All Forum Posts by: Jeff Joachim

 Awesome insight Edwin! I definitely will reach out to learn more about how you got started and were able to scale over the years. To add a little more perspective, the private lender and I were having a discussion about how she owned a few properties after doing deed in lieu of foreclosures with borrowers in default. Despite owning the properties at 50% of the After Repair Value, she still preferred to sell them at a deep discount rather than complete the rehab. It led me to wonder are private lenders making so much money deploying capital, that the opportunity cost of completing the rehab outweighs the benefit of completing the rehab. Understandably, everyone's situation is different than this one individual lender. I was just curious to hear from others that have made the switch from flipper/landlord to private lending if they found it to be more lucrative or enjoyable. 

I had an interesting conversation with a private lender the other day. She informed me that she hates owning property. She claims a file cabinet full of notes brings her more joy than a portfolio of investment properties. For many of us we are trying to figure out how to get as many doors as possible. Have any of you made a transition from owning a ton of properties, to private lending and wish you made it happen sooner in retrospect? Has being a lender proven scalable, more profitable, or given you a better quality of life over rehabbing or owning rental property?  Do any of you really enjoy a hybrid of lending your own capital, while actively investing?  

@Christian Francois, congrats on deciding to step out into investing! Getting your license isn't necessary, but it can help. At some point you will most likely need an investor friendly agent on your team. If you don't mind collaborating with one, then there is no need. A majority of agents claim they are investor friendly (no one is going to turn away investor business), but many lack the ability to analyze deals from the vantage point of an investor. As someone that started in this business broke and without any connections I used my career as a Realtor to get started in investing. I was able to use the income and connections as a Realtor to become a wholesaler, open a real estate brokerage, and of course become an investor myself. We have been able to carve out a nice niche here in Orlando, FL of operating a real estate and title company owned by real estate investors with the purpose of helping other investors. The experience of working on a couple thousand investment deals with clients has proven valuable. We have been able to get key insights on different investment strategies, different areas investors are buying in, learn from other investor successes, see which lenders are reliable, get referrals for contractors, create a vast network of investor friendly vendors and resources. 

If you cannot find a broker with a proven track record and expertise working with investors, then I'd recommend becoming self-taught, or working for a commercial brokerage. There really is no wrong path, just a matter of your preference.

Best of luck!

@Maranda Tucker , I did cash for keys several times here in Orlando, FL when I used to purchase properties on the auction. It might not be right for every situation, but it worked for me. Basically, I take a compassionate "I understand things happen approach" and let them know I'm offering them a lifeline. I would start with $500 if they could vacate within 30 days, and $1k if they could do it in 2 weeks. The rule is that while they are in the process of vacating, they need to allow me to get access to the property to conduct any showings, get repair estimates, etc. In addition, they have to ensure the property completely empty and swept clean when they vacate in order to receive the funds. I once had a house full of hoarders that filled up an entire 30 yard dumpster for $1,000. 

Best of luck!

@Matthew B. My gut tells me that it would be more beneficial to run with more loans, and not having negative cash flow on individual properties if those were my options. Compromising the integrity of the individual performance of each property in favor of fewer loans and a bump in cash flow isn't worth it. In the event you ever have to liquidate individual properties in your portfolio, or the market takes a turn, you are instantly converted into a distressed seller. It is easier to sell individual successfully performing properties vs trying to move the entire portfolio.

If you are unhappy with both scenarios, I'd keep digging to find better options vs jeopardize your portfolio.  

Aside from being an investor that does investment deals throughout Florida and Ohio, I also am a real estate broker and owner of a title company that specializes in helping investor's with their portfolio. If you need help with anything, I'd be happy to share any resources I have. 

@Langdon Barnes Congrats on the baby and looking to grow as an investor. 

Here are few tips on things that I appreciate when someone asks me to mentor them:

1. First think of how you can help a mentor before thinking of how they can help you.  This will most likely come in the form of offering the mentor time (working for them), money, or a teaching them a skillset they have a desire to learn. I come from the mindset of first looking to add value to others before making any requests.

