All Forum Posts by: Justin Hoggatt

Hey @Anthony Flores - great job on moving forward! I was once told that getting multiple loans was hard to do - but it all depends on your lender and how well the cash flow is on them. I don't know if it's still an option, but up through 4 SFR I was able to only put down 15% on those properties in Colorado. After 4 it went up to 20%. Although, I don't do SFR anymore - just apartments and now moving into another asset class. I have a couple lenders that I could recommend that are very experienced and willing to help as best as possible for your given situation if you want to send me a message.

I like what @Allan Smith said about the questions.  You will find that you're likely the one that is more uncomfortable asking than how they will feel when being asked.  It may depend on how close you are to them, but they usually will know exactly what they will invest with you and you just have to ask.  If they are very close, then the returns are likely to be lower for them because they really want to help you out.  You can do a promissory note for them and just give them a regular interest rate or the like, or you can bring them into the deal and give them equity, or both.  It will also depend on your situation - do you have enough capital and assets to get approved for the loan or will you need a partner in that too?  Since you're a contractor, I think you can leverage the fact that you have the team in place and you'll be able to put in the sweat equity on a project that may need rehab, so use that to your advantage as well.  

I think another important question might be - what is YOUR plan and goals?  You will need that figured out first because if you don't know, why would they know what they would want to do with you.  So, make sure you're ready for those hard questions in return when talking about them investing with you.

Good luck!

I think we all have a similar response here.  Basically the appraiser isn't on the sellers side, it's his license on the line and he will look at comparables.  Sometimes a home will suffer by the others around it (like updates done or not done) and you've likely heard that you shouldn't buy the most expensive home in the neighborhood because the value of is dragged down by the other lower priced homes around it.  The same is true with a home on the lower end of the spectrum.  I do know that inventory is low, prices are high, and buyers are struggling to find good options.  You may be in a great situation in that you aren't competing with other buyers if you're able to get the deal off market.  Also, remember, he doesn't have to sell to you and he seems to be taking the fair approach and going with an appraisal and not just spouting off a number.

If you feel it's worth less, come up with a compelling argument and negotiate.  Find out his motivations.  Why would he want to sell?  What does he gain out of it?  Would he eliminate the land lording headache?  Would he be able to take those proceeds and do something great with it? - retire, get a bigger property, send a kid to college?  If you tug on emotions, that can help you situation, otherwise you may want to consider taking what you can get and see how the value for you may be more than just the price.  After all, you are paying rent and not gaining equity out of it.

@Elizabeth Beard, I can understand how hard it is to find the right people.  That can mean good at what they do, good business sense, and also not too expensive.  It becomes a hard endeavor and once you find someone, just hope you have them around for awhile!

I would suggest finding some recommendations from your local clubs and REIA groups. There are sometimes people very willing to share their subs or at least know someone that might have availability. Also, if you have anyone that you have as a mentor or sharing their experience with you locally might be able to lead you in the right direction. Calling people from Google, Angie's List, etc will only end in frustration unless they are new and just went off on their own. Sometimes the guys that have the lowest review count can be open to negotiating and aren't the "too buys" type of guys.

For payment, I agree with Evan.  Who's to say what a percentage is?  Would you be able to discern that that is?  Would he?  So, only pay for things when completed.  Trust me, you can make something look mostly done and progress is made, but it's always the little things and the finish work that take the most time and labor so even though it may look close, it may actually be far from completion.  I don't mind giving materials deposits but the contractor should be willing to put his time and energy into the project until completion without complaining, otherwise, he's likely to only be out for money and not out to complete the project and have a satisfied customer.

@Derek Meyer - I think it depends on the details of what you're talking about.  What is the downpayment for?  Is it for a first primary residence, is it for a rental property, a multi-family, etc?  With that detail, it will then determine the percentage needed.  The next piece would be the planned purchase price?

The other areas that may be a big concern would be debt pay down.  Does your friend have good credit?  

