All Forum Posts by: Alex Olson

@Lisa Thompson Bigger pockets authors have some good books. The guide to no money down real estate investing is a great one to start with. Real Estate investing for dummies is decent as well. 

Yes Dan Foster, Foster Construction. I would also recommend attending a KC real estate meet up. You will meet experts there that can guide you to the right people. It is very difffuclt to find a good contractor that does the right things. Call around to friends and family to find who they have good experience with. If you would like to chat further, dm me. 

@Chris London Yes banks do this. You just have to find the right on in your metro or state. Cost to refi is dependent on value of the package, how much is owed on the packaged and how much income the package generates. Find investment friendly banks and stay away from large regional banks that "might consider doing investment loans." 

I can only speak for KC because that is where I invest in and broker multifamily deals in. KC region has pretty low taxes (Kansas seems to have higher property taxes), have a fair about of $300k or less duplexes, but fourplexes are hard to find that are not crazy expensive and even when they are on the market they go fast. Based on my market research Cleveland and KC are similar in terms of returns right now but KC is higher priced. If you do decide to look at other markets I would work with a good brokerage firm that knows the market well and can build a relationship with them. 

@Andrew Davis I would find a more investor friendly bank. It sounds like this appraisal was done only on the value method rather than the income method. I would call around, ask other banks what they think it is worth. Some times, if they know it is worth a lot more than you owe or paid for it they won't even do a full appraisal. They will just do a bank appraisal. Hope this helps!

@Lisa Clouse Is this a hard money loan (sounds like it)? Yes, it does sound reasonable but be ware of scams like refinance terms, prepayment fee, and other issues. I would have a bank lined up before going this route. Is your credit poor or why are you going this route?

@Ben Kwon I would recommend networking (local events or even on this site) to find other investors who have invested out of state and have had good returns. I have had many CA clients invest in KC. Find a recommendation of a PM, inspector, lender, and insurance (a good broker/agent should be able to do this). Build trust in a single agent with the promise of using them to buy your first property. With video chat technology, long distance isn't difficult to get around.

@Mindy Jensen thanks. Powerful insight. Good analysis.

@Nik S. Yes some banks are very strict. You could actually switch to a more favorable bank depending on what the issue with the property is and where it is located to get more of a favorable use of the funds. But, if it is of paramount importance, a bank may require items to be fixed prior to closing.

@Tony Sepassi The only thing I would consider is appreciation. Is it going to appreciate at 10% a year? Are rents going up a lot? Are they under rented? Cap rate and current cash flow is only part of the deal. If you do your own underwriting, I am sure you know this, but I would input market rents vs actual to see if there is any upside. And, look at appreciation rates. I know I am late to this but hope it helps.