All Forum Posts by: Jack Grove

@Okansa Patrick Were you required to utilize a hard money lender when dealing with New Western? I am looking into my first property and have been pre-approved for a renovation loan from a conventional lender. I was told that New Western would not allow this type of financing. 

@Pauline Zhao @Lance Lvovsky

I appreciate the help guys! I will look into Quickbooks and Stessa for bookkeeping. 

While researching the best options for incorporating I have found that a Series LLC in Texas is an easy and viable option. If I am not mistaken, in order to maintain asset protection the financials for each "child series" need to be clear, concise, and separate - meaning I will need to track financial statements for each series. Aside from the standard three statements (cash flow, balance, and income) what other documents will need to be tracked to maintain protection for each child series?

Also, is there a good place to look for obtaining the necessary statements? Or will I need to create my own statement on excel? 
 

When creating a CapEx table to calculate your yearly and monthly costs, should you include some sort of inflation rate for the items that have a longer life span?

@Asa Hunt Would you mind messaging me about the meet up? I am in the Dallas area, and trying to educate myself. Multifamily has piqued my interest recently, would love to hear what you and others have to say. 

@Kenneth McKeown I appreciate the feedback and the quick response, and I am glad to see the Aggie network doing its thing even on BP! I posted some responses to your questions below:

1). Our current goal for investing is to accumulate capital for larger scale projects whether it be MFH investing or land development & leasing. We are looking on developing a business plan and company infrastructure over the course of the next 7-10 years and then, given we have enough capital, start our own company. What are the methods of digging deeper than Zillow/Trulia? We have thrown around the idea of obtaining our real estate license so that we can have access to the MLS. From what I hear the MLS is not always the best way to find the best deals? Personally, I think our best bet is networking and finding a partner that can bring us deals with a mutual financial benefit. But, as I mentioned originally, it will be a challenge for us to find this partner without a track record to back us up.

2). Unfortunately, I think you are correct on the Frisco area. If we had started 10 or so years ago there was large potential, but we have missed the curve in that market (for now). Has the window already come and gone in McKinney? I remember reading something saying that McKinney was one of the top flipping locations in Texas. Looking at the construction and growth of school districts in the area I think McKinney is going to grow north and soon Anna/Mellissa will grow and meet with Prosper. Due to this reasoning, I am drawn to flipping the older houses in these locations to meet the growing demand of younger families. As for flipping vs. renting, we are looking to do one rental for every 3-5 flips or such. We want to build capital and then acquire passive income from this capital. 

3). Due to being recent graduates, we do not have a lot of capital built up already. We are hoping to leverage other peoples money to generate this capital. We are thinking of starting an umbrella company that owns LLCs that house 2-3 flips at a time. So I am not sure how this would affect purchasing under our own names/using our income for loans. If we were to build our company around this model, could we still use FHA loans and turn the property over in 5-6 months max?

Hope this answered some questions and provided a little more insight. I look forward to continuing the conversation. 

Howdy! To start I would like to give a little background information on myself. I recently graduated from Texas A&M and am working full time in the construction industry. During my time at school, I befriended two other like-minded guys and together we have discussed the idea of dipping our feet into real estate investment and maybe one day starting a development company. We are currently in the process of furthering our knowledge before we make any big moves. More specifically, we are researching what market we want to begin investing in and determining the type of financing we need to acquire. 

I have listened to many podcasts and spent the last year or so periodically reading about REI online, but I figured it was time I began interacting with the community and receive some helpful feedback/constructive criticism. Below are a couple of questions that come to mind:

1). How can we accurately perform a market analysis to ensure we are investing in the correct locations? I understand the basics of looking at Zillow and Trulia and identifying the median home prices in specific areas and understanding the statistics behind the community, i.e schools, crime, growth, etc. But is this just the tip of the iceberg, or is that basically what market analysis consists of? 

2). Tips and recommendations on where to begin searching? I feel like north Dallas (Between Plano and Van Alstytene, and McKinney and Frisco) is a fast-growing area and has buy and hold potential, but I am not sure how well the flipping opportunities are within this geographical constraint. 

3). What is the best source of financing for three beginners? Obviously, our combined income could obtain us a decent loan with a down payment on a house, but for multiple properties, I am not sure how well we would fare. I know we can swing our construction experience into our resumes but besides that, the lack of experience will likely hurt us. Unless we can acquire all of our financings from PMLs, I imagine that financing will be our biggest hurdle. 

We are eager to learn and look forward to any and all advice. Please PM me if you have any further questions or thoughts.