Aside from those details, the first downpayment is often from saving and preparing, however, family members are often also super helpful to get you started and we've received help and investment from family members as well - but we've also provided amazing returns in exchange.  If your friend has a business, maybe he can pull some equity/loan against it?  Maybe he sells off an expensive vehicle?  Maybe he gets a business loan.  Often times starting with the end goal and working backwards can create the plan and provide the light to your questions.

Hey, @Account Closed.  I tried reading through your plan and want to try and help and at least provide my opinion on the matter.  Honestly, however, I couldn't quite follow what it is your really asking.  Maybe that is because there are so many details and moving parts.  

@Colby GeDeros, it sounds awesome that you've found such a passion for real estate!  I wish you much success!

There are so many different options and that's what I love about real estate as well. You basically can never stop learning and growing. There are also many different solutions to getting started and with all the variables, only you can ultimately decide on the best course. What I can say is that it often helps to have a job when getting into real estate. It helps your cash flow and ultimately it will help you get a loan if needed on SFR. Plus, don't forget, if you go this route, you'll then become a landlord, which is different than some of your options as well. If you are looking to go full bore into RE then I think the first steps may be getting into the wholesaling/contractor/flipping options. Those are areas that can provide income/deals that won't require you having a job, but know that it will take some time to get started in a new market after your move.

If you got the real estate agent route, it will teach you a lot on how deals happen and some of the ins and outs of how things work and can go wrong.  It will also put you in contact with people in your area, but again, this will take some time to get off the ground.  Don't forget this path is running your own business, it has to be fed and nurtured for it to succeed.

Ultimately, I think you keep learning, making steps in the right direction, and then you'll find your path in what you really like.  IMHO, I think #3 in your goals area may be the best idea for the immediate future.  All the options that you mentioned have nuances and really are different "jobs" that you may or may not like.  Keep it to what you like.  

@Cassandra Lowe, it sounds like you may be frustrated by the situation.  As a landlord, yes, rents can continue to be increased, as do our expenses, taxes, insurance, utilities, maintenance, etc on all properties.  That certainly seems like a large increase and it probably comes as a huge shock.  What your landlord has provided is a very gracious notice of 90 days.  It would seems that they realize it would be hard to take on that type of increase and have provided an ample amount of time for you to find a new place should you desire.

Hey, @Account Closed said, we're certainly active in looking at potential deals that fit our model around the US and making calls and connecting with leads in the SE.  I went to University of Tennessee and am very tied to that area of the country and love it!  My parents also live in one the fasting growing areas of the country, The Villages, FL so it would be nice to have an RV Park near them as well.  I think it sounds great if we all connect and move forward together - it seems as though there aren't that many RV Park and Campground investors on this platform, but I know that there is a growing buyer group in this area.

@Andrew Casal, I always love this question.  It is something I think that we all deal with is maintaining motivation and mindset because whether you are a beginner or moving on to the next level, there is still the need to continue the motivation or change your mindset.  

For me, I've always been a very goal oriented person.  When I set my mind to something, I get it done.  I don't stop and I don't quit.  You'll run into road blocks and various hiccups and that's okay.  Just know that you'll find the answer and carry on.  That will include deals not working out, it will include a lot of time "wasted" but is a learning experience, and properties that just seem to have a lot go wrong all at once - to name a few.

For me, I've been working on changing over to a new asset class for myself along with my business partner @Adam Lendi, RV Parks and Campgrounds.  We've been doing a lot of work on getting that going and we haven't always won.  But what we have done is gain experience and knowledge on a lot of other things along the way, even allowing us to focus on a new Wealth Watchers group and podcast.  If you realize that there will always be naysayers and negativity out there and ignore it, you'll also see a ton of positivity and others that are willing to help you get going.  Continue to stay focused, set those goals, allow yourself some time, and that ball WILL get rolling.

Good Luck!