All Forum Posts by: Jordan Sutherland

I've heard talk of Bigger Pockets apparel like T-shirts on some of the older podcasts and forum posts. I did some digging online and what I've found is that they haven't been available in a few years. Surely there are a ton of people (like myself) who would like to buy T-shirts and other items with the BP logo on it. I think it could be a huge money maker for BP and help it get a lot of exposure, and maybe help a lot of people get pointed in the right direction on real estate investing, if hundreds of people were wearing the apparel. It only makes sense to me. Maybe I'm wrong, and they're available somewhere that I haven't seen. Any thoughts? 

I think it's a good idea to run the numbers this way, because it gives you a good idea of what your cashflow will look like when you move out. To calculate cashflow for a househack just take away half of the rent and what you're left with will be your monthly cashflow. It will most likely be nagative on a duplex, but if it's only negative $200/month, for example, then that means your personal housing expenses are only $200/month. That's pretty good! Also, the price per square foot on that place is a little ridiculous for a duplex in that area. I purchased a similar duplex a few blocks away last year for $34/sq ft. This is literally double that. That's probably why it has been on the market for so long. (The listing was terminated after a couple months and then relisted a few days ago). Also, I found you want to know exactly what the annual taxes are just go to www.lubbockcad.org and do an address search to get that as well as some other info.

very cool @Tyler Clearman! So do you plan on leaving once you graduate? And where are you originally from?

Welcome to BP, @Tyler Clearman! BP is hands down the best resource out there for REI, in my opinion. Did you grow up in lubbock, or are you just here for school?

I wouldn't say we've been hit by the oil boom, although it is very close to us. There are many people from here that make a long commute and work in the oil fields. From what I hear, there is potential for the oil fields to make their way closer to Lubbock. Right now, the Marsha Sharp Freeway (that goes through the middle of town) is being expanded and the construction of an outer loop is in the beginning stages. Many new businesses are popping up, and new homes are being built like crazy. Texas Tech University, two of the best hospitals within a few hundred miles, and other things keep people coming here. The cost of living is low and local unemployment is very low. There's also no shortage of land out here, to keep the city expanding!

Thanks for the input @Brian Mathews! When I say they will cash flow $100/month, that accounts for an expected average of all expenses including: mortgage, taxes, insurance, vacancy, repairs, capital expenditures, etc. I calculate almost exactly like Brandon Turner suggests, so if something like an HVAC unit needs to be replaced, I've budgeted for that, and will gladly have it replaced. I'm in it for the long run, so for the long term, even with crazy expenses like that, it should still net $100 month. Also, Lubbock is rapidly growing, and is growing in the direction of these properties. I would be seriously expecting about $4,000/year appreciation at least on these properties. And I also see the rents going up $50/year over the next few years, while my payment would remain the same. There should not be a ton of cashflow immidiately, especially if major problems come up soon, but over a few years, it should be at least $100/door/month with good potential for appreciation and some great instant equity upon purchase. 

Hey guys, I've been looking for my next SFR or small multi family deal for the past month. I'm pre-approved for a conventional loan with 20% down at 5% interest amortized over 30 years. I'm a realtor and look for deals on the MLS every day. It's been slim pickings in my local market lately! I have found two off market deals, through personal connections and i think both of these deals are worth investing in. I would love to hear your opinion on the potential investments! Both of them are in totally different neighborhoods of my hometown, Lubbock, TX. Based on analysis and comps, both properties are easily worth around $115,000-$120,000 each. I can purchase both for around $95,000-$100,000 each, and both homes will cashflow around $100/month each. Both are 3/2/2 Brick SFR's built in the 80's, and in good condition. The projected cash flow on these is not wonderful, but both deals have instant built in equity. Both of these homes also are on the outskirts of a growing city, in good B class neighborhoods, and should have great potential for long term appreciation. Both deals have so much potential, but I'm a little hesitant to go for it, because the cash flow is not that great. I have three rental units right now, and I'm trying to expand rapidly, but want to minimize my mistakes. Any cashflow I make will be directly reinvested into acquiring more rentals. These won't provide a whole lot of cash flow in the short term, but will still provide $100/month (conservatively) each while financed, and offer great potential for appreciation. Do you guys think I should pull the trigger? I appreciate any input you guys have! Thanks!

