to use the kitchen at the same time and everyone gets home in the evening at different times. I believe this has been important as well because then everyone has their own space when they're getting up in the morning/home at night.

What disputes are coming with your tenants? What does your screening look like?

Dan

1 Vote

Originally posted by @Christian Kim:

I'm looking to buy a house soon. I have the down payment and all. However, I'm 24 with a credit score of 731. I'm afraid I won't qualify for a conventional loan on my own because I don't have that long of a credit history. My parent's aren't an option as co-signers. Should I get a pre-approval on my credit alone or try to find a co-signer? I didn't want to hurt my credit for no reason. Help an eager young entrepreneur out!

If you have a solid debt/income ratio, a good credit score (you do) and a steady W2 you should have no issues. I bought my first house hack at 21, you should have no problem at 24.

In your other post you ask "is $300k too much for a first investment" - the question you should be asking is "does it cash flow?".

Do you have a steady W2 job?

Also, stop thinking being 24 is a limitation, being young has helped me tremendously and continues to do so.

Dan

1 Vote

Originally posted by @Robert Herrera:

Hello all, it’s been a while since I posted anything about the Pueblo Market.

Personally, I’m doing both Buying and Selling.

Properties have appreciated well and I’m cashing out on properties that are no longer producing good returns. This is compared to the equity locked in the property. Making $6,000/year on a property with $100k equity built up is only 6% and has to go.

I plan to redeploy the capital back into the market. Properties are still meeting and beating the 1% rule so I’ll buy.

I’m expecting this whole house of cards to come down, and crash. Then it’s back to buying more properties.

What is everyone else seeing? What are your plans for Pueblo

I've been buying/selling land & building in Pueblo West and it's really crazy how quickly the market accelerated this past summer. Last spring I could still buy infill lots for $10-$12 on the market and on the north end of PW they're now $30-$40!!!!

Crazy, but so far appraisals are supporting the increased cost. I don't have any long term buy/holds there but it's been a useful market for creating income.

Dan

3 Votes

Originally posted by @Lex Douvas:

Hi All -

First time poster here but wanted to perhaps tap the collective wisdom of this group. I've got one investment property in CA, I'm looking to start expanding that in a more affordable market by doing my first out-of-state investment. Colorado Springs is the main next area that I have comfort in (family on-the-ground, etc), I know the market there is a bit hot so it might be a challenge to find something that cashflows, but any chance anyone has a good recommendation for a realtor in that area who is used to helping investors look and can help work with a first time out-of-state investor (and hold their hand a bit)?

Any steers would be greatly appreciated!

Hi Lex, I'd reach out to @Colin Smith - he helped me when I first moved to The Springs and has continued to do so since. He knows the market extremely well and is an investor too.

Dan

1 Vote

Originally posted by @Leilah Davis:

We do spec home construction, NO rehabs or flips, so all we are looking for are vacant lots. We are aiming to do 8 properties this year, currently working on our first one of the year. By far the BIGGEST issue we are running into is simply finding the lots!!! I have sunk SO MANY HOURS into searching. I look on the MLS, I engage with wholesalers, I'm doing cold calls, direct mailers, literally everything! I know the deals are out there, t's just a matter of not having the time to devote to finding them. I have recently started considering trying to find a "bird dog".

Has anyone had experience working with a bird dog? I feel like what I am actually looking for is not exactly that. My understanding of a bird dog is typically someone who does the "driving for dollars" thing, they go out and find properties in person and then gather all the basic info on that property and simply pass the lead on to the investor ... right?

I'm really thinking about hiring someone with skills in negotiating. I want someone who will take all the basic data that i've already collected, do the cold-calling, emailing, door knocking, etc and then actually build relationships with the potential leads and only bring the deals to be when they are hot and ready to accept an offer. I would even be open to having the "bird dog" (or trainee, or apprentice, or whatever you want to call it) doing the actual negotiating and getting to a price verbally that everyone can agree on, so long as this person understands the market and our needs enough to do so.

Thoughts? Concerns? Am I Crazy??? Is there anything I'm not considering here??

If you have done something like this, what was the compensation structure?

We're building here in CO and I've had a lot of success with mailers to buy land cheaply off market. Are you not getting a response here? What do the lists look like that you're mailing and what are you saying in your letters?

Dan

0 Votes

Thanks for the mention @Stuart Grazier, you're spot on. I am not building new construction up north where you are @Jay Young, but several of my general contractors are and it's very difficult to make the numbers work. We're building duplexes on lots bought for $10k-$15k with all utilities in place and that's the only reason it's viable.

I think you're also underestimating the other costs involved. If my memory serves me correctly, tap fees for water/sewer on a duplex we're doing now ran $40k.

Dan

0 Votes

@Mark Rosenberg that looks very thorough so you should be good with that. I don't think knowing how to screen a tenant is the issue for most people. I think actually sticking to their standards is where a lot of people trip up.

Make sure you stick with your parameters regardless of any sob stories or excuses.

Dan

1 Vote

@Mark Rosenberg I want to second @Tracy Streich that the screening of your tenants is the main thing that will determine whether this is a positive/negative experience.

What will your screening process look like?

Dan

0 Votes

All Forum Posts by: Daniel Haberkost

Daniel Haberkost has started 12 posts and replied 677 times.

Post: House hack free time

Post: Young investor trying to get a loan approved

Post: When renting room-by-room, keep tenants the same gender?

Post: Young investor trying to get a loan approved

Post: Pueblo Colorado Market Updates

Post: Realtor recommendations for Colorado Springs / Pueblo area?

Post: Should I try to hire a "Bird Dog"?

Post: Building vs Buying (Duplex)

Post: making the decision to manage my first 2 SFH - 25 y/o

Post: making the decision to manage my first 2 SFH - 25 y/o