All Forum Posts by: Jacque Mihovk

I’m a “new” investor and find myself in an in between phase that seldom gets talked about on the podcasts or in the forums. I have professional exposure to commercial real estate investment but have not done any deals personally. I’m established in my career and not looking to make RE my full time but I don’t have a ton of capital and I enjoy modeling and underwriting and being hands on with management so the passive/syndication route isn’t an option. Additionally, house hacking isn’t an option as I have 3 young children.

I feel like my best route to getting started is by working with partners or private lenders given my current available capital. However it’s hard to get that ball rolling without any deals under my belt even though I do have experience with managing a syndication and property management through my professional career.

I get very excited about investing and see it being a large part of my future. I’d love to have real estate provide some financial freedom/flexibility and create a portfolio that I could eventually get my kids involved with and pass down to them, but I end up feeling frozen/stuck based on the factors above.

I know I need to find a way to start taking action but don’t quite know what that is right now, I’d love to get some feedback/thoughts on what those next steps should look like.

Thanks in advance for your help.

Sounds like you have amazing experience. More than 99% of people getting started. What do you want to do?

Sean,

I have had some good exposure to larger commercial/industrial deals but would like to start investing on my own for small multi family properties, ultimately end goal is to build a portfolio that can someday support my retirement, provide flexibility for my family, and create something that I can work on with my kids to show them the power of real estate and entrepreneurship and hopefully someday pass down to them.

I have a good job as a corporate CPA, I’m not looking to leave that to go full time necessarily, more looking to build toward an early retirement in 15 years (dream scenario).

0 Votes

Boston, Massachusetts

Quote from @Nicholas L.:

@Jacque Mihovk

why not split the difference between your immediate area and a random market thousands of miles away? can you go 1-2 hours out for a lower price point but retain the ability to be hands on?

those $125K properties look good on paper but aren't going to get you anywhere.

Great point. I’m stating to look around some of the smaller markets outside of Boston, starting to dive deeper into market research to see if some of the more affordable areas are sustainable for rentals.

0 Votes

Boston, Massachusetts

Quote from @Zachary Gray:

Thank you so much! Always happy to help. Pumped that you’re starting to attend these local meet ups.

id love to connect sometime over coffee if you’re around

That would be great, looks like profile says your in Framingham, I take the commuter rail out of West Natick a couple times per week so could meet after work sometime.

0 Votes

Boston, Massachusetts

Quote from @Drew Sygit:

@Jacque Mihovk what can you buy with the funds available, assuming 20-25% down payment and financing the rest?

Hi Drew,

In my market with those assumptions, I can’t buy anything. I have explored long distance markets a little bit (Detroit, St. Louis, Cleveland) where I could probably take something down in the 125-150k range by myself (assuming 20-25% down), but I always circle back to trying to start locally.

I would love to network with more people locally that are investing long distance. Given my strengths are in the analytical and administrative areas, long distance might be a good fit for me but would like to dive deep with people who are actually doing it.

Thank you.

1 Vote

Boston, Massachusetts

Quote from @Scott Mac:

Quote from @Jacque Mihovk:

Hi BP Community,

I know I need to find a way to start taking action but don’t quite know what that is right now, I’d love to get some feedback/thoughts on what those next steps should look like.

Thanks in advance for your help.

Hi Jacque,

All of the sales seminar hype aside, let's talk about where the rubber meets the road.

You say you are good at running the numbers on these deals and managing, so what is your ballpark estimate of how much money you are needing to be able to buy, refurbish, and run what you're looking for.

Are you aware that on some deals some lenders may require certain net worth requirements of you, and certain amounts of cash equivalents to belong to you to qualify as a borrower?

Hi Scott,

In my immediate market that I hope to buy in, small multifamily properties run 500k-700k. For a first property I’m hoping to avoid a heavy rehab so light cosmetic fixes and likely will be low if any cash flow as it’s mostly an appreciation market. With that in mind I’m projecting 200-250k to fund a 25% down payment, closing costs, light rehab, and 6 months of debt service and opex as reserves. Could probably cut that down a little but I tend to underwrite conservatively.

And yes, I’m aware that literally every lender will have different requirements, that’s part of the battle is finding the right debt. If I don’t meet the net worth requirements of a lender then that’s not the right lender. Also those levels of requirements are more common on larger commercial loans, I’m hoping to start in the residential space 4 units or less.

Thanks again for your help.

1 Vote

Boston, Massachusetts

Quote from @Nicholas L.:

@Jacque Mihovk

hello and welcome. unfortunately, i don't have a great answer for you. the market is tough right now, with prices high, rates high, demand high, and inventory low. and a lot of the strategies that still work are very hands-on and time intensive.

i would not recommend starting with partnering or private lending. with no experience, it wouldn't make sense to borrow the capital of a private lender.

if you have enough cash to buy a property with a traditional down payment to get your foot in the door, you can do so. just know that you will likely be INvesting cash for several years while it's stabilizing, and you may not cash flow or see any return whatsoever for 5 or 10 years or longer.

to quote the princess bride - anyone who says differently is selling something.

Nicholas,

Thanks for the insight. I’ve been realizing more and more that I need to find a way to just get a deal done on my own to get the wheels in motion, which most likely would need to be long distance given the price constraints in my market.

Thanks again.

0 Votes

Boston, Massachusetts

Quote from @Zachary Gray:

I think the value would be to identify your strengths

operating, underwriting, administrative, analytics, etc

then search for areas where you may be weaker such as deal finders, people with access to capital and opt to partner. I think its easiest to connect with these people at meetups.

Another avenue that may be enticing would be pursuit of short term rental. short term rental can often be acquired at 5% down. Short term rental depreciation can be accelerated via a cost segregation and utilized to offset your taxes from your w2. By reducing your tax burden of your W2 while also reaping the benefit of the short term rental cash flow, you may be able to free up more capital to scale more quickly. Im not personally a short term rental Investor but these are some of the benefits that may support your pursuit of scaling more rapidly

Hi Zachary,

Thanks for the insight, I’m planning on going to more of the Simplified meetups in the area, I went to one in Waltham in August but the last two I haven been out of town.

I’ll have to look into the STR loophole a little more, that wasn’t one my radar previously.

FYI, I enjoy the content you’re putting out in IG, I started following you and Andrew Freed a couple of months ago.

0 Votes

Boston, Massachusetts

Hi BP Community,

I know I need to find a way to start taking action but don’t quite know what that is right now, I’d love to get some feedback/thoughts on what those next steps should look like.

Thanks in advance for your help.

3 Votes

Boston, Massachusetts

All Forum Posts by: Jacque Mihovk

Jacque Mihovk has started 1 posts and replied 8 times.

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