All Forum Posts by: David Garner

Quote from @Mo Khidir:

Hi All, 
 
In Portland, OR., found a mixed use (residential and commercial/medical) 3/2 unit in northern Milwaukie (ADA accessible, x ray viewers, etc.) in nice little street. Also found a move-in ready 3/2.5 (1400 sq ft) in desirable townhome community.

Townhome is 10k more but I will have to install stove, fridge, and kitchen sink/counter into medical SFH.

Question is whether it's better to have a property with land ( 1300sq ft home, .11 lot with garden) in an OK area with potential to rent out for commercial use or a townhome (~250/Mo HOA) if all things being equal.

Thanks in advance!

Hey Mo... Great news on finding a potential deal. My experience has taught me that you should do some research and find out specifically what's best for that local market. In on area there might be demand for one thing, in another area something else. Speak to local Realtors and ask their opinion... what would they prefer to be listing for sale or rent. Then you'll have your answer. Good luck, DG.

Quote from @Alec Strahl:

@David Garner

Are these all Brrrr properties you are buying or some traditional 25% down you are buying at 65% ARV

Hey Alec.... most of what I buy is off market, distressed condition and/or motivated sellers. I buy all cash with our own money or private money.

Quote from @Damion Williamson:

Quote from @David Garner:

Quote from @Damion Williamson:

@David Garner Hello David, love this idea. Ive been looking for off market deals for a while now to buy my first duplex house hack in florida but cant find any. How do you find these market deals. If you have any advice i would love to hear them.

Hey Damion - Good to see you're looking off-market. It's absolutely the way to go in the current market. There are a ton of ways to find off-market deals, and I certainly don't profess to be an expert. Because I'm Out of State, when I need a function like that in my business, I hire someone that's already doing it well. Doing things that way costs me more money, but ultimately I can't be there to do the time consuming job of finding the deals myself, and I can't spend the time learning a new skill that someone else is already doing better than I could.

I'll leave it to someone else on here to talk about the specifics of lead generation for off market deals, but this year so far I have bought houses out of probate estates, form retiring investors, from folk that are moving out of state, from a divorcing couple, and from a homeowner that had massive repairs they couldn't afford.

 Hello David, even though I'm not looking for out-of-state properties this is some valuable information and I appreciate your feedback thank you. 

You are very welcome, Sir!

Quote from @Damion Williamson:

@David Garner Hello David, love this idea. Ive been looking for off market deals for a while now to buy my first duplex house hack in florida but cant find any. How do you find these market deals. If you have any advice i would love to hear them.

Hey Damion - Good to see you're looking off-market. It's absolutely the way to go in the current market. There are a ton of ways to find off-market deals, and I certainly don't profess to be an expert. Because I'm Out of State, when I need a function like that in my business, I hire someone that's already doing it well. Doing things that way costs me more money, but ultimately I can't be there to do the time consuming job of finding the deals myself, and I can't spend the time learning a new skill that someone else is already doing better than I could.

I'll leave it to someone else on here to talk about the specifics of lead generation for off market deals, but this year so far I have bought houses out of probate estates, form retiring investors, from folk that are moving out of state, from a divorcing couple, and from a homeowner that had massive repairs they couldn't afford.

Hey Kyle

Great news that a potential deal came knocking on your door! That's awesome!

I buy most of my houses with private money. I have been building my reputation with my lenders by doing what I say I'll do for 5 years, so they're more flexible on terms for me than is typical for new private lenders or hard money guys doing deals with strangers.

In my experience, a private money loan will get you much more favourable terms than pro hard money (longer term, lower rate, less fees/points) but ultimately its down to the specific deal you do with the lender, and how comfortable they are with you. 

I have lenders I have never personally met that loan me 100% of purchase and rehab and have funded multiple deals for me. On the other hand, we had a lady come visit us a week or so ago, visit the properties, pull my credit, do a background check, speak to referals, review all the paperwork, see previous projects and spend time with my team, and she just ghosted me completely. The moral of the story is, what you offer just isnt going to be right for some folk, and that's OK. The last thing you want is a long term relationship with a nervous lender thats over commited and isnt really comfortable in the deal.

In your situation, I'd start within your existing network of friends, family and coleagues, and work out from there to try and find a lender with whom you already have some kind of relationship.

You could also ask the seller if they'd carry a note and then look to refinace later.

Good luck

DG

I applaud your desire to work and learn, Fisher! Its so very refreshing to someone so young taking positive action!

At this stage, I would go find someone doing what you wany to do, and offer them some value (whatever they particularly need), in exchange for shadowing/aprenticing/learning from them. 

There are lots of aspect software the real estate cycle that have entry points. Property management, construction, realtors assistant, shadowning investors, assissting lenders.

Figure out what you want/need to learn most and start there.

Good luck

DG

Hey John

Great that you have the foundation of a plan. 

If you're end goal is low maintenance passive income, one option is to use your W2 income to build a portfolio of more passive investments like;

Performing Notes

Private lending

Syndications

I have over 100 rentals, and they are NOT passive. I started hiring people in-house from about 25 units, and even now with a fill team looking f after most aspects of the day to day business I'm now a full time people/team manager. 

The most passive investments I made have been in good quality paper... both perforning notes and private lending deals.

Whatever you decide to do, I wish you the best of luck.

DG

Hey Tequa

Find a private lender that will lend whatever the wholesaler is offering plus rehab. Sounds like that will still be a decent LTV for the lender

Then buy it, rehab it, and refi it.... or do a longer term deal with the PML. I've done that type of deal and/or variations thereof plenty of times.

Good luck!

DG

Quote from @Nick Coons:

@David Garner I would love to know some specifics if you're interested in sharing. I've only "theoretically" heard of 65%, not seen it in practice and certainly not as a "usual". :-)

Hi Nick... I buy mostly C Class houses in areas with at least some potential... I have bought 104 in the past 5 years. As an example, I received an offer today for a house (716 N Mercer St, New Castle, PA). I bought it for $27.5k, we out about $10k into it, and got an offer of $70k today. BPO came in at $75k to $82k, so we're countering at $75k. If we keep it will rent for 900/month.

Hey Matthew -

So, I've kinda done something similar.

I have bought 104 rental properties in 2 US States while being based mostly in the UK in the past 5 years. It can be done! I also have investors in my lending program that are based in CA who have funded loans as far away as PA, so that can be done too.

It's taken me 5 years to build the team I have today, so it's great if you already have boots on the ground in the market you're looking at. Having your Wife's Sister there gives you a head start, so that might be a great market to start looking for a deal in.

Good luck!