All Forum Posts by: Account Closed

Thanks all. I have not run into any issue financing to this point, but getting past 10 will be different. Can someone provide a bit more detail on the options available after 10? Which option is the best course of action in your opinion? What has your experience been with hard money lenders, portfolio loans, owner financing, etc? I know what those terms mean but haven't had any experience utilizing them. Thanks!

Fellow BP friends,

Please educate me on how to grow from 2 to 100 1-4 family rental properties. I get bogged down around 10 in the feasibility on the financing end. I would plan to outsource management until it became feasible to start my own management company.

My understand is that one would need commercial financing starting with the 11th property, but on what kind of terms? Isn't it always going to be on shorter-term loans which put you at interest rate risk regarding holding the property long term? Another option is owner-financing, but how often is this a real option? Aren't 95% of sellers of 1-4 family properties against owner-financing?

Is there an obvious way to do this that I am missing?

Those of you who have gone from 0 to 20 or 100 or 500, I would love to get your advice.

Thank you!

-Josiah Smelser

Thanks for the warm welcome all! I worked as an appraiser in the DFW market for 4 years and know it well - that is why I plan to invest there. Invest in what you know is what I have been told, and I believe it is a perfect place for me considering the scale. Searcy is tiny and doesn't have the same growth prospects. Look forward to connecting with you!

I currently own some investment properties in the Dallas/Ft. Worth area and plan to continue buying in that market. I would love to connect with any of you currently investing in that market in hopes of helping one another. I look forward to touching base with you!

-Josiah Smelser

@Tyler Merrell

For a single-family property, an appraiser is going to focus in on comparable sales for your specific property in your specific market. Square footage and property condition are big drivers of value as is the underlying lot value (location). Each market has its own leanings and some markets value things like porches and garages more while other markets might not value them as much. The best advice I could give you is to look at comparable sales in the last year in your immediate neighborhood and see what they are going for $/SF wise. Try and find properties very similar to the one you will build. Since your property will be new, try to find homes built within the last five years. Hone in on why different properties are selling for different $/SF figures. Does one have granite? Does one have 3 bedrooms instead of 2? You will notice trends as you look at more comps. The best I can tell you is that based on your market, it depends. You will be able to drill down into the data and determine what is driving the value. I hope that helps you. Good luck!

Here is my idea: renovate and sell the house. Purchase a nice duplex in a good area and let her live in one side rent free while the other side covers your mortgage. Just an idea. This is a sustainable way for you to help her and not be bleeding cash.

Hello All! 

Yes - I am a Harding alumni. Thank you all for your warm welcome. You folks give me hope in my RE goals! Glad to find a group of people pushing towards the same goal. 

As for the Searcy market - my 2 cents is that it is a good area for cash flow properties but appreciation prospects are bad. That is why I am choosing to invest in DFW. Not knocking the Searcy market, but as I worked as an appraiser in DFW for several years, I know and love that market.

BP Friends,

I am happy to be a part of this growing community of real estate enthusiasts. A little bit about me: I am a licensed CG (Certified General) real estate appraiser currently living in Searcy, Arkansas where I teach Finance and Real Estate at the college level. I hold an MBA from University of North Carolina and have work experience at CBRE (in commercial valuation), Ernst and Young ( in transaction real estate), and confounding a residential appraisal company (Texas Appraisal Services). I also held my real estate license in Texas. I have experience with both flips and buy and holds.

Long story short, I have done my investing on the residential side and currently own a couple residential rental units. I really want to grow this, specifically in the Dallas/Ft. Worth market. My goal is to one day own 100 units. I know DFW market well from my years spent doing appraisal work there, and I see that market being a great place to invest long term. 

I would love to meet as many of you as are open to it, specifically any investing in the DFW market. 

God bless you all,

Josiah Smelser

Thanks so much all! I look forward to getting to know you through the BP site.

-Josiah Smelser

I am looking for advice on the best way to protect my legal liability as I buy and hold investment properties for cash flow purposes. I am looking at starting on the residential 1-4 family side. Which entity should I go with and should I use 1 entity for all properties or set up an entity for each property?

Thank you!