This is the third time, I've posted this thread. The first two times, I never got a single reply. Come on BP, you're letting me down right now!  Please give me 2 minutes of your time to answer a debatable question for me, PLEASE!!                                      Hey guys, I'm fairly new to real estate investing. I own 3 residential units and am looking to purchase a couple more units this year. I've been inspired by so many people on BP, and I want to safely expand my portfolio rapidly over the next few years. I've seen some very creative ideas and it got me thinking. I have a wealthy family friend that has financed my rentals and he is willing to finance more in the future. Like I said, I want to grow rapidly, and I think finding a way to purchase a small apartment building might be a good way to do that. The only thing is, I don't have the money for such a large purchase. I'm thinking about asking my friend to go in on a deal with me, and I want the terms to be very favorable to me, while still being lucrative for my friend as well. So here's my idea: my friend and I purchase a small apartment building for somewhere around $400,000-$1,000,000, that has around a 8-10% cap rate. Together, we put 25% down and finance the rest through a bank on something like a 20 year note. I want to only be personally responsible for a quarter of the down payment (25% of 25%), while my friend pays the remaining 75% of the down payment. I'm a licensed Realtor and my family owns a property management company. I would do all the work to find the right deal, and I would be responsible for management of the property. I would only want to do this on a property that I know we're getting a great deal on. I would want 50% ownership in the property, and 50% of the cashflow , after we have a good amount of reserves set aside. My friends initial monetary investment will be 3X what mine is, but it will be completely passive for him. He is a very wealthy man, is not greedy whatsoever, and is perfectly content with a fairly small ROI (4%-8%) , on passive investments that he views as safe. Would my small down payment and "sweat equity" be worth 50%, or am i just dreaming? I would love to hear your opinions!! Thank you for taking the time to read my post and any creative ideas or suggestions will be greatly appreciated!

Hey guys, I'm fairly new to real estate investing. I own 3 residential units and am looking to purchase a couple more units this year. I've been inspired by so many people on BP, and I want to safely expand my portfolio rapidly over the next few years. I've seen some very creative ideas and it got me thinking. I have a wealthy family friend that has financed my rentals and he is willing to finance more in the future. Like I said, I want to grow rapidly, and I think finding a way to purchase a small apartment building might be a good way to do that. The only thing is, I don't have the money for such a large purchase. I'm thinking about asking my friend to go in on a deal with me, and I want the terms to be very favorable to me, while still being lucrative for my friend as well. So here's my idea: my friend and I purchase a small apartment building for somewhere around $400,000-$1,000,000, that has around a 8-10% cap rate. Together, we put 25% down and finance the rest through a bank on something like a 20 year note. I want to only be personally responsible for a quarter of the down payment (25% of 25%), while my friend pays the remaining 75% of the down payment. I'm a licensed Realtor and my family owns a property management company. I would do all the work to find the right deal, and I would be responsible for management of the property. I would only want to do this on a property that I know we're getting a great deal on. I would want 50% ownership in the property, and 50% of the cashflow , after we have a good amount of reserves set aside. My friends initial monetary investment will be 3X what mine is, but it will be completely passive for him. He is a very wealthy man, is not greedy whatsoever, and is perfectly content with a fairly small ROI (4%-8%) , on passive investments that he views as safe. Would my small down payment and "sweat equity" be worth 50%, or am i just dreaming? I would love to hear your opinions!! Thank you for taking the time to read my post and any creative ideas or suggestions will be greatly appreciated!

Hey guys, I'm fairly new to real estate investing. I own 3 residential units and am looking to purchase a couple more units this year. I've been inspired by so many people on BP, and I want to safely expand my portfolio rapidly over the next few years. I've seen some very creative ideas and it got me thinking. I have a wealthy family friend that has financed my rentals and he is willing to finance more in the future. Like I said, I want to grow rapidly, and I think finding a way to purchase a small apartment building might be a good way to do that. The only thing is, I don't have the money for such a large purchase. I'm thinking about asking my friend to go in on a deal with me, and I want the terms to be very favorable to me, while still being lucrative for my friend as well. So here's my idea: my friend and I purchase a small apartment building for somewhere around $400,000-$1,000,000, that has around a 8-10% cap rate. Together, we put 25% down and finance the rest through a bank on something like a 20 year note. I want to only be personally responsible for a quarter of the down payment (25% of 25%), while my friend pays the remaining 75% of the down payment. I'm a licensed Realtor and my family owns a property management company. I would do all the work to find the right deal, and I would be responsible for management of the property. I would only want to do this on a property that I know we're getting a great deal on. I would want 50% ownership in the property, and 50% of the cashflow , after we have a good amount of reserves set aside. My friends initial monetary investment will be 3X what mine is, but it will be completely passive for him. He is a very wealthy man, is not greedy whatsoever, and is perfectly content with a fairly small ROI (4%-8%) , on investments that he views as safe. Would my small down payment and "sweat equity" be worth 50%, or am i just dreaming? I would love to hear your opinions!! Thank you for taking the time to read my post and any creative ideas or suggestions will be greatly appreciated!