All Forum Posts by: John McDonald

Whether it's your first, tenth, or thirtieth investment, keep an open mind about the types of properties you consider. There's a world of possibilities out there, and each one offers unique benefits.

You might find that single-family homes are readily available and could be easier to manage or sell if the need arises. It's about balancing your portfolio and not putting all your eggs in one basket. 

Being young will present challenges in a field where experience is highly valued not just with lenders. You will need a team of people to work with, including contractors. How will you know when one is trying to rip you off, is lying to you, or what to do if a squatter moves in? 

It's wise to be cautious and aware. Many players will not have your best interests at heart. This isn't to discourage you but to prepare you for the journey ahead. Consider teaming up with a mentor or a partner who has the experience and is willing to guide you. This collaboration could be a powerful learning experience and a stepping stone to success.

Podcasts can be an incredibly useful resource to learn the ropes. Here are a few that cover wholesaling.

They often tackle real-life situations, providing actionable advice. Wholesale Hotline on Apple Podcasts

This host shares his journey from fix-and-flip investing to virtual wholesaling. Flipping Out on Property Leads

This is a great resource for new real estate investors and wholesalers, with extensive experience in real estate. Wholesaling Out of the Box on Property Leads

This is dedicated to teaching wholesalers how to consistently close deals. They share strategies for completing large deals and making a sustainable income. Send More Offers Real Estate Show on Property Leads

Focused on real estate wholesaling techniques. It’s great for learning the nuts and bolts of the wholesaling process. School Of Wholesaling on Property Leads

Provides practical insights for real estate wholesaling, including finding properties and negotiating deals. Wholesaling Inc with Brent Daniels on Apple Podcasts

Valuable insights on sales and marketing in the context of real estate wholesaling, emphasizing the importance of action and learning through experience. Real Estate Wholesaling Syndicate on Apple Podcasts

Happy listening and best of luck.

Texas has a lot of great investment opportunities across the board and they're landlord friendly. But we see opportunity in nearly every market, you just have to know how to find it. However, as others have mentioned, that might not made sense for you if you're planning to just purchase a single SFR or start flipping. Then, you're likely better to stay as close to home as possible until you get your feet wet.

Good luck.

> I want to do a refi immediately to get back the 245k. Would that work?
What's the appraisal say on the property. The bank will only loan you 80% of the appraised value. You will likely need to complete the work and have it reappraised before you can refi.

However, if you can get it appraised for $330, you may be able to refi for $264k and use that capital for your next flip property.

Good luck and let us know how it turns out.

Cheers,

If you're considering flipping, check out the neighborhoods northwest of St Louis, especially the Pine Lawn area. That area is going through a revival and there's lots of opportunities for investment. 

Good luck with your journey. 

The cap rate is your key initial indicator for "profit" but when you evaluate properties, bear in mind that many times the current expenses are inaccurate for a variety of reasons, the most likely of which is deferred maintenance which will come back to bite you later. You'll find that landlords play all kinds of tricks to ask top dollar for the property. 

Unless you have the capital to cover those unforeseen expenses, your best bet, as a new investor, is to buy a new property. Although, those will likely have much lower cap rates, and for reason, they have very low maintenance which makes them more predictable investments. Couple that with solid tenants and you have a winning formula. Although, you can expect for the investment to pay for itself in about 10 years vs 5. 

Once you have some cash reserves and feel a little more confident in your abilities, then go looking for higher cap rate properties that will provide a higher return. I have a good friend who's turning millions a year in fixer apartments, nationwide. He has a formula that works and just applies it to properties that meet his criteria. Once you have some experience, you can use the same approach, if you wish.

Good luck on your journey. 

Cheers

Lenders user a variety of data to determine the min down payment but, in general, unless you have a steller track record with the bank you'll be required to put 15-25% down on the property. Banks do not like to hold high LTV investment properties as they have a much higher risk of default when the economy goes south.

Good luck

This will be short lived, it's a minor correction. Home prices put buying out of reach for many Americans and gen Z is choosing to rent over buy at record rates in part because they prefer a more nomadic lifestyle.

Hold your ground and rents will begin to tick back up in 2024.

Cheers,

@Aaron Bard Congratulations on your first deal! It gets better from here on out. 

Good luck.