All Forum Posts by: Derek Bailey

@Colin Thompson

Hi! I'm not sure I can really help you but I just wanted to say your lifestyle is AWESOME! I've had the urge to do something similar so often but haven't been able to pull the trigger yet. And, that's a sweet van! 

I am in a similar situation as you though; looking to buy value add multifamily properties for passive income and I've looked at most of those markets. So I'm interested to see what the successful investors have to say on the topic. 

Sorry I'm not more help but just wanted to commend you on your lifestyle. Stay safe out there on the road and good luck! We should connect. 

Best, 

Derek 

Hi

@Dale E. Matheny and @Addison Good, I'm also beginning and have been looking at the Columbus area. Would enjoy connecting with you guys! 

Best, 

Derek  

@Frank Leone 

I'm looking to buy multifamily properties in B or C+ neighborhoods that need rehab or have another value add feature available. I'm in a unique situation because my current employer is going out of business in 4 years.... Challenge Accepted! So I need to recycle my funds in order to acquire more properties in a short amount of time. My plan is to use Brandon Turner's "Stack Method" and acquire 8 doors this year, then so on. 

My long term goal is financial freedom, I spent my 20s grinding away thinking all debt was bad and the stock market would do it for me. But more specifically, to acquire the doors necessary to not be forced to find another job in 4 years. 

Fortune favors the bold.  

Best, 

Derek 

Hey Jose, 

My two cents is only you can define a deal. Only you know what works for you and what you're willing to deal with. I'm sure more experienced investors will have a lot better advice. lol. I've ran across "weird" properties too that make me hesitant but I think mostly anything can be made into a profitable deal. It appears from the picture that the neighbors are in a similar situation....? Is this the norm in that area? 

I notice you're in Omaha, I've been looking at properties there. We should connect.

Best, 

Derek 

Hey Ray, 

I'm in a similar spot as you as my wife and I are looking for our first investment also! It's exciting but nerve wracking too. I can't offer any advice regarding Houston but regarding books... I'm sure you're aware every week on the podcasts they ask the guests for two of their favorite books and Brandon Turner has a list of his top 20 must reads for real estate investing so those are great sources. 

Personally, my favorites are...

ABCs of Real Estate Investing by Ken McElroy

Wealth Can't Wait by David Osborn and Paul Morris (about SO much more than investing, about life and it's amazing. both have appeared on the podcast)

and you can't go wrong with Brandon Turner's books.

Best, 

Derek

Hey Kweku, 

Interesting topic. From my short time (2 months) diving into RE investing and BP I personally wouldn't hire an agency or a "guru". Watching probably over 100 podcasts by now it seems the majority of successful investors are against this practice as well. BP is a HUGE resource and I'm certain you could find anything you need or want on here by networking; and the best part, it's all free. The members of BP are extremely knowledgeable and helpful, post the deal on here and get their opinion, don't hire an agency. 

I do always like to understand both sides of the argument though. IF this agency knew the area or market you were referring to, maybe they were right, it's not a deal that fits their scope of work. Doesn't mean the deal can't work for you. Hope that helps.

Best, 

Derek

Hey Frank, 

I'm new to BP and RE investing  (I've made several offers but no deals secured yet) so take my advice with a grain of salt but I think what you're going to get a lot of is... "it depends." 

The experienced investors may be able to help out more if you clarified what your end goal/strategy is. Are you looking for quality or quantity on your properties? Appreciation or cash flow? How much work are you willing to do, etc, etc...

My two cents; I prefer to be leveraged and want to use the velocity of money to my advantage. I think the most advantageous way to do that is to find value add properties that I can force appreciation. And I believe cash flow is king; appreciation is a nice added bonus. So, I'd personally choose the 4 units. Hope that helps.

Best, 

Derek 

Hey BP Community, 

I've been researching a lot and I'm potentially looking to invest in the Cleveland market, looking for a turnkey multifamily home. I'm out of state and was wondering if anyone had any Agents and/or Property Management companies they prefer. Of course, all input is appreciated. Thanks guys

Derek

Hello BP Community. I'm completely new to Real Estate Investing and have been reading, listening and watching on BP for hours a day since learning of it a week ago. My title pretty much says it all. Although I have gotten a tremendous amount of information I'm looking for some advice on how to start my journey; what you wish you would've done, or have learned from, how to start quickly, etc.

I want to get in to rental properties and my biggest concern is capital. The lender I'm currently working with said 20% down and 25% on multifamily. My thought as of right now is I can buy 1 or 2 rental properties but then what? How do I continue to accrue more properties? I know there's information and calculations I'm missing. Are 1 or 2 houses better or is a four-plex better? I know that like so many things will "depend" but I'm just curious. Since I'm just starting out should I even THINK about looking out of state for a multi-family and hire a property manager? 

A little back story to make things more interesting; I do have equity in my home available. My credit score is "good-great". My income-to debt ratio is good and my (current) lender so money won't be a problem other than the 20% down which in my opinion is a huge problem! I have liquid money but would like to not rely on (or use) that too heavily in the case of vacancies, unforeseen repairs and things like that until I can save for those types of events. Am I looking at it wrong?  And the icing on the cake, I work at a coal-fired power plant and will be out of a job in 4 years due to the shutdown. I 100% KNOW that this is not a "get rich quick" game, I realize that, but is it completely crazy to think I can accrue enough rentals in 4 years to not have to get another job with this type of salary? 

Thanks in advance for your responses, ideas and all the information this community is so willing to share.