All Forum Posts by: David Constant

Welcome to the group @Chris Merchant! I'm located in Glastonbury, so anything in Greater Hartford area and east, please give me a shout and I'd be happy to lend a word or two of advice. I second @Samuel Eddinger's point about meet-ups: go! You'll get so much value out of them!

This is a great conversation here - this is part of why I love the BP community and forums :)

If you're looking for a true BRRRR in this market, you're going to have to source off-market properties. That's just the reality in a market where home prices continue to soar and "highest and best" is being used on virtually all listings.

With that being said, there are still incredibly strong investment opportunities in many of the towns you mentioned:

-Glastonbury, Avon, Farmington: I'm a Glastonbury resident and appreciation is the name of the game. If you're willing to buy, hold, and benefit from long-term appreciation (5-7+ years), you'll reap the financial rewards. For example, the SFH I bought in 2015 is now worth 38% more! That's with me making virtually no material improvements to the property. Other home owners in town are experiencing similar equity growth.

-Manchester & Bristol: both of these towns are more affordable than the 3 mentioned above and they have strong rental outcomes. There are more multi-family and condos in these towns, which means you have a stronger likelihood of purchasing something as a rental that meets the 1% rule. You'll still experience appreciation in these towns, but at a slower rate. As such, it's important to prioritize cash flow in these towns. As a matter of fact, I am in the middle of helping a client secure a condo in Bristol that would meet the 1% rule.

-New London: lots of folks are saying that New London is on a similar trajectory as New Britain a few years back. Home prices are still reasonable, there are lots of multi-families, and cash flow is key. Only time will tell if the New London area experiences the same boom as New Britain has in the last 3-5 years, but given its proximity to the ocean, proximity to a few colleges, its affordability, and its makeup as an old mill/manufacturing town, I think it's a strong place to invest. I have a couple of excellent contacts in the area - a wholesaler and an agent/investor - who I trust and who have had a lot of success there.

@Amir P. I can imagine that this has been a frustrating process for you. It sounds like you've taken a lot of the proper steps to make sure you're in line with local and federal law while operating with common sense and humanity. 

Here are a couple of quick tips:

1. put everything in writing and keep a copy yourself: phone calls are great for additional communication, but make sure your primary mode of communication can be tracked. In the land of landlord-tenant interactions, it's essential you have a paper trail.

2. connect with a trusted advisor - both a real estate agent and a real estate attorney: at the end of the day, your real estate attorney (and agent) are going to know the specific laws, rules, and regulations that are in play in a given scenario. I always advise my clients to work with an attorney they trust who will protect them and their interests. Depending on where you are located, I can point you to a number of attorneys that would be happy to connect with you.

 DM me if you want to connect 1-on-1.

@Kevin Keating your best bet is to pick up the phone and call as many folks directly as possible. I've always had the best success when I call a lender, explain the scenario with as many specifics as possible, and get a quote from them. I'll call as many people as I can to get the best possible rate.

I'd also recommend leaning on your network: ask your agent, friends, partners, etc. or anyone else who has experience investing.

Depending on where you're located, I'd be happy to recommend a few people myself. DM me and we can connect.

Welcome to the BP community :)

My 2 cents on this: it seems like partnering up with your friends will allow you to invest more quickly than if you wait and save the money yourself. If this is true, I would definitely encourage you to do so. Any time you go into a financial endeavor with friends (or anyone else for that matter), you want to keep a few things in mind:

-I'd recommend connecting with a lawyer and forming an LLC. When you introduce money to the equation, it's important to protect everyone's interest (financial and otherwise). By forming an LLC with a lawyer - and by getting clear on roles, responsibilities, voting, etc. - everyone will be on the same page when it comes to decision-making. You want to guard against a scenario where you find a deal but your friends say no because they're in charge of the money.

-outline the process beforehand, to the greatest extent possible. While you may have to consider changing course midstream, have a plan of attack before you launch into this partnership. For example, are you searching for SFHs, multi-families, short-term rentals, etc.? Do you have a contractor connection? Who is your attorney? Lender? Real estate agent? Building the team in advance and having a clear goal and making sure all partners are in support is crucial.

Just a couple of initial thoughts - DM me if you want to talk more!

Hi @Paul Meiners! Welcome to the BP community. Given what you shared above, it sounds like you're not an ordinary "newbie," but I appreciate your humility and willingness to learn and grown with everyone else. That's what makes RE Investing so great!

There's a lot to chew on in your post, but I'll try my best to share a few responses and then some advice.

1. You're right; finding a property to do a traditional BRRRR is a tall task in CT right now. With inventory as low as it is and interest rates where they are, it's a challenge to find a property under market value with the chance to force immediate appreciation. Folks are doing it, but it will require lots of patience and a fine tooth comb. I'd recommend getting connected with a trustworthy wholesaler.

2. House hacking another multifamily - especially because you could use an FHA loan sounds like a great way to go. I'm not sure where you live now, but depending on where you're looking, there are lots of great places where you can still house hack for free (the other 2 or 3 tenants pay for your entire mortgage). If your long-term goal is to build out a portfolio of properties, this seems like the best next step to get there. This will allow you to build your portfolio, leverage your current home as a rental and create additional cash flow, and save on paying a mortgage for the time being. If you sock that money away, you'll be able to buy another multifamily in the next year or so.

3. If your goal is to create immediate cash on hand, finding a partner and going in on a flip would be a good option. However, this again is incredibly challenging right now given the low inventory.

4. If you can find a single family that can fit you comfortably, that's a great option, however that will be challenging with $10k saved for a downpayment. 

5. Have you looked into Down Payment Assistance or Time to Own funds? I've worked with a few buyers who have successfully used both to purchase a home despite not having a lot of their own money saved for a Down Payment. The TTO funds tend to run out quickly, so make sure you talk to your agent/lender to make sure they're still available.

This community is a fantastic resource, too! You're smart to post here and get some advice. You'll learn a lot!

Good luck and let me know if you have any questions!

Hi Keith - Welcome to CT; we're happy to have you!

As Sam mentioned, inventory statewide is at all-time low, so if the angle is "can I buy under market value and turn a quick profit?" the likely answer is no. I've done wholesaling in the past, and while some of the massive wholesalers who are saturating the market are having some success, getting started is challenging right now (although not impossible). Sellers know the market is advantageous for them, so not many folks are willing to let their property go for anything lower than market value.

In terms of long-term investing - or even STRs - the market is very strong. Even though property values are increasing by the day, so are rents in many places. SFHs in the right town have very high rents. As one example, I live in Glastonbury and a standard SFH with ~1500sqft, 3 BRs and 1.5bathrooms can fetch well over $3000/month if it's in good condition. The same can be said for multi-family investing.

While you're unlikely to land a true BRRRR and you most definitely have to leave money in the property, cash flow & appreciation is very much strong if you're looking in the right places.

Happy to talk more! Good luck!

@Anthony David What kind of work are you looking to get in particular? Depending on the specific projects I have a whole list of folks I'd refer out. Let me know!

David Constant

Welcome @Kenneth Hadinoto! How's your search going? Any luck?

Hey Kalidas - 

This sounds great! I live right in Glastonbury, so this would be a great fit for me. Unfortunately, I won't be able to make it this week because I'm taking the GHAR Realtor class online right now, but what are some other ways to connect with you and your team? Also, do you host this meet-up at Maggie McFly's every month? Thanks!