2. Offer to buy them lunch, dinner, coffee to learn more about them. I was honored to be able to buy one of my first potential mentor's a meal and hear about his investment journey. I learned what books he read, his purpose, and where he was heading next. Armed with this information, I read the books he suggested, and started doing research to help him find the deals he was looking for next. The conversation over lunch solidified that he was the type of person, I wanted to learn from. This served as interview process to see if he was a good fit, and also a way to learn how I could add value.

3. Have a clear (preferably written down) vision of what your goals are, what you are looking to learn from this mentor and how they can help. A lot of accomplished folks/mentors, are extremely busy. Coming prepared and being effective at communicating your vision will earn you a great deal of respect. 

4. Once you have your vision outlined, be a little more specific and add to this thread. Example: I'm looking to find a mentor that I can shadow in Northern Kentucky. My goals are to learn how to acquire, analyze properties, and manage the finances surrounding investment properties. I don't have much money, but I'm willing to do grunt work and buy lunch. I'm also an expert in trading Cryptocurrency, a black belt in Jiujitsu, can bake the best cookies this side of the equator, I'm the only one that knows what an NFT really is, and I am great at telling jokes.  If my mentor is out there and wants help with any of those things, I'm out here in the metaverse, waiting to meet you in the real world.

Best of luck!

@Matthew B., congrats on having a successful portfolio that you own free and clear. 

I'd probably start by doing the following:

1. Rank your properties in a spreadsheet with priority given to properties with the most equity and highest cap rate/yield.  

2. I would add a column specifying the max amount you would be able to borrow without falling into negative leverage from each property. Example: Property A- you can pull $30k max, based on a loan payment of XYZ dollars and still be in the clear. 

3. Total up the amount of equity you can safely pull from each property based on your goals. For example, the goal would be to know 7 of the 10 properties you own would allow you to pull a total of $180k. 

4. Armed with the knowledge that you have access to up to $180k in capital, you have a budget to work with. If you only need $50k for your next project, then you may be able to simply pull a line on just 1 or 2 properties. If you are ready to start firing away with all of your available capital and want to try to save some money on lender fees, then do a blanket loan. 

Best of luck!

Hey @Zack Eastwood congrats on dipping your toe in the multifamily market. As someone that was intimidated by the thought of even getting started in investing in real estate, with no connections or resources when I first started, I can definitely relate. I've been fortunate enough to go from seeking information, to sharing the information I have learned along the way. The strength of the bigger pockets community revolves around great folks that are willing to take the time to share the information they struggled to learn, so you don't have to. In the same manner, anybody that is worth their weight in the multifamily investing space started with a vision and needed some kind of guidance. Chances are if you encounter someone that isn't patient enough to sit with you, learn about your needs and help you develop a plan as you explore multifamily investing you are talking to the wrong broker. 

To make the best of your time, I would do the following:

1. Take some time to write down your goals, benchmarks and overall vision for transitioning for multifamily. If someone is going to help you, they are going to want to see that you have thought your plan out. Being prepared with notes and clarity is a great way to earn respect.

2. If you are just in the research phase and you are not in the position to purchase that is fine. Just let the broker or associate you are dealing with know, so they can prioritize their time, and don't have any false expectations. Since they would essentially be working for free, being prepared with a clear vision (step 1) will allow them to be more efficient when helping you. 

3. I think BiggerPockets just added a "Find An Agent" tab that may be helpful to you.

I'm a broker and investor here in Orlando that specializes in single family investments, small multifamily projects, and wholesale deals. I'm humbled and inspired every day when people come in and share their vision with our team.

I am not an expert in multifamily, but we have the experience of closing a few thousand single family, quad, and triplex deals along the way.  If no one else is willing to help you, then I'll make sure someone from our team can sit with you, learn about your vision and point you in the right direction, even if it is with a different firm.

Hope this helps!

@Sammie Baker congrats on your first investment property! I would definitely strongly consider setting up an LLC or land trust. Of course seeking legal council beforehand is strongly recommended and could save you future time money or headaches. There could also be some additional tax benefits to holding your properties in an entity. Best of luck!