All Forum Posts by: Nate Flickinger

Everyone, thank you for all of your words of advice. Good to get perspective.

I wasn't clear with my $100 takeaway. That was $100 per door left over each month after accounting for management fees and conservative estimates on repairs, etc. Is that not a good place to start. Isn't that the figure that Mr. Turner often throws out? I am certain that more than $100/door would be better. But as far as getting into it and getting that as a takeaway with no money invested...

I agree that the deal offering is not ideal. I think regardless of the amount borrowed, it would take about 14 years to pay down 20 % of that note if we only paid the minimum monthlys. If we could get multiple properties at a time and jump start our journey we'd be able to focus multiple cash flows to hasten the payment on one unit at a time to get it into our possession more quickly.  Is there such thing as a typical arrangement between investor and investee?  Good mention on scale-able rates, I'll have to check.

@JD Martin  could I please ask for some clarity on your formula? I think I'm missing a beat.  All of the numbers that make up formula, are those the monthly or annual amounts? How is interest represented (if it's 8.5%), as the percentage or as the dollar amount  it amounts to? And what does that resulting number tell me?  Apologies on my green-ness.

For sure, we are looking at traditional hard money loans with their better rates and the fact that we'd own.  Just being aware of all of our options.

Again, I than you all!

Hope you all have a great Wednesday!

Nate 

Hello Community,

We have an investor! Our investor is willing to loan 100% of the price, but wants the property in their name until 20% it is paid off. With  an 8.5% over 30 years note.  I am concerned with how long it could take to get 20% paid off and therefore how long to get the property under a traditional mortgage. 

With that, how would the logistics work on paper? Investor owns the property, but we would would manage it? Could we run the entire operations of a property without having our names anywhere? Getting insurance, hiring a management company, etc.? We have not formed an LLC at this time. But I'm wondering if it would make any sense to do that until we actually had properties/assets to protect?

A further conversation is required with the investor to learn how many properties they are willing to loan on at a time. If it is multiple then part of me feels that the terms are maybe no big deal. In one light it is free money. As long as the numbers on a deal work, we put no money down but get the payout of that >$100/door. Plus, if we can grab 6 deals  we can focus on paying down one property at a time to get it transferred to our ownership.

I am grateful for the opportunity that this investor is providing. I'm just having a tough time wrapping my head around it as a concept. Seems different than most other investor relationships I've heard about.

I would be grateful to hear any thoughts of concerns or delight that you all may have. Also open to other arrangements that we could offer to the investor that will still net them a great reward, but may be easier logistically. If that is possible or even a concern.

Thank you thank you!

Nate Flickinger

SW Virginia Area

Getting into real estate investing. SFHs & multifamilies for now . Looking for a CPA knowledgeable of Virginia.

I don't necessarily need someone in VA, more than happy to work long distance with a good CPA.

Thank you!

Nate

Hello regional family!

@Jeremy Hart & @Jason Grimm Congratulations on the new additions. Enjoy the ride! Our guy is 4 now, but I kinda remember those first 6 months. A beautiful blur it was.

I have been wanting to get involved with rei for a while but am just now at a place where I'm going to be able to sink my teeth in. I'm wanting to start out close to home with my first investment, but Floyd is a bit of a tough spot. Harder to find a brrr here. Most sfh are priced too high relative to the rents they could get. Rentals are in high demand, but more for the $4-500 unit. 

Definitely find myself looking to Roanoke and the cburg/bburg area mls for properties.  @Matt Castle, may now peak at Abingdon a little, too. 

Glad to have stumbled upon this thread. 

Nate

Hello Bigger community!

We are just getting into rei. I was wondering if any of you had any guiding words on the following?

Our situation in a broad stroke:

We will be completing an addition on our primary residence. When completed we should conservatively have $32,000 in equity to play with. More if we got into a 90-95% ltv loan. With that we can either build a small apartment on our 2 acres to rent out on Airbnb or use as down payment on a brrr move. Airbnb is relatively hot around us and we are located very close to two places that host classes/seminars/etc.

Any initial gut thoughts?

Our preference is that whatever we invest in can "quickly" develop equity that can be used for the next investment. I am motivated and ready to not have a 9-5 much longer. Don't want to do something that could stall forward momentum. 

I am currently drawn more to the apartment due to its proximity to our house and ease of maintaining our first investment. Hard to know for sure how much the Airbnb could make, while I can more easily run firm numbers on a potential investment. Is that Airbnb analyst tool/subscription worth looking at? If Airbnb doesn't suffice we can always rent it. Rentals are in high demand around here but in short supply.

Here is a fear; with the addition of the apartment on the land I would hope for a yet higher appraisal to be able to use for investing, but is that something to lean on? I am hesitant to rely on that as there are not many comps in the area. If we are adding any square footage of livable space to our property shouldn't the value go up? 

I thank you all in advanced for your experienced words. I love this community and what it is about. 

Hope to speak soon,

Nate

John, Paul, Paul and Joe,

Thank you for the good words! I am digging into all those good things.

Joe, thanks for the Blacksburg specifics. I do think there is a lot of potential here, too. Many single family homes and a multi fam every once in a while. Its a good challenge to find anything that has a rent greater than 1%. But just a matter of staying aware of what's going on and properly approaching s situation when it arises.

What an exciting endeavor.

Nate

Hello community!

Nate Flickinger from New River Valley area of Virginia checking in. 

My wife and I are wanting to get into real estate via rental properties, primarily. Looking for that residusl income. Flipping is a pissibility. I have carpentry/building skills that I'm hoping will help out with this pursuit. 

The area around us has two college towns, Blacksburg and Radford. 

I look forward to getting involved in this community. I hope to glean much knowledge and to someday be able to share some of my own.

All the best!

Nate