All Forum Posts by: Derek Bailey

Thank you so much @Debra Thomson! Look forward to talking with you, pm sent.

Thanks @Matt Shields! Good points. I'll send you a PM, always enjoy connecting with professionals. 

Hey BP community. I'm looking at a few multifamily properties in the Phoenix area (85301, 85020, 85007 areas). I was wondering if anyone could recommend any local property managers. Some of the units need extensive rehab so a PM that can handle everything would be great. I am in the due diligence period and haven't closed on the properties yet. Any insight on the area, especially from the locals, is greatly appreciated. Thank you guys!

Hey BP community. I'm looking at a multifamily property in Tucson, the 85713 area. I was wondering if anyone could recommend any local property managers. Some of the units need extensive rehab so a PM that can handle everything would be great. I am in the due diligence period and haven't closed on the property yet. Any insight on the area, especially from the locals, is greatly appreciated. Thank you guys! 

@Skyler Mckinney

Sorry for the delayed response, been hectic. 

With the details you now mentioned in the second post yes, I can certainly see some difficulty trying to accomplish what you're doing. Did you have any success at the local meet up? 

Hey Elijah, 

What parameters are you looking for in your investment deals? Everyone's are different. For me, I like to get 12% Cash on Cash and $150 per door in cash flow. I'm using a leveraged approached so those numbers are what work for me. Many people will say my cash flow is too low but I try to keep a minimal amount of my money in a deal. 

But with that being said, I would personally pass on this deal (I would need $300 cash flow, 12% cash on cash and get my money back). Your Cash on Cash is single digits (you could get that with an ETF) and your cash flow is too low for having your money tied up and taking several years to get a positive annual return. 

Disclaimer: everyone's situation is different and I don't know your goals. I would like to connect and talk further if you'd like. 

Best, 

Derek 

@Greg Van Brunt I forgot one thing, I believe you can use your VA loan on a multifamily. So, find a multifamily that works and house hack.

Hey Skyler,

You stated you've ran out of houses, have you looked at multifamily? Because you could house hack a multifamily property and probably get the most bang for your buck utilizing a VA loan. And if you aren't looking at multifamily how are you using a VA loan to secure a investment property, I thought VA loans had to be used on a primary residence?

As far as your other options; creative financing. You could partner with someone, use Hard Money or Private Money, or owner financing among other things. By utilizing a few of these you could open yourself up to auctions, direct mail, etc. 

Thank you for your service.

Best, 

Derek

Hey Greg, 

I don't qualify as a "recently successful newbie" but I wanted to chime in. I'm in a similar situation as you in looking for properties and debating between what's "acceptable" for a beginner. 

I think only you can answer the question though. It depends on your ultimate goals and risk tolerance. Starting out can be frustrating but it's a learning experience, everyone has to start somewhere. My commitment is to MAKE REI work in the pursuit of financial freedom, so with that being said I'll tackle any project. It may not be easy, it may not be extremely profitable but if you've watched Brandon Turner speak he always talks about building momentum. You have to start somewhere and I don't think you're doomed to start with a complete rehab (although I would avoid foundation issues).

The quick answer, I think it's growing pains. I would keep saving because you always need capital but we can always think outside the box too (partnerships, Hard Money, Private Money, Owner Carry, etc). And all debt isn't bad, find something and make the numbers work for you. 

A book I'd recommend based on your post is "Wealth Can't Wait" by David Osborn and Paul Morris, amazing book. And thank you for your service. 

Best, 

Derek 

@Frank Leone that's great man. Having a supportive cast is crucial. Thanks for the vote of confidence! It'll be a fun journey at the absolute least. I've made a few offers (and have a few waiting responses right now) but haven't closed a deal yet. Soon though.

 I just bought that book of Brandon's last week actually, I'll be reading it shortly. 

Good luck man!

Best, 

Derek