All Forum Posts by: Dustin Beam

I'm a partner in a couple smaller complexes that we bought summer of 2019 and beginning of 2020. Covid definitely slowed our ability to turn the units, but regardless, we'll hopefully be able to refinance our money back out for both in the next 6 to 18 months. FWIW, they did not come through a broker, so there isn't a previous broker relationship built by those properties.

I want to introduce myself to local brokers and get to know them, but also don't want to be (or appear to be) a tire kicker. I will have money in the future to buy more, but not right now and no definite date when I will. 

How can I get with brokers without them feeling I'm wasting their time? Or maybe they're used to talking w/ people in a similar situation as me?

If you haven't already, I would visit to get a feel for which area you like.

Determining what is a good deal is really subjective and only you can decide that. 

Yep, see link below

https://www.biggerpockets.com/...

I haven't been on BP in a while, thought I'd give another update if anyone is still reading lol. Good news is I may have more time to learn and hopefully contribute.

I'm finally ready to call it a success story, with the knowledge anything can go south for unforeseen reasons (fingers crossed). The townhouses I bought from the 1031 exchange needed work, 3 were trashed in varying degree. Seven out of eleven were vacant. Got everything fixed for around $40k. Got vacancies filled, and got all rents to market value.

Once I did that, I did a cash out refinance with exception of the $40k. That got left in the deal. It's been about 1.5 years since the refinance and my economic occupancy is almost 100% and they are doing well with positive cashflow.

I used that cash-out money to be a 50% owner of 56 other units (8 unit, 16 unit, and a 32 unit). They are varying stages of getting operating to their potential (all value-add in some capacity). 

So with that, I am 1 week away from leaving my W2. I'll have to see where life takes me, but I'm excited to see and to be in charge of my own time. If anyone reading this is struggling, don't give up!

I don't know how long it will last, but so far I'm in the beginnings of it. 

I bought 12 units out of the gate. After 1. 5 years, I 1031 into 11 units of a higher quality. Almost twice the rent and profitability. So less doors, but I consider it doubling based on profit and property value even if the doors went down. 

Just finished a cash out refinance after owning a little over 1 year.  Using that money, I will try to double again and I'll just have to see where I go from there. I don't expect to double every year or two, but I do hope to stabilize what I *hopefully* buy this year, refinance out and buy more within a couple years of the purchase. 

If all goes well, I hope to own approximately 4x the property value of my first purchase after 4 years. As long as I can cashflow decently after the refinance(s), I'll consider it all a success. We'll see, it's  goal, not an eventuality. 

Yes, you can find them here in KC. However, if cashflow is your goal at all, I don't personally believe the "1% rule" ever works. At least I've never analyzed a deal that works for cashflow once CAP-X, vacancy, maintenance, etc are all considered.

I can't and won't pretend to be the authority on all areas of KCK, but I sold my C class property in Raytown to buy B class in KCK (just east of 435). I couldn't be happier w/ the decision. 

If you're planning on getting a nice 30 year fixed, an LLC will ruin that.

For me, I started an LLC from the get go. Some people will tell you that a good umbrella policy is enough. I don't think there's a one size fits all approach, however I have always intended to be as professional as I can, which to me says "LLC". The only real drawback to an LLC is the financing terms (commercial vs traditional fixed). But again, that's how the big dogs do it, and I always told myself I want to be a big dog too :)

If you plan on investing in 5+ unit buildings, you may as well get an LLC since you'll be in commercial financing anyway.

You're probably right, but hope you're wrong. 

I've been a personal guarantor for my two loans (and will be again on my refinance and likely will again for the property I purchase from the cash out lol).... But what about the larger loans? 

I've been under the impression that once the loan size was large enough (in my mind I assumed $5M, but I don't know why that number is in my head), they basically become non-recourse loans as the loaning institution acknowledges the property must be able to support itself. I may be way off base here though. Would love to be corrected if I'm wrong!